Around 600,000 disabled pensioners will lose out under the government’s revised winter fuel payment policy, according to official analysis.
Prime Minister Sir Keir Starmer has confirmed that the allowance, worth up to £300, will now only be available to pensioners with an income of £35,000 or less.
The decision means more than two million pensioners across the UK will no longer qualify for the winter fuel payment. Of those, over a quarter are disabled and will effectively be forced to return the £300 through the tax system.
The change comes after a significant government U-turn. Ministers had initially planned to remove the payment from millions more pensioners, but the new policy restricts the cut to those earning above £35,000. Critics argue that the threshold is far too low, particularly for disabled pensioners who face higher living and heating costs.
Dennis Reed of the over-60s campaign group Silver Voices said that the means-tested threshold failed to account for individual circumstances. He noted that many disabled pensioners face extra expenses, such as the need to heat their homes for longer periods or charge essential medical equipment, including electric wheelchairs.
Tory shadow pensions secretary Helen Whately also criticised the policy, describing it as confusing and poorly designed. She warned that the move leaves many disabled pensioners vulnerable as they face rising energy bills this winter.
The winter fuel payment row has dominated Sir Keir Starmer’s first year in office. The government was eventually forced into a £1.25 billion U-turn after intense criticism of its initial plan to restrict the payment to those on Pension Credit. However, the revised scheme has added to Chancellor Rachel Reeves’ financial challenge, with the Treasury facing an estimated £50 billion budget shortfall ahead of the autumn Budget.
Paul Johnson, former director of the Institute for Fiscal Studies (IFS), also called the policy “messy”. He highlighted inconsistencies, pointing out that a wealthy couple where one partner earns £100,000 and the other £30,000 would still qualify, while a couple where both partners earn £36,000 would receive nothing.
A Department for Work and Pensions spokesperson defended the government’s position, saying that support for pensioners remains strong. They pointed to the triple lock guarantee, which will see the state pension rise by £1,900 over the course of this parliament, as well as additional winter fuel support for nine million pensioners.
