The National Pensioners’ Convention is calling on Chancellor Rachel Reeves to reconsider her shock decision to end universal winter fuel payments.

The move will hit millions of older people who are just above the income threshold to qualify for pension credit – effectively imposing a harsh means test on those already struggling next winter.

NPC General Secretary Jan Shortt said: “This is devastating news for millions of older people whose income is literally just a few pounds above the threshold to receive pension credit. 

“These people are already barely able to make ends meet – this move effectively wipes out any benefit they receive from the triple lock increase on the state pension.

“I seriously believe the Chancellor has underestimated the harm her decision will cause to older people still struggling with energy costs, and facing higher rates in October.  It is absolutely shocking that the new Labour government should treat older, vulnerable people in this manner.  The triple lock alone will not enable them to keep up with energy bills.”

Director of Age UK Caroline Abrahams agreed, saying the charity “strongly opposes” the policy change which it said could result in more older people having to choose between ‘eating or heating’. “Our initial estimate is that as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in trouble as a result – yet at the other end of the spectrum well-off older people will scarcely notice the difference – a social injustice,” she said.

Jonathan Bean from the Fuel Poverty Action campaign group called it a “cruel and reckless move” that will “cause widespread suffering” and increase NHS admissions in winter. 

Just three months ago, Keir Starmer, then Leader of the Opposition, asked at Prime Minister’s Questions: “Last year the PM was apparently drawing up plans to remove the winter fuel allowance from pensioners… will he now rule out taking pensioners winter fuel payments off them to help fund his… black hole?” But that is exactly what his own Chancellor is about to do.

Lord Prem Sikka estimates there are 800,000 pensioners on low incomes – under £218.25 a week for single pensioners, £332.95 for couples –  who miss out on Pension Credit and won’t now get the winter fuel payment.

He tweeted: “Worrying: Almost the first act of the new government – keep the two-child benefit cap, cut winter fuel payment. Alternatives – windfall tax on energy, internet, banks, energy companies; tax capital gains, dividends at same rate as wages, wealth tax.”

Owen Jones tweeted: “Around 30% of pensioners eligible for pension credit aren’t receiving it. They are financially struggling pensioners not getting the help they need. That’s what means testing does.” Now they will also lose their winter fuel payments.

And Phil Burton-Cartledge added: “The introduction of a means test will put more off claiming, regardless of whatever Liz Kendall-designed initiative is launched to encourage take-up.”

More broadly, the Chancellor’s comparison of the country’s finances to a household budget whose books must be balanced has dismayed many experts as economic illiteracy. Reeves’ announced cuts to infrastructural projects – including much-needed hospital building – are not only damaging in themselves: they will further limit the prospects of economic growth.

As Grace Blakeley pointes out: “Rachel Reeves’ plans to slash public spending and investment on the basis that Britain is ‘broke’ is a rehash of the exact rhetoric that gave us 14 years of Tory austerity.”

In 2013 Reeves caused controversy when she announced that Labour in power would be tougher than the Tories in slashing the benefits bill. With the attack on winter fuel payments and last week’s retention of the two-child benefit cap, she may be on the way to fulfilling her wish.

There is a fairer way to fix the hole in the public finances, which many warned about but which Rachel Reeves claims to have been shocked by, and that is taxes on the wealthy. Some say the Chancellor will have to bow to the inevitable on that in her October budget – but we should meanwhile step up the campaign for a wealth tax just to be sure!

Image:https://commons.wikimedia.org/wiki/File:Rachel_Reeves,_Keir_Starmer_and_Angela_Rayner.jpg Rachel Reeves, Keir Starmer and Angela Rayner. Source: UK Parliament. Author: © UK Parliament / Maria Unger,  licensed under the Creative Commons Attribution 3.0 Unported license.