• PENSIONSANDSAVINGS.COM

    From Ros Altmann:economist and pensions,
    investment and retirement policy expert

  • pensionsandsavings.com

    Axing winter fuel payments makes a mockery of promising to protect the triple lock – it’s a 2.5% – 3% cut in State Pension!

    Axing winter fuel payments makes a mockery of promising to protect the triple lock – it’s a 2.5% – 3% cut in State Pension!

    • Axing Winter Fuel Payments is worse than scrapping the triple lock – it’s a 3% cut in Basic State Pension – this should be rethought. 
    • Pensioners were already losing the cost of living bonus, removing Winter Fuel Payments so suddenly, as energy bills may start rising again, is a double blow. 
    • Relying on means-testing creates a cruel cliff-edge that leaves low income pensioners just above the threshold, thousands of pounds a year worse off.

    Worse than losing the triple lock – all over 80s face a 2.5% – 3% state pension cut: The shock announcement that the Government wants to axe the Winter Fuel Payments for ten million pensioners is a real body blow for millions of pensioners. I do hope the Government will reconsider. This makes a mockery of the pledge to protect the triple lock, which offers a minimum 2.5% increase. Yet removing £300 Winter Fuel Payments amounts to a 3% cut for those on the Basic State Pension.

    Pensioners were already losing the extra cost-of-living payments, just as energy bills may rise again:  Older citizens are already losing the extra cost of living payments they received last winter. Now, taking away the £200 or £300 many were expecting to receive this November, in just a few week’s time, comes as a body blow for those just above the means-testing threshold.

    Over 80s losing £300 and under 80s will lose £200, without warning: Taking £300 away from payments to the over 80s amounts to a 3% cut in the money received by those on the £8814 a year Basic State Pension and a 2.5% cut to the amount received by those on the £11,500 New State Pension. For under 80s, it is a 2.2% reduction in payments to those on Basic State Pension, or a 1.7% cut in the new State Pension.

    Treasury needs to reconsider this decision: I do understand the attraction to the Treasury of saving £1.5billion in one fell swoop, but this will create real hardship for many older citizens and I hope there will be some reconsideration here.

    There is already a stark cliff-edge that leaves those just above the means-test cut-off losing thousands of pounds a year: This announcement adds to the problems already inherent in the current means-testing system. Pensioners who fail to qualify (or the 800,000 who do not claim their entitlement) for Pension Credit lose out on significant top-up benefits which the means-test passports them to, such as help with Council Tax, energy bills, cold weather payments, housing benefits and more. This means they lose a further £200 or £300, which so many can ill-afford.

    Chancellor should consider taxing these payments rather than abolishing them, pending proper review of State Pensioner support: This knee-jerk reaction forces the Treasury’s  burden of cost-savings onto some of the most vulnerable citizens. I have long advocated rolling the Winter Fuel Payment into a higher State Pension and then it becomes taxable, which will itself mean cost-savings to the Treasury. £300 a year may seem insignificant to most policymakers, but to pensioners it can be really important.  I do hope this sudden decision can still be reversed for this year at least.


    20 thoughts on “Axing winter fuel payments makes a mockery of promising to protect the triple lock – it’s a 2.5% – 3% cut in State Pension!

    1. Pensioners because of age cannot keep working and have paid into the system all their working lives. It is unfair to take away WFA from pensioners. Why not take away the income tax deduction of service charges paid to Managing Agent that landlords who rent out leasehold flats receive? Compared to a leasehold flat owner living in own flat but not rented out keep paying service charges to Managing Agent get no tax deduction in respect of the service charges paid to Managing Agents.

    2. not surprised at this announcement re taking away the winter fuel allowance, always knew the Labour party would penalise pensioners, but this is a cruel step. I still dont get the full state pension in my own right, as my husbands pension is added to my own., therefore I cant claim pension credit. pensioners have worked hard all our working lives to get what little we get from the state, and now we are having to pay for the wage increases in the public sector. Shame on you Rachael Reeves.

