Chancellor Rachel Reeves’ shocking decision to scrap the Winter Fuel Payment within days of coming to power may be the defining moment of this Labour government. The shock was instant.
Reeves claimed wealthy pensioners didn’t need the cash, worth up to £300 every winter
But the grim truth is that two million of the poorest pensioners desperately need the money and now face a terrifying battle to stay warm without it.
From now on, only retirees who get means tested benefit Pension Credit will qualify for the Winter Fuel Payment. Reeves thought that was fine but she got two things wrong.
First, almost one million pensioners who are eligible for Pension Credit fail to claim a payment that is worth a hefty £3,900 a year on average.
As well as losing that, they’ve now lost another £200 or £300 of Winter Fuel Payment.
Second, pensioners who are just above the £11,345 cut-off point for Pension Credit claims are typically worse off than those whose income falls just below it. That’s because they don’t get the extra £3,900.
They also miss out on further support linked to Pension Credit, including help with council tax, housing costs and heating bills.
Pension Credit also acts as a gateway to other benefits such as free TV licences for the over-75s and even dental treatment.
So in practice the poorest pensioners of all lose out. How could Reeves not know this?
Today, we learned her raid will be even more brutal.
From October 1, the energy cap jumped by 10%, lifting it to £1,717 a year for the average household on a dual-fuel contract paying by direct debit.
The previous cap was £1,568 so this added £149 to bills, just as the days got shorter and colder. This made Labour’s decision to act the cap even worse.
Now pensioners have suffered yet another energy shock.
Energy regulator Ofgem sets the price cap every three months, and most people expected it to fall from January 1. Instead, we’ve just learned that it’s likely to rise again.
Respected energy forecaster Cornwall Insight expects Ofgem to reveal on Friday that the price cap will rise by 1% to £1,736 from January.
That will add another £19 to fuel bills. That’s on top of the £149 hike in October, and with no Winter Fuel Payment to ease the burden.
Tory shadow work and pensions secretary Helen Whately said: “This is another blow for the 10million pensioners who have been robbed of their Winter Fuel Payment by Sir Keir Starmer.”
She added: “Sadly we’re going to have to get used to bills going up under the Labour Party, and this is just the start.”
Unfortunately, she’s right about that.
Everything is getting pricier at the moment.
Council tax bills will rise by £100 from April after Starmer told local councils they could hike charges at three times the rate of inflation. Millions now face paying £3,000 a year.
Food bills are likely to climb too, again, thanks to Reeves decision to hike employer’s National Insurance in the Budget.
This will cost the supermarkets a fortune – a staggering £250million a year in the case of Tesco – and they’ll pass the cost to customers in the shape of higher prices.
Whately said Labour must rethink its Winter Fuel Payment blunder saying: “There is still time to reverse their cruel cut before the cold sets in and pensioners start to suffer from Labour’s choices.”
Not much time, though. Winter is suddenly upon us, with snow set to hit the UK.
When it comes, pensioners need to know they can afford to turn on the heating. Thanks to Labour, millions don’t think they can. Some could freeze and fall ill as a result. Or even die. How cruel can Labour get?