The Department for Work and Pensions (DWP) has admitted Winter Fuel Payment cuts will plunge tens of thousands of pensioners into poverty in the coming years.
According to the DWP’s own modelling, around 50,000 more pensioners will be pushed into absolute poverty each year from 2024/25 to 2029/30 as a result of the winter fuel payment cuts.
These pensioners are also included in the ‘relative poverty’ estimates.
Work and Pensions Secretary Liz Kendall revealed the Government’s assessment of the impact in a letter to MPs, but stressed the figures did not take into account plans to increase the numbers on pension credit.
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She told the Work and Pensions Committee: “The latest modelling shows that compared to the numbers that would have been in poverty without this policy, it is estimated that in each year in question there will be an additional 50,000 pensioners in relative poverty after housing costs in 2024-25, 2025-26 and 2027-28, instead.
“The modelling also shows that an additional 100,000 pensioners are estimated to be in relative poverty after housing costs in 2026-27, 2028-29 and 2029-30.”
Households in relative poverty have less than 60% of average (median) income in the current year.
The number of additional pensioners in absolute poverty – compared to the median in 2010/11 – is estimated to be 50,000 in each year.
Ms Kendall said the Labour Government had been “forced” to limit the payment due to the “£22 billion black hole” it blamed the Conservatives for leaving behind.
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In her letter, she wrote: “Means-testing winter fuel payments was not a decision this Government wanted or expected to take. However, we were forced to take difficult decisions to balance the books in light of the £22 billion black hole we inherited.
“Given the dire state of the public finances, it’s right that we target support to those who need it most while we continue our work to fix the foundations and stabilise the economy – which is the best way to support pensioners in the long term and is what has allowed us to deliver our commitment to the triple lock.”
She said the “modelling does not take into account any impacts of the measures we are taking to increase pension credit take-up and to ensure pensioners get the benefits to which they are entitled”.
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