Loss of winter fuel payments is being criticized by charities as Budget confirms the axe

Pensioners will be ‘hard hit’ by the loss of winter fuel payments, experts say, as yesterday’s Budget confirmed the benefit would be lost for millions.

The government yesterday stuck to its plans to reduce the number of homes receiving the winter fuel payment from Chancellor Rachel Reeves’ budget.

Previously, the Winter Fuel Payment was paid to all pensioners. But these payments have now been reduced so that only those on benefits such as Pension Credit will receive them from this winter.

The Budget came and went without the Chancellor making any mention of reversing cuts to winter fuel payments.

In fact, budget documents show that the cuts will save the government £1.5 billion in the 2024 and 2025 tax years, then £1.6 billion in 2026, 2027 and 2028 and £1.7 billion in 2029.

The government’s commitment to abolish the benefit for most pensioners has been criticized by several charities.

Caroline Abrahams, charity director at Age UK, said: ‘Nothing in the Budget will change the fate of the four in five pensioners on low and modest incomes who will lose their winter fuel payment this year, when they simply cannot afford to do so . a huge disappointment.

‘The Government could have taken action to protect these elderly people but chose not to, despite compelling evidence showing how badly as many as two and a half million people in this position will be affected.

‘It will come to fruition if elderly people on a tight budget now have the best policy option: hoping and praying for a mild winter.’

Steve Vaid, chief executive of the charity Money Advice Trust, said: ‘We remain concerned about the impact of the abolition of the Winter Fuel Payment for pensioners lower down the income scale. And there was no help with energy arrears, which now amount to £3.7 billion.

‘Now that energy prices are so high, more and more people are at risk of falling behind. The Government and Ofgem should propose a Help to Repay scheme to reduce energy debt, and introduce a social energy tariff to reduce bills for those on the lowest incomes.”