Labour face 'bigger problems down the road' axing Winter Fuel Payments for millions of pensioners
The Labour Government continues to stir the pot as they announce changes that will cost millions of pensioners this winter
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The changes announced to the Winter Fuel Payment will inevitably create further problems for the Government, as millions of pensioners will be forced to tighten their belts with the loss of this payment.
Following the announcement by Rachel Reeves, millions of pensioners will now find they are not eligible for Winter Fuel Payments this year as the criteria has been altered.
The payment will now be means tested meaning only those on certain benefits such as Pension Credit will be eligible.
Despite the public outcry following the change, the Chancellor’s decision will free up some cash for other public services or projects that could give the economy a bit of a boost.
Although necessary to help the UK recover from the £20bn black hole left by the Conservative Government, this decision will only bring about social consequences.
Millions of pensioners will now be left feeling abandoned, especially those who are earning just above the allowance.
Reeves revealed a shake up to the winter fuel payment allowance that will affect millions of Britons
GETTYTsvetelina Nasteva, finance expert explained to GB News that this change in criteria will push millions of pensioners into poverty this winter, only creating further problems for the Labour Government.
She said: “Taking away these payments from millions of pensioners could force some into making tough choices between heating their homes or paying for basics like food.
“The result could be a spike in health issues among the elderly, which could end up costing the NHS even more in the long run.
“It feels like a short-term fix that might create bigger problems down the road.”
While it makes sense to give help to those who need it most, it also leaves out a lot of pensioners who don’t qualify for means-tested benefits but are still feeling the pinch.
With energy bills expected to keep climbing, the timing of this decision could add even more pressure on vulnerable people.
The Government will continue to face criticism for not doing enough to support those who are barely getting by during this cost-of-living crisis.
Their decision to means-test Winter Fuel Payments has really stirred the pot as what used to be a universal benefit that helped all pensioners keep warm during the winter will now only go to those on pension credit or other means-tested benefits.
Nasteva added: “Labour says they need to make this change to deal with the budget deficit left behind by the previous government, but a lot of pensioners are feeling abandoned, especially those who are just above the threshold and still struggling to get by.”
The Government has ruled out borrowing to rebalance the current budget, instead they said they will adjust it so “day-to-day costs are met by revenues”.
Scotland has also confirmed its own universal Winter Fuel Payment will be means-tested going forward.
Under previous plans, Scotland was preparing to have its own equivalent of the Winter Fuel Payment: the Pension Age Winter Heating Payment.
This would have replaced the UK-wide benefit with households potentially being eligible for the same level of support.