The NPC is shocked by the government’s admission that winter fuel payment cuts could force an extra 100,000 older people in England and Wales into fuel poverty.
Internal government analysis shows the removal of the payments – aimed at helping with high energy bills - will push about 50,000 more into relative poverty next year, and another 50,000 by the end of the decade.
The information was published in a letter* this week from Liz Kendall, the Work and Pensions Secretary to the House of Commons Work and Pensions Committee - just as temperatures plunged below zero and the first snow fell across the country.
Commenting on the news, Jan Shortt, the NPC General Secretary said: “The NPC is gravely concerned by the figures provided by Liz Kendall, Secretary of State for Work and Pensions on the level of expected poverty as a result of the loss of the winter fuel payment for all bar those on pension credit.
“We find it completely unacceptable that an extra 50,000 to 100,000 older people will fall into poverty as a result of the decision to means-test the winter fuel payment. The message to older people is that the government is happy to accept them as collateral damage caused by their policy decisions.
“The Government must know these older people are not the ‘broadest shoulders’ they keep saying must pay to fix the economic deficit.
“Older people have the right to live in dignity and financial security in their later years - not have it swept away on the excuse that an economic 'hole' needs to be filled. If this is how the government treats its older generation, then we seriously question their integrity, compassion and moral judgement.”
“Government must know older people are not the ‘broadest shoulders’ to fix the economic deficit”
Jan says the loss of the winter fuel payment goes beyond struggling with ever increasing energy bills whilst suppliers still rake in billions in profits. It means critical choices, heat, eat, pay for care, pay another bill, attend social gatherings that support physical, emotional and mental well-being.
She added: “We challenge the government to come clean about the actual extent of poverty among older and disabled people. Other defining factors are the freeze on the tax threshold meaning workers and older people are receiving in one hand and paying out with the other. The myth that the triple lock rise in April will compensate for the loss of the winter fuel payment shows the lack of respect for the older generation. Increases in energy prices, the budget policies of allowing social landlords to hike up rents, the interest rates on mortgages, the inevitable rise in council tax, water and broadband bills adds to the concern that on a fixed income, many older and more disabled people will quickly fall into poverty. We need the WFP reversed. Urgently.
“As for the government saying they are extending pension credit uptake so more older people qualify for the winter fuel payment – they don’t have enough DWP staff to deal with the influx of applications as it stands. Processing delays will push back decisions by 10 weeks, into spring.”
*Letter from DWP Secretary Liz Kendall:
Energy consultancy Cornwall Insight has said it expects regulator Ofgem to reveal on Friday that the price cap will rise by 1% to £1,736 on 1st January 2025 – a predicted £19 jump to the typical household's energy bill. From 1st October 2024, bills increased by around 10% to an average of £1,717. Energy bills remain at levels 65% above winter 2020/21
ENDS
Download the press release
Liz Kendall letter