Millions of pensioners in the UK are caught in a financial trap, unable to afford a dignified standard of living but deemed too wealthy to qualify for Winter Fuel Payments, new research by the Centre for Ageing Better reveals.
The decision by Kier Starmer to slash universal Winter Fuel Payments has been criticised by charities and unions alike, however this research shows how many are deemed ‘rich enough’ not to get the allowance are actually really struggling.
The analysis shows one in four pensioners, or 2.5 million people, live on incomes below the Minimum Income Standard (MIS), a benchmark for living with dignity.
This includes being able to heat their homes adequately, enjoy occasional leisure activities and afford basic necessities.
For single pensioners, the MIS is £17,200 and for couples, it’s £27,800—far above the eligibility thresholds for Pension Credit and Winter Fuel Payments, which stand at £11,344 for individuals and £17,313 for couples.
Older pensioners are particularly affected. Nearly 30% of those aged 74 and over fall into this gap, with more than 1.4 million excluded from energy support despite struggling to cover essential costs.
The findings highlight a growing divide, leaving vulnerable older people to face harsh winters without adequate financial support.
CEO Dr Carole Easton said: “In removing the support so quickly and in removing support from a significant number of low-income pensioners already in financial distress, the government has created an avoidable crisis.
“Now they must respond by increasing the ambition of their long-term solution and the speed of its delivery.”
The group wants policy reforms to address this gap, ensuring pensioners can live with dignity and keep their homes warm.
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