Winter fuel: thousands more could lose benefit if it becomes means tested, data suggests | Welfare

A further 175,000 pensioners could lose the winter fuel allowance if the benefit becomes means tested, data suggests.

About 11.6 million people in the UK received the benefit last winter, an increase of 214,000 on the previous year, according to figures released on Tuesday by the Department for Work and Pensions (DWP). The overwhelming majority are to have this removed this winter under plans announced by the Labour government to cut spending on the benefit.

The increase in recipients is in line with previous rises and is likely to be a result of Britain’s ageing population. The figures show the number of recipients of the winter fuel payment aged 75 and over in Great Britain is rising.

It comes before a non-binding vote on Wednesday at the Labour party conference in Liverpool, where the leadership faces possible defeat as delegates oppose the government’s plan to limit the benefit according to people’s means.

Only about 14% of the pensioners receiving the £200 or £300 payments are likely to continue to do so should the government enact its plan to save the exchequer up to £1.5bn a year, according to estimates by the House of Commons library for England and Wales. If extended to the whole of the UK, nearly 10 million people are in line to lose the lump sum payments, according to Guardian estimates.

The chancellor, Rachel Reeves, has described the cut as one of several “difficult decisions” Labour is making to fill a £22bn hole in the government finances left by the Conservatives. But opponents include the trade union Unite, whose general secretary, Sharon Graham, called it a “cruel policy”.

The DWP figures also show the constituencies where the largest number of people receive the benefit and, therefore, could lose out most, depending on residents’ means.

More than 30,000 constituents in Clacton, the Essex seaside constituency where the Reform party leader, Nigel Farage, is the MP, receive the benefit, making it the place with the most recipients.

It is followed by the Conservative seat of Christchurch, in Dorset, and West Dorset, held by the Liberal Democrats. The Labour constituency with the most recipients is Suffolk Coastal, where almost 27,000 people receive the payment – the 13th highest of any seat.

A government spokesperson said: “We are committed to supporting pensioners – with millions set to see their state pension rise by £1,700 this parliament through our commitment to the triple lock. Given the dire state of the public finances we have inherited, it’s right we target support to those who need it most.

“Over a million pensioners will still receive the winter fuel payment, while many others will also benefit from the £150 warm home discount to help with their energy bills over winter, and we have already seen a 115% increase in pension credit claims following the launch of our awareness campaign.”