More than 2.5 million pensioners who have been stripped of their Winter Fuel Payments struggle by on an income below the standard required for a dignified standard of living, new research suggests.

New analysis by the Centre for Ageing Better claims that one in four (25%) people aged 65 and over are considered too wealthy for Government support with energy bills but too poor to live a dignified life, based on the Minimum Income Standard (MIS) set by poverty experts and the public.

This rises to 29% for those aged 74 and over, equating to over 1.4 million older people. These individuals earn above the Pension Credit threshold and are no longer eligible for Winter Fuel Payments, yet fall below the MIS.

The MIS outlines the income needed to live with dignity, covering essentials such as living in a one-bed social housing flat (or a two-bed if in a couple), adequately heating the home, and taking one coach holiday per year.

Currently, the Minimum Income Standard is £17,200 for a single pensioner and £27,800 for a couple.

These amounts are significantly higher than the Pension Credit and Winter Fuel Payment thresholds, which are £11,344 for a single pensioner and £17,313 for a couple.

The new Centre for Ageing Better analysis also said the removal of the Winter Fuel Payment will disproportionately impact low-income pensioners who:

• Rent
• Have a limiting health condition or disability
• Live in Yorkshire and the Humber.

Holly Holder, deputy director for homes at the Centre for Ageing Better, said: “Our research provides further evidence that there are hundreds of thousands of pensioners who will suffer the consequences of the decision to limit Winter Fuel Payments to only those on extremely low incomes eligible for Pension Credit or other benefits.

“The pensioners identified in our research were already living on inadequate incomes before their Winter Fuel Payments were taken from them. The majority of these people will not be able to afford to heat their homes to a safe level this Christmas or for the rest of the winter. Their health will likely suffer as a consequence.

“While we accept there is a case to be made for removing this universal right from pensioners who don’t need a Winter Fuel Payment, this new research shows that the Government is also removing support from people who desperately need it.”

Ms Holder added: “We fear what will happen to them now it is no longer available.”

The new data analysis suggests the proportion of pensioners with incomes below MIS but not eligible for Winter Fuel Payments is considerably higher in Yorkshire and the Humber (37%) compared to the South East (21%) and South West (21%).

Pensioners who rent (33%) are also considerably more likely to fall into this income bracket than those who own their home, either outright (25%) or with a mortgage (19%).

However, more than two million older homeowners (outright or with a mortgage) fall into this income bracket, compared to just under 500,000 older renters. This reflects the higher prevalence of homeownership among older people.

Around one in four pensioners (24%) with an income above Pension Credit eligibility but below MIS already have a limiting health condition or disability, which could be exacerbated if they cannot afford to keep their home temperature at a healthy level.

The research also suggests that pensioners earning above the Pension Credit threshold but below the MIS level are more likely to face housing issues, such as homes in disrepair or with ineffective heating or insulation, making them harder to keep warm. Nearly 90,000 older people live in homes with five or more such problems.

The Centre for Ageing Better launched the Safe Homes Now campaign, which calls for urgent action to improve the safety and quality of existing homes by increasing the support and advice around home improvement.

Dr Carole Easton OBE, chief executive at the Centre for Ageing Better, said: “We know that the Winter Fuel Payment system was only ever a sticky plaster solution for our poor-quality housing crisis. It offered respite but not a solution to the fact that less than half of homes headed by someone aged 75 and over are energy efficient – rated within EPC bands A to C.

“But in removing the support so quickly, and in removing support from a significant number of low-income pensioners already in financial distress, the Government has created an avoidable crisis. Now they must respond by increasing the ambition of their long-term solution, and the speed of its delivery.

“We need a national strategy to fix cold and dangerous homes across all tenures. This would not only help save people money on their energy bills but significantly reduce pressures on the NHS by limiting the damage poor quality homes do to their occupants’ health.

“This national strategy must be backed by sufficient, long-term funding and include a mechanism for delivery at the local level, such as Good Home Hubs, which would allow people to access trustworthy support to guide their home improvements.”