    3. Is there anything pensioners can do to stop this from happening. I am a 77 year old pensioner on my own and all my friends are asking if there is a petition that we can sign.

    4. I dread to think how this policy is going to impact low income pensioners and Waspi women .
      The energy companies must already wondering how this is going to affect their profits this winter ! Hypothermia will be on the increase and hospital beds full this is false economy.

    5. Another hit on the old and frail. We are struggling with bills now, but they will be nice and warm in their homes while we freeze because we can’t afford to put any heating on. 🤬

    6. I am a Waspi women born in 1954 my State Pension is £606 per month I cannot claim Pension credit as I have savings over £10,000( I was hoping to leave to my Children). My two children are self employed and work dam hard I have one adopted grandchild. I live with my partner and we currently rent not own property he also has savings . Our savings come from selling our property, sadly as prices went over what we could get on mortgage because of our age. There are many in this state of limbo and taking our fuel payment away is another nail in our coffin. We are both English born and bred and have worked hard and payed taxes all our life. I am sad for the state of this country in that the old are of no value to society any more Shocking !

    7. Have we not had enough cuts had to wait till 67 for pension and bus pass after paying ni contributions. Now only received 2 winter fuel payments and that’s been snatched away. What’s next skin off my back.

    8. I agree. Although the previous arrangement was not ideal and some pensioners did need t really need the extra payment, there are many that do really need the benefit.

      The decision to simply means test the benefit, is a poorly thought out policy. It also conveys an uncaring approach by the new Government.

      Let’s hope it is quickly reviewed

    9. This is awful, how many of oldies will died this winter. How many of the oldies will choose to eat or have heat. Like most of us oldies I worked and paid my NI dues as requested. I didn’t vote for this government and this action shows that I was right to not vote for them. Labour government hang your head in shame, you want most of older Generation to died well before their time.

    10. This is so unfair we are not having any extra help only because my husband has continued to work although he is past retirement age. what with having to work 6 extra years myself. we never go out never have a holiday, we do not smoke or drink, so our last years are very miserable ,with no treats . you work all your life just to exist in retirement.

    11. This is unbelievable taking away money which is really needed from pensioners My husband is a pensioner and had an accident 4 months after retiring at the age of 67 he is now mentally and physically disabled and does not receive mobility or disability benefits because he is of pension age and I already struggle to keep us I am 65 and do not receive a pension because they changed all that how much more can we take my husband has served this country in the Army but this country is not serving him it’s an absolute disgrace 😔

    12. It’s disgusting. This is the first year I would qualify, having waited until I was 66 (in May this year) for my State Pension. It’s abhorrent that so much money is given to all the illegal immigrants rocking up on our shores, and those of us who worked hard all our lives are the easy target immediately.

    13. Thank you for your support.
      I am 77, divorced and on the old State Pension and just about managing as I have income from invested savings, which have unfortunately been greatly eroded since the Fiscal Event.
      As well as shock that the Winter Fuel Payment is being taken away, I feel that if at all, perhaps it could have been have been taken from the New State Pensioners – they receive around £50 a week more than the Old State Pensioners, who are older, need more care, heat and support with technology, jobs around the house etc. which we can no longer do, all of which cost.
      My other concern is that when pensioners are generally referred to in the media, we are all lumped together as receiving around £11,000 a year. I receive less than £7,000, and resent being considered by some as a wealthy pensioner. I’ve saved and lived modestly, as have a lot of my generation, but we older Basic Rate Pensioners don’t appear to have much of a voice or have our difficulties aired. We neither have a good state pension nor can we claim any benefits, and are unable to work to earn extra money.

      We do need to be heard.

    14. Personally I’m not too worried about losing the winter fuel payment however there are pensioners out there who do need it. This is typical Labour Party, the British people voted them in and now we have to deal with the waffle and lies for the next 5 years.

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