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Thousands of pensioners may get Winter Fuel Payments ‘too late’ as Labour plan backfires_l

Critics have argued the ministry has ‘not thought this through’ as thousands of pensioners may be left without essential funds as the cold season starts.

UK Chancellor Of The Exchequer Rachel Reeves Interview

Rachel Reeves (Image: Getty)

Thousands of pensioners could experience significant delays in receiving their winter fuel payments due to a surge in benefit applications, following Labour’s recent policy shift.

Charities are sounding the alarm, warning that these delays may leave pensioners without essential funds during the first cold spells of the season.

The delays stem from Labour’s decision, spearheaded by Rachel Reeves, to restrict winter fuel payments to only those pensioners who are already on means-tested benefits, affecting roughly 10 million retirees.

This change has triggered a spike in applications for pension credit, causing processing times to balloon from six to nine weeks, according to research by the End Fuel Poverty Coalition.

While the Government has assured pensioners that they can backdate claims until December, there is growing concern that the payments might not be processed in time to provide much-needed relief before winter sets in, The Telegraph has reported.

Simon Francis of the End Fuel Poverty Coalition said: “It’s clear ministers have not thought this through. When the Chancellor cruelly snatched away the winter fuel payment from millions of pensioners, she promised to help households who are eligible to claim the benefit.

“But as it takes so long to process new claims, even those applying now may be forced into a back-dating procedure, which will delay payments.”

Caroline Abrahams, charity director at Age UK, echoed these concerns, sharing an example of a pensioner who applied a month ago and has been told they may not see any money until mid-September.

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She said: “We know that there are quite significant delays in the processing of claims, meaning that older people may not receive any money until after the cold weather has set in.”

“A woman I spoke to this week from London submitted a claim about a month ago and after following it up had been told she was unlikely to hear the outcome until mid September.

“These delays mean that pensioners who are very short of cash and who submit a claim now may well have to bridge quite a gap before their pension credit and winter fuel payment finally come through.”

The move to limit winter fuel payments is part of Labour’s effort to address a so-called £22 billion fiscal shortfall, a legacy they attribute to the previous Conservative government. Despite this, the decision has been met with backlash, with critics arguing that the cuts could leave vulnerable pensioners at risk.

Energy bills are projected to rise by nine percent in October, according to Cornwall Insight, and while this is lower than last year’s costs, the removal of winter fuel payments could mean that pensioners are the only group to see an increase in their bills.

As the government encourages more pensioners to apply for pension credit, Jonathan Bean of the Fuel Poverty Action group pointed out the confusion and fear this policy change has caused among older citizens.

He said: “Left caught up in the chaos are older people who will be left fearful of the winter ahead. Many will be unsure if they will get the winter fuel payment

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 or not and delays to payments will only add to the misery.

“If ministers think that a communications campaign to encourage take-up of pension credit is any substitute for actual help with energy bills this winter, then they are very much mistaken.”

With nearly 900,000 eligible pensioners not currently claiming pension credit, there is concern that the surge in applications could lead to a larger-than-expected benefits bill, potentially wiping out any savings Labour hoped to achieve with the cuts. Former pensions minister Sir Steve Webb warned that the influx of claims could cost the Treasury up to £490 million.

The Department for Work and Pensions (DWP) has urged all eligible pensioners to apply for pension credit.

They said: “We urge anyone who thinks they may be entitled to pension credit to check. We said we would be honest with the public and, given the dire state of the public finances we have inherited, this government must take difficult decisions to fix the foundations of the economy.

“This includes reforming winter fuel payments so they are targeted at those most in need and leaving no stone unturned to encourage eligible pensioners to take up pension credit.”

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