What are the Chancellor's options for Winter Fuel Payments?
Pensions & benefits Policy & regulation Economy
In her statement to the House of Commons on 29th July 2024, the Chancellor of the Exchequer announced that, with effect from Winter 2024, Winter Fuel Payments for pensioners would be restricted to those in receipt of Pension Credit. The Government’s initial estimate was that this would save around £1.4bn in 2024/25.
The announcement has proved controversial, with commentators noting that the change could leave some low-income pensioners not in receipt of Pension Credit in financial hardship, whilst opposition parties in the House of Commons have tabled motions to reverse the measure altogether.
Against this backdrop, this paper seeks to provide analysis to inform the debate about the measure itself and about the potential for alternative ways of saving money on Winter Fuel Payments.
