UK Government accused of being ‘out of touch with rural households’ after Winter Fuel Payment cuts

Plaid Cymru’s Rural Affairs spokesperson has said the UK Government is “out of touch with the reality faced by rural households” after cutting the Winter Fuel Payment for the vast majority of pensioners.

Caerfyrddin MP Anne Davies pointed out that 68% of households in Carmarthenshire lived in homes with poor energy efficiency in 2022, and that 39% of households live off the gas grid, and therefore are dependent on more expensive energy sources.

Ms Davies said that the Labour UK Government’s policy of restricting the winter fuel allowance to those on pension credit, compounded with the rise in the energy price cap by Ofgem, could exacerbate poverty among pensioners in rural areas.

Struggling

She said: “As winter approaches, the news that energy bills will rise by £149 in October under Ofgem’s new price cap is deeply concerning for households across Carmarthenshire. This increase comes at a time when many are already struggling to make ends meet.

“In this context, the UK Government’s decision to scrap the Winter Fuel Payment of up to £300 for 10 million pensioners is nothing short of alarming. This vital support, which last year helped 42,531 pensioners in Carmarthenshire, is now being taken away at a time when it is needed the most. For many elderly residents, this payment is a lifeline, ensuring they can afford to heat their homes during the coldest months of the year.”

According to Age Concern Cymru, between 70,000 to 80,000 pensioners in Wales don’t receive the Pension Credit for which they are eligible because they do not claim it.

Pensioners will also have up to £600 less this winter in UK Government support with their heating bills, compared to last year, because cost-of-living payments brought in temporarily by the previous Government have now stopped.

Poverty

Ms Davies added: “Rural areas of Wales, such as Carmarthenshire, face both higher heating costs and greater levels of fuel poverty. Last year’s figures revealed that 68% of households in Carmarthenshire were living in homes with poor energy efficiency, a problem compounded by the fact that many rural properties are not connected to the gas grid and must rely on more expensive heat sources.

“Farming families, already grappling with the challenges of rural poverty, will be especially hard hit by rising energy costs, as they struggle to maintain their livelihoods while coping with these additional financial pressures.

“The Labour UK Government sadly seems to be out of touch with the reality faced by rural households.”

Economic crash

Earlier this week, Commons Leader Lucy Powell said The UK could have faced a run on the pound and an economic crash if Rachel Reeves had not axed winter fuel payments to fill a black hole in the public finances.

Ms Reeves and Prime Minister Sir Keir Starmer have faced mounting criticism from opponents, campaigners and some of their own MPs over the decision to means-test the fuel payments.

But Ms Powell said there was “no alternative” and the decision was needed to avoid an economic catastrophe.

“This is one of those very difficult decisions we had to take,” she told Times Radio.

“But we have faced this huge additional black hole for this current financial year, borrowing higher than anybody understood.

“If we hadn’t taken some of these tough decisions we could have seen a run on the pound, interest rates going up and crashing the economy.

“It’s something we were left with no alternative but to do.”