The anger attributable to Labour scrapping the common winter gas cost earlier this 12 months has been properly publicised – however a much less talked about reduce to the profit has been going down yearly since 2000.
About 1.3 million folks in England and Wales who’re entitled to sure means-tested advantages can get both £200 or £300, down from greater than 11 million beforehand.
These quantities haven’t modified in additional than twenty years, regardless of durations of sky-high inflation, and power costs rising exponentially lately.
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If it had risen in keeping with power costs, it might be value nearly £1,000 now, and would’ve paid out greater than £1,200 throughout the peak of the power value disaster within the winter of 2022-23.
The cost for the over 80s was raised to £300 in April 2003. If that had risen with inflation since then it might be value greater than £500 now.
If it had risen by the identical as power costs, it might be value greater than £1,200 now, and would’ve topped £2,000 in 2022-23.
This vital, annual real-terms reduce has, over the previous 13 years, coincided with pensions rising in actual phrases because of the triple lock – doubtlessly offsetting some penalties of freezing the cost.
However charities who spoke to Cash say weak pensioners are struggling because of the cost’s stagnation.
Caroline Abrahams, charity director at Age UK, mentioned: “Energy prices are much higher than they were a few years ago, and yet the winter fuel payment which was designed to support pensioners in meeting these costs has remained the same.
“Most not too long ago, in fact, the present authorities has determined to brutally ration entry to the cost, the primary qualification for it now being that you’re in receipt of pension credit score.
“The lack of commitment to winter fuel payment by governments of all colours arguably reflects a lack of insight in Whitehall about the difficulties older people on low and modest incomes face in making their money stretch to cover the basics, especially during the colder months when they need to stay warm to protect their health.”
Incapacity Rights UK pointed to a report this week that estimated 10,400 terminally ailing folks die in poverty annually.
It’s due to this fact “astounding”, the charity says, that the winter gas cost hasn’t been raised in a long time.
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File pic: PA
Coverage and campaigns officer Dan White mentioned: “Energy bills are rising, energy companies are recording huge profits, poverty is increasing, so there is ample proof that the current winter fuel payment is out of touch with the financial reality of disabled pensioners’ lives.
“A rise isn’t just justified, it’s crucial, and we’d like an power social tariff focused at these going through excessive power prices, together with disabled and older folks. If authorities fails to behave accordingly, there will probably be a humanitarian disaster on our doorstep.”
We asked the government if raising the winter fuel payment was something it would look at. The Department for Work and Pensions told us:
“We’re dedicated to supporting pensioners – with thousands and thousands set to see their state pension rise by as much as £1,700 this parliament by means of our dedication to the triple lock.
“Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take up has already seen a 152% increase in claims.
“Many others may also profit from the £150 heat dwelling low cost to assist with power payments over winter whereas our extension of the family assist fund will assist with the price of meals, heating and payments.”
