Analysis reveals that the savings made by the UK government from means-testing the winter fuel payment are being largely offset by increased pension credit claims and other benefits uptake. The move, criticized by Labour and pensioner groups, is raising questions about its political and financial value.
Experts said the figures raise questions about whether the political capital used by Labour on the winter fuel cut will have been worth it. The savings Rachel Reeves made by cutting the universal winter fuel payment are being eaten into by pension credit claims and other benefits, new analysis shows. The Chancellor claimed the government would be saving £1.4bn a year by means testing the winter fuel payment to help fund the £22bn “black hole” in the public finances.
But the latest figures show the money ministers are spending on increased pension credit claims due to the cut, as well as an uptake in other benefits to soften the blow of the policy, is beginning to cancel out those savings. Experts said the figures raise questions over whether the political capital used up by Labour on the controversial winter fuel cut, including anger from the party’s own MPs, pensioner groups and voters, will have been worth it. It has also emerged that dozens of councils are using their own resources from the household support fund, designed for people of all ages for help with bills, to help support pensioners who have just missed out on the winter fuel allowance this year. The analysis emerged as temperatures plunged across the country at the weekend and the UK Health Security Agency issued a cold weather alert, with Health Secretary Wes Streeting urging pensioners to turn up the heating. When the cut was originally announced last July, the Treasury budgeted for an additional 95,000 people claiming pension credit in order to qualify for the winter fuel allowance, at a cost to the government of £370.5m. But analysis by Policy in Practice shows that, while there have been only 57,000 extra pension credit claims, the total cost to the Treasury of funding them along with paying for “passported benefits” that these new claimants now qualify for, such as council tax support and housing benefit, is likely to be £388
WINTER FUEL PAYMENT LABOUR PARTY PENSION CREDIT BENEFITS PUBLIC FINANCES
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