MPs to review pensioner poverty after winter fuel payment cut

22 November 2024, 14:48 | Updated: 22 November 2024, 16:40

MPs have launched a review into pensioner poverty after the government admitted the cut to winter fuel payments could force 100,000 people into poverty.

The government announced soon after winning the election in July that only elderly people in receipt of pension credits would receive help of up to £300 this winter, instead of every pensioner as before, with the aim of saving £1.5bn a year.

But figures released by the Department for Work and Pensions (DWP) this week found 100,000 extra pensioners could be in poverty by 2027 because of the decision.

As a result of those figures, the cross-party Work and Pensions Committee launched a review on Friday into the challenges and mitigations of pensioner poverty.

It will look into how pensioner poverty differs across the UK's regions and communities, how it affects different groups' lifespans and to what extent the state pension and other benefits for older people prevent poverty.

The review will look at the impact it has on the NHS, how pensioners in poverty manage food, energy and housing costs, and what measures help the most.

It will also consider how the take-up of pension credit can be improved.

Sir Keir Starmer remained steadfast in his decision to cut the payment, as he said there are many people currently getting the payment "who don't need it because they're relatively wealthy".

"I think most people would say that doesn't make sense, when you've got a really, really, difficult, tight budget," he told BBC Radio Merseyside on Friday.

"We've got to deliver for our NHS, for our schools, we've got to make sure that we've got public services that people can rely on, including, of course, pensioners.

"So it makes sense to make the change."

When broken down, the new figures project that 50,000 more pensioners could be in "relative poverty after housing costs" in the financial year ending 2025, a similar number the year after, and then 100,000 in the year ending 2027.

It then drops to 50,000 people in the financial year ending 2028, before going back up to 100,000 for the years ending 2029 and 2030.

Relative poverty measures individuals whose income is below 60% of median incomes.

Read more:
Pension credit claims soar as chancellor refuses to reverse cut
Scottish Labour leader 'right' to distance himself from winter fuel cut

Work and Pensions Secretary Liz Kendall, who disclosed the government's impact assessment to MPs, said the figures did not take into account plans to increase the number of people on pension credit.

Labour MP Debbie Abrahams, chair of the DWP committee, said: "We understand the rationale as part of the effort to restore the UK's finances, but it's concerning that potentially tens of thousands would sink below the poverty line without other kinds of support.

"Just one falling into it is a tragedy. It gives just a hint of how many pensioners could be struggling, but are we doing enough for them?

"We want to hear from experts and pensioners at the sharp end to examine the situation to inform the debate around the pensions review, and make some recommendations to government that will ensure people get the support they need."

(c) Sky News 2024: MPs to review pensioner poverty after winter fuel payment cut