Seven out of ten disabled pensioners will lose their winter fuel payments under the cuts planned by Keir Starmer and Rachel Reeves, new government documents reveal_l
Seven out of ten disabled pensioners are set to lose their winter fuel payments under the cuts planned by Keir Starmer and Rachel Reeves, according to newly-published government documents.
An estimated 71 per cent of the 1.6 million disabled people who currently receive the benefit will lose out under the Labour policy to strip the payment from millions of pensioners in England and Wales.
The changes mean that households will only be entitled to the payment if they receive Pension Credit of certain other means-tested benefits.
An equity assessment published by the Department for Work and Pensions on Friday night stated: ‘Around 71 per cent (1.6m) of people with a disability will lose entitlement’.
According to the assessment, the figures are based on data from May 2023 which considers those who received the State Pension and if they received a pensioner disability benefit such as Attendance Allowance (AA) Disability Living Allowance (DLA) or Personal Independence Payment (PIP).
The DWP said the figures are based on ‘equality analyses’ which ‘are not impact assessments and not routinely published alongside secondary legislation’.
The changes mean that households will only be entitled to the payment if they receive Pension Credit of certain other means-tested benefits
Chancellor Rachel Reeves has insisted it is ‘absolutely right’ to means-test the benefit in order to address the ‘black hole’ in the public finances
It is estimated around 71 per cent of people with a disability will lose their entitlement
Couples are also likely to face losing out as opposed to people living alone
The document states those affected by this policy will ‘greatly outnumber those unaffected’
The assessment reads: ‘We do not have published information relating to disability of WFP (Winter Fuel Payment) recipients. However, as a proxy we can look at those in receipt of the State Pension (as almost all of those on State Pension receive a WFP) and whether or not they received a pensioner disability benefit [including] AA, DLA [and/or] PIP.’
The assessment states those with a disability will be ‘disproportionately likely to retain’ the payment but admits 71 per cent will lose their entitlement.
In addition, 2.7million people (83 per cent) aged 80 and over, and 7.3million people (90 per cent) aged between 66 and 79 are expected to also lose their entitlement.
‘Although a smaller proportion of those aged 80+ will lose out than those under 80, due to the higher rate of WFP from that age, older pensioners who are affected will be proportionally worse off financially as a consequence of the policy’, the document states.
About 4.5million of those who will lose out live alone while 5.5million people in a couple are also set to be impacted.
The assessment concludes that couples are most likely to be affected by the policy, and men are marginally more likely to be impacted than women ‘because these groups are less likely to be on the lowest incomes’.
‘However, across all assessed characteristics those affected by this policy greatly outnumber those unaffected’, the document concludes.
The document also states the policy will ‘reduce the numbed entitled from around 12million to 1.7million in the first year… No transitional protection is assumed. The rationale would be to focus support on those pensioners with the lowest incomes.
Seven out of ten disabled pensioners are set to lose their winter fuel payments under the cuts planned by Keir Starmer
‘It would be important to continue to promote take-up of pension credit in this context, since the main criticism of Government in this respect is that one third of eligible households do not claim it.’
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Labour MPs face winter fuel backlash as Rachel Reeves rejects calls to ease the blow for pensioners
The measure is part of a package of measures announced by the Labour government aimed at making immediate savings in public spending.
Chancellor Rachel Reeves has insisted it is ‘absolutely right’ to means-test the benefit in order to address the ‘black hole’ in the public finances.
The change is expected to save the Exchequer around £1.3billion in 2024/25 and £1.5billion in subsequent years.
It comes after the Prime Minister admitted his Government had not carried out an assessment of the risks of taking the payments away from an estimated 10million pensioners.
The Prime Minister insisted there was no ‘report on my desk’ despite widespread warnings – including by Labour when in opposition – that the deeply unpopular move could lead to thousands of elderly people dying.
