The furor over Labour’s scrapping of the universal winter fuel payment was made public earlier this year – but the cut in the benefit every year since 2000 has been less talked about.
About 1.3 million people in England and Wales who are eligible for certain income-tested benefits could get £200 or £300, down from more than 11 million previously.
These amounts have not changed in more than two decades, despite periods of extremely high inflation and skyrocketing energy prices in recent years.
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Sky News analysis in Money blog It shows that the £200 available to people aged 60-79 would be worth £370 today if it rose in line with inflation.
Had they risen in line with energy prices, they would be worth around £1,000 now, and would have paid more than £1,200 during the peak of the energy price crisis in the winter of 2022-23.
The amount for the over-80s was raised to £300 in April 2003. If that had risen with inflation since then, it would be more than £500 now.
If they had risen at the same rate as energy prices, they would be worth more than £1,200 now, and would have been worth more than £2,000 in 2022-23.
This large annual reduction in real value over the past thirteen years has coincided with a rise in pensions in real terms due to the triple lock – which may offset some of the consequences of freezing payments.
But charities who spoke to Money say vulnerable pensioners are suffering because of stagnant pay.
Caroline Abrahams, charity director at Age UK, said: “Energy prices are much higher than they were a few years ago, yet winter fuel payments that were designed to support pensioners with these costs have remained the same.”
“More recently, of course, the current government has decided to brutally ration access to payment, and the main qualification for it now is that you get pension credit.
“The lack of commitment to winter fuel payments by governments of all colors reflects a lack of clear vision in Whitehall about the difficulties older people on low and modest incomes face in getting their money to stretch to cover essentials, especially during the cold months when they need to stay warm to protect their health. “
Disability Rights UK pointed out Report this week It is estimated that 10,400 people with terminal illnesses die in poverty every year.
Therefore, the charity says it is “astonishing” that winter fuel payments have not been raised in decades.
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Policy and campaigns officer Dan White said: “Energy bills are rising, energy companies are posting huge profits, and poverty is rising, so there is clear evidence that current winter fuel payments are out of touch with the financial reality of life for disabled pensioners.
“The increase is not only justified, it is inevitable, and we need a social energy tariff that targets those facing high energy costs, including the disabled and the elderly. If the government fails to act accordingly, there will be a humanitarian crisis on our doorstep.”
We asked the Government whether raising fuel payments for the winter is something it would consider. The Department for Work and Pensions told us:
“We are committed to supporting pensioners – with millions expected to see their state pensions rise by up to £1,700 this Parliament through our commitment to the triple lock.
“More than a million pensioners will still receive winter fuel payments, and our campaign to boost access to Pension Credit has already seen a 152% increase in claims.
“Many other people will also benefit from the £150 Warm Home Rebate to help pay their energy bills over the winter, while our extension to the Family Support Fund will help with the cost of food, heating and bills.”