LABOUR’S cut to the Winter Fuel Payment will leave around “100,000 more pensioners in relative poverty”, the UK Government's own analysis has found.
Department for Work and Pensions (DWP) modelling published by the House of Commons Work and Pensions Committee on Tuesday found that the Government’s decision to change the Winter Fuel Payment to a means-tested payment will leave many pensioners worse off.
It comes just hours after Scottish Labour U-turned on its position on the Winter Fuel Payment, pledging to bring it back should the party win the next Holyrood election.
Scottish Labour leader Anas Sarwar (above) was slammed as a “chancer” after he previously defended the cut, leading to the party’s MSPs voting against a Holyrood motion calling on the UK Government to reverse its decision.
The UK Government’s own analysis has now revealed that an estimated 100,000 more pensioners will be in relative poverty after housing costs in 2027 as a result of the cut to the payment.
READ MORE: By-election candidates call out Anas Sarwar over 'convenient' winter fuel U-turn
A document showing internal modelling estimates stated: “Compared to the numbers that would have been in poverty without this policy, it is estimated that in each year in question there will be an additional 50,000 pensioners in relative poverty after housing costs in FYE (financial year ending) 2025, 2026 and 2028, and an additional 100,000 pensioners in relative poverty after housing costs in FYE 2027, 2029 and 2030.
“For all other measures of poverty it is estimated that there will be an additional 50,000 pensioners in poverty each year from FYE 2025 to 2030.”
The Labour Government voted to scrap the Winter Fuel Payment for all but the poorest pensioners in September.
This led the Scottish Government to replicate the decision, saying it had been “left with no choice” but to end universal fuel payments due to the loss of funding which flowed from Labour's decision.
Charity Age Scotland warned that “the majority” of pensioners in Scotland would be left in poverty as a result of the UK Government’s cut.
'The time to act is now'
The SNP have reiterated calls for the UK Government to “immediately” reinstate the payment as universal.
Fulton MacGregor, MSP for Coatbridge and Chryston, said: “While Labour in Scotland sit on their hands, new figures show 100,000 more pensioners will fall into relative poverty because of this cut. The time for the UK Government to act is now.
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“Anas Sarwar has called for the return of the Winter Fuel Payment in a few years’ time - but that is not good enough. Pensioners need support today. Now he has admitted this Labour policy is disastrous he should be backing our calls for Sir Keir Starmer to immediately give pensioners their winter heating support back.
“The people of Scotland have seen right through that Scottish Labour’s ambition for Scotland is to simply mitigate decisions made by a Westminster Labour Government. By contrast, the SNP will always put Scotland first - and deliver a better future for Scotland with independence.”
Meanwhile, a UK Government spokesperson said: “Internal modelling on poverty estimates was produced as part of routine policy advice. The modelling is subject to a range of uncertainties and does not take into account the significant work we’re doing to encourage pension credit take-up. Our awareness drive has resulted in a 152% increase in claims since July.
“The modelling also doesn’t reflect that we have put in place extra support for those who need it most, such as our extension of the Household Support Fund. Many pensioners will also benefit from the £150 Warm Home Discount and Cold Weather Payments to help with energy bills and millions of pensioners are also set to benefit from an increase of up to £470 to the state pension in April.
“This government inherited a £22 billion black hole in our public finances, which means we needed to take tough decisions to balance the books.
“We continue to urge pensioners to check their eligibility for pension credit to ensure as many people as possible receive the support they’re entitled to.”
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