More than 2.5 million pensioners who have lost their Winter Fuel Payments are struggling to live on incomes below the level needed for a dignified standard of living, a shocking new report has found.
The Centre for Ageing Better has found that one in four people aged 65 and over are caught in a challenging gap – deemed too wealthy for energy bill support but too poor to maintain a dignified life.
This situation is even more severe for those aged 74 and over, with 29 per cent of this age group falling into this category. This represents over 1.4 million older people who have incomes above the Pension Credit threshold, making them ineligible for Winter Fuel Payments.
As such, this falls below the Minimum Income Standard established by poverty experts. The Minimum Income Standard, which defines a dignified living level, currently stands at £17,200 for a single pensioner and £27,800 for a pensioner couple.
Notably, this is significantly higher than the threshold for Pension Credit and Winter Fuel Payment eligibility, which is set at £11,344 for single pensioners and £17,313 for couples.
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The Centre for Ageing Better has issued warning about the impact of the Winter Fuel Payment axe
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The standard covers basic dignified living requirements, including the ability to live in a one-bed social housing flat, take one coach holiday annually, and maintain adequate heating.
This gap between these thresholds means many pensioners are earning too much to receive support but too little to maintain the standard cost of living deemed dignified by public consensus.
Regional disparities show pensioners in Yorkshire and the Humber are particularly affected, with 37 per cent falling into this income gap. This is significantly higher than in the more affluent regions of the South East and South West, where only 21 per cent of state pensioners face this situation.
Some 33 per cent of pensioner renters fall into this income bracket compared to 25 per cent of outright homeowners. However, the total number of affected homeowners is substantially larger, with more than two million homeowners falling into this category compared to just under 500,000 renters.
Pensioners are distressed about recent changes to the Winter Fuel Payment allowance GETTY “The pensioners identified in our research were already living on inadequate incomes before their Winter Fuel Payments were taken from them,” says Holly Holder, Deputy Director for Homes at the Centre for Ageing Better.
“The majority of these people will not be able to afford to heat their homes to a safe level this Christmas or for the rest of the winter. Their health will likely suffer as a consequence.”
She added: “While we accept there is a case to be made for removing this universal right from pensioners who don’t need a Winter Fuel Payment, this new research shows that the Government is also removing support from people who desperately need it. We fear what will happen to them now it is no longer available.”
The analysis reveals that around one in four pensioners affected by the Winter Fuel Payment changes have a limiting health condition or disability. These health issues could worsen if they cannot maintain healthy temperatures in their homes, according to the think tank.
The situation is particularly concerning for those living in properties with maintenance issues. Almost 90,000 affected pensioners are living in homes with five or more problems, including poor repair, ineffective heating or inadequate insulation.
These housing issues make it even more challenging for residents to maintain warm living conditions. The data shows that pensioners who fall between the Pension Credit threshold and Minimum Income Standard are more likely to live in properties with maintenance problems.
LATEST DEVELOPMENTS:
Up to 850,000 households are estimated to be eligible but not claiming Pension Credit ALAMYThe deadline for applying for backdated Pension Credit, which will make someone eligible for the Winter Fuel Allowance, falls through on December 21, 2024.
A Government spokesman said: “Over a million pensioners will still receive the Winter Fuel Payment, and our drive to boost Pension Credit take-up has seen applications more than double with over 40,000 more pensioners now receiving it, as well as the Winter Fuel Payment.
“We have deployed additional staff to support processing applications, seeing a 51 per cent increase in the number of cleared claims since the Chancellor’s announcement.
“Many others will also benefit from the £150 Warm Home Discount and Cold Weather Payments this winter while our extension of the Household Support Fund will help with the cost of food, heating and bills.”
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