400,000 households in Wales affected by Winter Fuel Allowance cuts

The UK Government has confirmed that 400,000 households in Wales will be affected by cuts to the Winter Fuel Allowance.

The figures were revealed by the Secretary of State for Work and Pensions Emma Reynolds, in a written response to Plaid Cymru’s Work and Pensions spokesperson, Ann Davies.

The payments of up to £300 had previously been made available to everyone above state pension age. However, from this winter pensioners will only receive a payment if they are receiving pension credit.

Thousands of older people in Wales will no longer be eligible to receive the allowance following the introduction of the means test by Chancellor Rachel Reeves.

Ms Davies, the MP for Caerfyrddin described the figures as “shocking” and said they demonstrate the decision to means test the Winter Fuel Allowance “is far too restrictive”.

‘Scapegoated’

“Pensioners are being pushed deeper into fuel poverty, unfairly scapegoated by Rachel Reeves to promote a pro-austerity narrative that will have serious consequences for older people”, she added.

“Even if we accept Labour’s argument that pensioners don’t need this support due to rising pensioner incomes, are they really suggesting that 400,000 pensioners in Wales are well-off and can manage without support this winter? Anyone with any understanding of Welsh communities will know that notion is absurd.

“It is now time for the Labour UK Government to recognise the scale of this change and admit they got it wrong. With the average annual energy bill set to rise by £149 this October, and a possible further rise in January, this really isn’t the time to be putting at risk pensioners’ ability to heat their homes. Plaid Cymru urge Labour to reconsider this change, for the sake of the health and wellbeing of older people.”

Overall, the cut to the Winter Fuel Allowance is expected to reduce the number of pensioners in receipt of the payment in England and Wales by 10 million, from 11.4 million to 1.5 million, saving some £1.4 billion this financial year.

The payment is a devolved matter in Scotland and Northern Ireland.

‘Unfunded spending commitments’

Defending the cuts, the Chancellor has blamed the previous Conservative administration for leaving a “£22 billion black hole” due to “unfunded spending commitments” with “no idea how to pay for them”.

She told MPs yesterday (3 September): “When I became Chancellor I took an immediate audit of the spending situation to understand the scale of that challenge, and I made difficult decisions to put the public finances on a sustainable footing. They were tough decisions, but they were the right decisions.

“This includes the decision to make the winter fuel payment better targeted so pensioners who need it most will get it alongside pension credits.”