Withdrawal of a lifeline for pensioners. Rachel Reeves, the Chancellor, announced alongside the continuance of the two child benefit cap that she would end winter fuel payments for 10 million pensioners.
Winter Fuel Payments for those born before 23 rd September 1958 of either £200 or £300 will not now be paid except to those who get certain benefits such as Pension Credit. But the criteria for claiming pension credit is restrictive. This cut will affect millions of pensioners who are just above the threshold to qualify for pension credit.
Pat McFadden the Cabinet Office Minister said that the winter fuel cut won’t be the last tough decision that we have to make in government.
McFadden defended the decision to cut the Winter Fuel Allowance saying that the pension credit and triple lock should help mitigate the pain. But the Cabinet Office Minister ignores the impact of the freeze on the tax threshold until at least 2028. This will mean that pension credit nor the triple lock will help ease the pain.
3.1 million, or 1 in 5, pensioners will be paying higher or additional rate tax by 2027/28 tax year due to the governments frozen income tax thresholds. Although the Chancellor forecasts there will be no income tax rises in the forthcoming Budget the freezing of this tax threshold will be a tax increase by stealth.
With Britain having the lowest state pension in Europe, over 2 million pensioners live in poverty.
Age UK has seen a 40% increase in calls to it's help line. The charity has said that the loss of the Winter Fuel Payment could prove fatal for some vulnerable and elderly individuals.
The energy price cap is also due to rise by 10% from 1 October meaning the average energy bill will rise by £149. Pensioners this winter will have to choose between eating or heating.
Rachel Reeves said she has discovered a £22 billion black hole but Sharon Graham, General Secretary of Unite, has called for a 1% wealth tax to be applied on the assets of those worth more than £4m. She says this represents £25 billion a year in income.
Workers and Pensioners need to jointly campaign against this cut to the Winter Fuel Allowance. You can get involved in the campaign in several ways. An Age UK petition already has already over 450,000 signatures.
The National Pensioners Convention is calling on Trade Unions to lobby parliament on 30 October the day before the Budget and Unite the Union have also launched a campaign.
August 2024