An additional 50,000 pensioners will live in relative poverty next year due to cuts to the winter fuel allowance, the government's own estimates have revealed.
Earlier this year, Chancellor Rachel Reeves announced that the £300 payment would be limited to all pensioners except the poorest pensioners – those eligible for Pension Credit.
In a bid to soften the impact of the cuts, the government has launched a campaign to encourage eligible retirees to claim pension credit.
In a letter clarifying the figures, Work and Pensions Secretary Liz Kendall said the estimates did not take into account a possible increase in the use of Pension Credit.
According to estimates provided by the Government, in the years ending March 2025, March 2026 and March 2028, an additional 50,000 pensioners will be in relative poverty after housing costs.
In the years ending March 2027, March 2029 and March 2030, an additional 100,000 retirees would be left in relative poverty after housing costs.
Annual figures are rounded to the nearest 50,000. Kendall said this meant that “small variations in the underlying figures involved can lead to much larger changes in the rounded figures”.
The cumulative total over the years does not necessarily refer to individual retirees, who could move in and out of relative poverty over time depending on their personal circumstances.
Currently, the government estimates that 1.9 million pensioners – or around 15% – are in relative poverty.
The new estimates, released on Tuesday, suggest that cuts to winter fuel payments would increase pensioner poverty by 0.5 percentage points.
A person is considered to be living in relative poverty if they have less than 60% of the median income.
In his letter, Kendall said the Department for Work and Pensions had written to 120,000 pensioners to encourage them to claim the pension credit they may be entitled to.
She added that the decision to cut winter fuel payments was “not a decision this government wanted or expected to make”.
“However, we have been forced to make difficult decisions to balance the books, in light of the £22 billion black hole we have inherited.
“Given the dire state of public finances, it is right that we target support to those who need it most.”
Helen Whately, the Conservative shadow Labor and pensions secretary, said: “Finally the dam is breaking and we can see what Labor has always known.
“Their cuts to winter fuel payments will push 100,000 pensioners into poverty over the next few years.
“Obviously Keir Starmer thinks that's the price of making a political point. But I don't think these pensioners would agree with him.”
Daisy Cooper, Lib Dem Treasury spokeswoman, said: “While the Conservatives have undoubtedly left this government with a terrible budgetary legacy, that is no excuse for pushing more pensioners into poverty while the temperature drops. »
At a press conference in Brazil, where the Prime Minister is currently attending a G20 summit, Sir Keir Starmer was asked about the figures.
He said the state pension would rise by £470 in the spring and pensioners would be better off.
Earlier today, Scottish Labor leader Anas Sarwar distanced himself from Sir Keir by pledging to increase pension credit eligibility if he formed the next government.
