The Government has announced they are restricting those who can claim Winter Fuel Payments, meaning many pensioners will be left being unable to afford heating.
Chancellor Rachel Reeves reluctantly made the decision after claiming more difficult decisions are yet to come after claims Labour have inherited a £22 billion "black hole" in public finance expenditure from the Conservatives.
The decision has brought concerns with experts predicting energy price rises are set to be announced later this year, leaving many pensioners struggling to heat their homes.
Who will no longer be able to claim Winter Fuel Payments?
Rachel Reeves has announced Winter Fuel Payments will be cut this year for many residents, leaving them for only the most vulnerable.
Reeves announces that the new government must make "incredibly tough choices," including stopping the winter fuel payment of £250 to £600 for those not receiving pension credit or other means-tested benefits.
Previously you could qualify for the payment if you were born before 25 September 1957 or lived in the UK for at least one day from 18 to 24 September 2023.
Why have Winter Fuel Payments been cut?
Reeves made the announcement as she has inherited a £22 billion "black hole" in public finances from the Conservatives.
She said the decision to remove Winter Fuel Payments was not one she wanted to make but claimed the move would save the government £1.5 billion a year.
She claimed: "We needed to find in-year savings and this saves £1.5bn a year.”
In 2023-24, government spending on the state pension, pension credit and Winter Fuel Payment's was projected to be £132 billion, or 5.1% of national income.
Jeremy Hunt claims decision was 'shameless'
Shadow Chancellor Jeremy Hunt said the decision was "shameless" and queried her figures when referring to the £22 billion "black hole" in public finances.
He said the claim was "spurious" as he stated: “The state of public finances were apparent pre-election to anyone who would care to look. Those public finances were audited... just 10 weeks before the election was called.”
He also accused the new Chancellor's speech of being politically motivated, further adding that the Budget, which was set to be announced on October 30th, will be the "biggest betrayal in history by a new chancellor".
Martin Lewis claims Winter Fuel Payments now targeting 'too narrow a gap'
Martin Lewis, broadcaster and founder of MoneySavingExpert.com, wrote a formal statement to Rachel Reeves claiming that only giving Winter Fuel Payments to pensioners on benefits is "too narrow a gap" claiming "those just above the thresholds will be hardest hit".
His statement said: "The targeting of Winter Fuel Payments is too narrow with the winter we have coming. Pensioners were already due to get less as this will be the first time since winter 2022 they haven’t got the up to £300 extra winter fuel cost of living top-up.
"The Energy Price Cap is likely to rise 10% this October and stay high across the winter, leaving most energy bills nearly double those pre-crisis, at levels unaffordable for millions.
"Many pensioners eke out the £100 to £300 Winter Fuel Payments to allow them to keep some heating on through the cold months. While there's an argument for ending its universality due to tight national finances, it's being squeezed to too narrow a group – just those on benefits and Pension Credit."
He added the Labour Government "has a huge moral imperative to ensure the 800,000 people eligible for Pension Credit who don't get it, are informed, educated and helped through the process" as this is "a crucial gateway benefit" for those who will no longer be able to claim Winter Fuel Payments.
