£235million Winter Fuel Payments given to people ‘sunning it up abroad’
Millions of pounds in Winter Fuel Payments (WFP) have been sent abroad to help pensioners who have left the UK and are now spending their retirement in foreign countries. The Government has decided to change the rules on WFP making the payments means-tested, meaning only pensioners who qualify for pension credits will receive the extra £300 a year to help with energy bills. Here are the key points:
- Up to £300 available annually
- Government making WFP payments means-tested
- Only pensioners who qualify for pension credits will receive the payment
- 36,000 UK pensioners living abroad received £18.3 million in 2022/23
- Total amount sent abroad since 2002 is £235.5 million
Pensioners living in Cyprus, France, Gibraltar, Greece, Malta, Portugal, and Spain are not eligible for Winter Fuel Payments. However, pensioners living in other countries can receive the payment if they have lived or worked in the UK and moved to their new country before January 1, 2021.
Emma Reynolds, the Work and Pensions Minister, explained that the decision to means-test the payment was due to a ‘£22 billion black hole’ in the year’s public finances. She emphasized that targeting the support on the poorest pensioners was the right decision to make, as there are wealthy pensioners who do not require the additional financial assistance.
William Yarwood of the TaxPayers’ Alliance expressed concern over the disparity, stating, “While pensioners just above the cut-off are stripped of their winter fuel payments at home, those sunning it up abroad will go unaffected.” Despite the changes, pensioners living abroad who claim an equivalent to pension credit will still receive the payment.
Ms. Reynolds also highlighted other mitigation measures introduced by the Government, such as extending the Household Support Fund, and criticized the previous government for not doing more to increase uptake of Pension Credit. The decision to means-test Winter Fuel Payments reflects the Government’s effort to prioritize support for those in need while addressing financial challenges.
Conclusion
In conclusion, the shift towards means-testing Winter Fuel Payments marks a significant change in the support provided to pensioners living abroad. By targeting the assistance to those with lower incomes, the Government aims to direct resources where they are most needed. This move has sparked discussions about fairness, financial responsibility, and the impact on different groups of pensioners, both in the UK and overseas.