Rachel Reeves cuts payments for pensioners

Rachel Reeves has addressed parliament to disclose her findings of a Conservative fumble over £22 billion of overspending. This overspending now means that the Labour government will have to find a way to make this back and ensure public spending is going where necessary.

Rachel Reeves has announced the plan to restrict the winter fuel payments this year. This news has come as a shock to those who receive the payment which helps them with their energy bills during the colder months of the year.

 

Who was getting these payments?

In the Winters over 2022-23 around 11.3 million people were receiving the Winter Fuel Payments.

 

How much were the payments?

Winter fuel payments were around £100-300 depending on the specific situation of each household. This offered significant support for pensioners who are only receiving the state pension. The money was paid in November or December to allow pensioners to keep their heating on.

Age UK has expressed their concern over the new restrictions on Winter fuel payments as they report around 1 million elderly people have a weekly income less than £50 above the poverty line. Without the help of this government funding they could struggle to heat their home over winter.

 

Who will be eligible now?

Reeves has tightened restrictions which will mean around 10 million people will now miss out on this payment. Only those above state pension age and receiving pension credit or some benefit alternative and on a low income will be eligible.

If your income is below £218.15 a week or £332.95 joint with a partner you will be eligible.

Savings will be taken into account to determine eligibility.

If you suffer from a disability or severe illness then you could also be eligible despite the above.

 

 

Not only will the winter fuel payments be restricted this year but the energy price cap is predicted to increase in October meaning bills will be higher again this winter. Pensioners will be without further support to keep their homes heated and safe during the cold winter months. If you need to find way to reduce your energy usage then look for tips here.