Winter Fuel Payment

(asked on 20th November 2024) - View Source

Question to the Department for Work and Pensions:

To ask His Majesty's Government, further to the letter and impact assessment from the Secretary of State for Work and Pensions to the House of Commons Work and Pensions Select Committee on 19 November, what assessment they have made of the forecast that 100,000 additional pensioners per year will move into poverty as a result of changes to the winter fuel payments.


Answered by
Baroness Sherlock Portrait
Baroness Sherlock
Minister of State (Department for Work and Pensions)
This question was answered on 3rd December 2024

The last Labour Government lifted more than 1 million pensioners out of poverty, and this Government remain absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement.

The latest modelling in the department shows that compared to the numbers that would have been in poverty without the policy to means test Winter Fuel Payments, it is estimated that there will be an additional 50,000 pensioners in relative poverty after housing costs in 2024/25, 2025/26, and 2027/28, and an additional 100,000 pensioners in relative poverty after housing costs in 2026/27, 2028/29 and 2029/30. For all other measures of poverty, it is estimated that there will be an additional 50,000 pensioners in poverty each year from 2024/25 to 2029/30. It is important to note that this modelling is subject to a range of uncertainties meaning the poverty impacts are rounded to the nearest 50,000 individuals which should be taken into account when interpreting the results.

The modelling does not take into account any impacts of the measures we are taking to increase Pension Credit take-up and to ensure pensioners get the benefits to which they are entitled.

For further details on the analysis, please see: Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK

We have taken immediate action to increase the take up of Pension Credit, working with charities, local authorities and through a campaign on radio, TV and print media. The Government has written to around 11.5 million pensioners about the changes to the Winter Fuel Payment and included information about claiming Pension Credit. We have also written to 120,000 pensioners on Housing Benefit who could be entitled to Pension Credit, to encourage them to claim. Our campaign has seen Pension Credit applications increase by 152%, and we will continue with this endeavour.

In the longer term, the Department will work to bring together the administration of Pension Credit and Housing Benefit, to ensure that pensioner households receive the benefits to which they are entitled.

We have also put in place extra financial support for the most vulnerable households including pensioners through the £150 Warm Home Discount to help with energy bills, the Cold Weather Payments and our extension of the Household Support Fund.

This is all underpinned by the State Pension, protected by the Triple Lock. Over 12 million pensioners will see their basic or new State Pension increase by 4.1% in April 2025, worth up to £470 a year. Based on OBR Autumn 24 forecasts, over the course of this parliament, the full yearly rate of the new State Pension will go up by around £1900. At the same time, the full yearly rate of basic State Pension is forecast to increase by around £1500.

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