Key group of 1.6 million who need DWP payment won’t get it, analysis shows
About 1.6 million pensioners living below the poverty line could miss out on winter fuel payments, according to analysis by pension consultants LCP. The analysis reveals that many older people who are below the poverty line do not receive pension credit, making them ineligible for the payment. This decision to means test winter fuel payments has drawn criticism from various groups, including opponents of Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer.
Here is a breakdown of the key points from the analysis:
- Around 1.6 million pensioners do not receive pension credit and may potentially miss out on winter fuel payments.
- Some pensioners may not claim pension credit even if they are eligible.
- Factors like housing costs could push pensioners below the poverty line.
- Various suggestions were made to target winter fuel payments more effectively.
- The Living Wage Foundation’s research highlights the challenges faced by workers in saving for retirement.
Sir Steve Webb pointed out that limiting payments to only those on pension credit would leave a significant number of low-income pensioners at a disadvantage. While the Government aims to target support to those in need, critics argue that a rethink is necessary to ensure the welfare of vulnerable pensioners.
The Living Wage Foundation’s findings indicate a surge in the average pension pot required for a basic standard of living in retirement. This underscores the importance of voluntary savings targets like the “living pension” accreditation to help workers build a sufficient pension pot for their future needs.
Liberal Democrat leader Sir Ed Davey expressed concerns over the potential impact on pensioners, urging the Government to reconsider its decision. In response, a Government spokesperson reassured that measures are in place to support pensioners, including the winter fuel payment and the warm home discount scheme.
As the Government reviews pension schemes, there is a focus on ensuring future pensioners have financial security. The analysis sheds light on the challenges faced by pensioners in the current economic climate, prompting discussions on the need for targeted support and long-term financial planning.