“We are pleased the Chancellor has sensibly changed the eligibility criteria for the Winter Fuel Payment, meaning around nine million pensioners will now receive the benefit.
“Fuel Bank Foundation has long called for reforms to the Winter Fuel Payment and we are pleased to see some of our suggestions have been included in the reforms.
For example:
- There should be no return to universalism: In an era of very tight government budgets, it is essential that support is targeted at those who need it most.
- Set a fair threshold: The threshold for the payment needs to be set at a level which ensures that all older, poorer people can afford to pay for the energy they need. The new increased threshold means no lower or middle-income pensioners will miss out, with the vast majority – over three quarters – of pensioners in England and Wales receiving the payment.
- Automatic receipt of support: We have long advocated for eligible people to automatically receive support where they are entitled to it, rather than having to apply for it. Under the new WFP, no pensioner will need to take any action as they will automatically receive the payment this winter, and for those with incomes above the £35,000 threshold it will be automatically recovered via HMRC. No one will need to register with HMRC for this or take any further action. Pensioners who want to opt out and not receive the payment at all, will be able to do so.
“Implementing these changes in time for this winter will be seen as a ‘quick win’ for the Chancellor, but long-term we would like to see reforms to the WFP go further. For example, the level of support to help make energy more affordable should be based on the needs and energy costs of individual households.
“We also think that support intended for energy should be paid directly on to bills, rather than into bank accounts, where the money could be spent on other things.
“Finally, we’d like to see a recognition that people of all ages (not just older people) are now struggling to afford energy. We continue to call for the introduction of some form of targeted energy bill support, such as a social tariff.”
