Older People’s Commissioner for Wales urges reversal of Winter Fuel Payment cuts

The Older People’s Commissioner for Wales has called on the UK government to reconsider its decision to means-test the Winter Fuel Payment, a move that will see around 360,000 Welsh pensioners lose out on vital financial support.

Speaking in Commons on Monday, Chancellor Rachel Reeves unveiled a wide range of cuts aimed at addressing a £22 billion deficit in public finances. Among these cuts, the means-testing of the Winter Fuel Payment stood out as particularly impactful.

Ms Reeves stated, “I am making the difficult decision that those not in receipt of Pension Credit will no longer receive the Winter Fuel Payment from this year onwards. Let me be clear: this is not a decision I wanted to make, nor is it one that I expected to make. But it is a necessary and urgent decision I must make – it is the responsible thing to do to fix the foundations of our economy and bring back economic stability.”

The Winter Fuel Payment, designed to help pensioners manage higher heating costs during the colder months, will now be restricted to individuals over the state pension age who are also receiving pension credit or a select few other benefits, including income support, income-based jobseeker’s allowance, income-related employment and support allowance, and universal credit.

As a result, eligibility has been drastically reduced from 11.4 million people to approximately 1.5 million.

Heléna Herklots, Older People’s Commissioner for Wales, highlighted the severe impact of this decision, noting that around 80,000 households in Wales who qualify for pension credit are already missing out on over £200 million they are entitled to.

“The Chancellor’s decision would mean that these households could now also miss out on tens of millions of pounds more that could make a big difference in terms of people’s finances,” Ms Herklots stated.

She also expressed concern for those living just above the pension credit threshold, who are already excluded from various forms of support linked to pension credit, such as council tax discounts.

“I would urge the Chancellor to reconsider this decision ahead of her budget to avoid driving more older people in Wales into poverty, and putting people’s health and well-being at risk, which could bring greater costs in the longer-term,” Ms Herklots urged.

Previously, the payment provided £200 to households with recipients under 80, and £300 for those with someone over 80. Last year, an additional £300 per household was provided as a cost of living payment.

The announcement has also drawn criticism from Andrew RT Davies MS, Leader of the Welsh Conservatives, who addressed the rejection of an Emergency Question regarding the cuts in a recalled Senedd session.

He questioned the Welsh Government’s stance on universal benefits for pensioners and called for clarity and action to support affected individuals.

“Those Welsh pensioners affected would much rather know what support they will be receiving this winter now that Labour has denied them their winter fuel payments,” Davies commented.