Thousands of Pensioners to Freeze This Winter Amid Brutal Autumn Budget

Introduction to the Crisis

Rachel Reeves has been called “cruel” as thousands of pensioners will freeze this winter as they will lose winter fuel payments amid the brutal Autumn Budget.

Around 200,000 pensioners will freeze this winter and the number will rise annually as the government website states this number is set to be denied lifeline payments will be 2.2 million.

This is far higher than what the government previously announced and experts have sounded the alarm warning this will grow every year.

Previous Announcements and Current Situation

In June the Treasury announced 2 million pensioners will lose winter fuel payments of up to £300, as those with incomes of more than £35,000 will lose out.

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Impact on Pensioners

Following the disastrous Autumn Budget the true number now stands at an extra 200,000 pensioners totalling 2.2 million, the £35,000 income is set until at least 2029, according to Treasury documents.

Put simply, pensioners will be caught out in a doom loop of means testing annually.

Steve Webb, partner at pension consultants LCP said, “Another stealthy freeze in the tax system is the £35,000 cut-off for entitlement to Winter Fuel Payments.

“This was not increased in the Budget and it seems highly like that it will remain frozen for the foreseeable future.

“This means that pensioners currently on incomes under £35,000 could lose their Winter Fuel Payments if inflation increases to their pensions gradually take them over the cut-off.

“A policy that was originally meant to deprive 2 million pensioners of payments will actually hit a growing number of pensioners with every passing year for as long as the income limit is frozen.”

Expert Reactions

Dennis Reed, director of campaign group Silver Voices, said, “It’s a cruel and cynical move by the Government.

“The Government has basically got itself off the hook with its own backbenchers over the winter fuel payment, but they are not committed to it in any way. More and more pensioners will be denied the winter fuel payment as time goes on.

“You can’t set a means test and not increase it in line with inflation, because that means the number receiving the payment will gradually wind down to almost nothing.

“In addition, they are not increasing the winter fuel payment itself with inflation. Energy prices are going up all the time, but they are determined to stick to the £200 or £300 level. So it is a two-pronged attack which undermines the promises they made.”

Conclusion

The Autumn Budget has brought about a significant change in the winter fuel payments for pensioners. With the income limit set at £35,000 and frozen until at least 2029, thousands of pensioners will be denied the lifeline payments. The number of affected pensioners will rise annually, and experts warn that this will grow every year. The government’s decision has been met with criticism, with many calling it a “cruel and cynical move”. As the energy prices continue to rise, the fixed winter fuel payment will not be enough to support the pensioners, leaving them in a difficult situation.

Frequently Asked Questions

Q: How many pensioners will be affected by the change in winter fuel payments?

A: Around 200,000 pensioners will be affected this winter, and the number will rise annually, with a total of 2.2 million pensioners expected to be denied the lifeline payments.

Q: Why will the number of affected pensioners increase every year?

A: The income limit for winter fuel payments is set at £35,000 and will be frozen until at least 2029. As inflation increases, more pensioners will have their pensions pushed over the cut-off, resulting in them losing their winter fuel payments.

Q: What do experts think about the government’s decision?

A: Experts have criticized the government’s decision, calling it a “cruel and cynical move”. They warn that the fixed winter fuel payment will not be enough to support pensioners as energy prices continue to rise.