New government measures could push many pensioners into poverty this winter, sparking outrage and calls for action from opposition parties.
London: The government’s recent changes to winter fuel payments are raising eyebrows. They estimate that around 100,000 pensioners could fall into poverty by 2026. This is all part of Chancellor Rachel Reeves’ plan to tighten the budget.
Starting this winter, only those on pension credit will get the winter fuel payment, which can be as much as £300. The government hopes to save £1.5 billion a year with this move. But, of course, it’s not sitting well with many campaigners and opposition parties.
Sir Keir Starmer, leader of the Labour Party, argues that seniors will still be “better off” because of an increase in the state pension. Meanwhile, Work and Pensions Secretary Liz Kendall has shared the government’s impact assessment, saying it doesn’t account for the expected rise in pension credit claimants.
In a recent meeting, she mentioned that the new policy could lead to an extra 50,000 pensioners living in relative poverty each year. That’s a pretty alarming figure, right? Households in relative poverty are those making less than 60% of the average income.
Kendall explained that the Labour government had to make tough choices due to a £22 billion deficit left by the previous Conservative government. She emphasized that they want to help those most in need while trying to stabilize the economy.
Sir Keir, speaking at the G20 Summit, pointed out that the figures don’t consider other support measures like the household support fund. He believes that pensioners will benefit from the upcoming increase in state pensions, which is expected to be around £470 next year.
Debbie Abrahams, chair of the Work and Pensions Committee, raised concerns about how this will affect older and disabled pensioners. She’s worried about those just above the poverty line, too.
Helen Whately, the shadow work and pensions secretary, criticized the cuts, saying they will push many pensioners into poverty. She believes that Keir Starmer is making a political point at the expense of vulnerable seniors.
Daisy Cooper from the Liberal Democrats called for immediate action to reverse the cuts. The Scottish Labour Party has promised to restore the winter fuel payment if they win the next election, aiming to ensure that all pensioners receive support.
Age UK has also voiced its concerns, stating that limiting the winter fuel payment will only increase the number of pensioners living in poverty. They’re urging older people to claim pension credit before the deadline.
Independent Age described the situation as “extremely alarming” and is calling for the government to rethink its approach. They’ve heard distressing stories of older folks struggling to stay warm, which highlights the real impact of these policy changes.
It’s a tough situation, and many are hoping the government will reconsider its stance before it’s too late.