He was asked by reporters as he travelled to Washington if he could produce the impact assessment, a type of report usually carried out by civil servants on the potential risks and benefits of major policy decisions, on the controversial means-testing of energy bill subsidies.
The PM said the impact would be mitigated by low-income pensioners receiving pension credit but admitted: ‘There isn’t a report on my desk which somehow we’re not showing.’
Told that legally the Government had to carry an impact assessment out, Sir Keir said that was ‘not actually true’.
Prime Minister Keir Starmer laughs as he speaks to journalists on board a flight to Washington DC last night
The PM added: ‘I know you think there’s a report on my desk but there isn’t one.’
No 10 has said there is no obligation for departments to carry out impact assessments of policies that cost less than £10million to implement.
The DWP said: ‘The Government has followed its legal and statutory duties ahead of introducing these changes and will continue to do so.’
A Downing Street spokeswoman said some statistical work had been done, but nothing on what impact the change might have on vulnerable pensioners.
‘There are clear rules on this that we followed carefully and, for policy changes implemented through secondary legislation, like the change to winter fuel payment eligibility, departments are required to make regulatory impact assessments if the cost of the legislation exceeds £10million and so an assessment was therefore not required for the change to winter fuel eligibility.
Asked whether an assessment should have been done to work out whether elderly people might die as a result of the change, the spokeswoman said: ‘The Government will be ensuring that those who are most vulnerable and should be receiving support are receiving it, and that’s why there is a huge effort to try and convert people onto pension credit.
‘And also, we want people to be applying for the wider support, which is also there for the most vulnerable.
‘Our approach is to ensure that those most vulnerable are receiving targeted support, and we’ve had to take that tough decision to rebalance the books, given the state of the public finances.’
The revelations have reignited a row over the policy, which has been criticised by both unions and the Conservative Party.
Conservative Party chairman Richard Fuller said: ‘At the start of this week, Labour MPs marched through the lobbies to cover up the impact of the winter fuel cuts which will slash support for many pensioners in their own constituencies.
‘This shocking new data, sneaked out by the Government, now shows 780,000 people who should be entitled to the payment will lose out as will 1.6million people with a disability.’
He called on Labour to ‘immediately’ conduct and publish a full impact assessment of ‘this harmful policy’.
Sir Steve Webb, a former pensions minister, told the Telegraph it was ‘shocking that this impact assessment has appeared late on a Friday evening’.
‘The Treasury confirms our analysis that those who miss out on pension credit or are just a few pounds above the cut-off are likely to be significantly negatively affected. This information should have been in front of MPs when they decided whether to support the policy’, he said.
It comes after newly elected Labour MP Peter Lamb was lambasted over ‘abhorrent’ claims pensioners losing their payment have a ‘choice’ whether to put the heating on.
Newly elected Crawley MP Peter Lamb said anyone who needs the payment to afford heating will still get it as he defended axing the subsidy
A Labour MP was lambasted last night over ‘abhorrent’ claims pensioners losing their winter fuel allowance have a ‘choice’ whether to put the heating on (stock image)
The Crawley MP, who joined Labour MPs in voting to axe the subsidy earlier this week, said anyone who needs the payment to afford heating will still get it as he defended his decision.
He posted on X, formerly known as Twitter, ‘If people choose not to put the heating on after several above-inflation increases in the state pension then that’s their choice’.
He added: ‘Anyone who genuinely needs the payment to afford it will still get it. Overall, pensioners will benefit more from NHS capacity than extra cash.’
Ms Reeves announced the cut to the payments in July in a bid to fill what she calls a £22billion ‘black hole’ in the public finances.
A government spokesperson told the Telegraph: ‘Our focus is on ensuring that those who should be claiming this support are receiving it alongside the wider support for vulnerable households, including the warm homes discount worth £150 and household support fund to help people with the cost of living and energy bills.
‘Over a million pensioners will continue to receive the winter fuel payment and through our commitment to protect the triple lock, those on the full new state pension will receive an extra £400 – twice the average winter fuel payment.’
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