'Terrified' calls from Scottish pensioners as £300 winter fuel allowance cut looms

It has been branded the “wrong decision” by charities flooded with calls by concerned pensioners - and the impact of the winter fuel cut allowance has already rippled far beyond the corridors of Whitehall where a newly-elected Labour government is making difficult decisions.

Chancellor Rachel Reeves announced this week the winter fuel allowance for pensions would be means-tested, among a series of measures aimed at filling a £22 billion black hole in the public finances.

Responding to the announcement, Scottish public finance minister Ivan McKee said the Scottish Government now had “some difficult decisions to make” and refused to commit to maintaining the universal aspect of the winter fuel payment benefit north of the Border.

Charities, including Independent Age and Age Scotland, have warned both the Scottish and UK governments “not to put pensioners in poverty out in the cold” over the planned allowance cut.

And they have urged both administrations to change course, or at least put measures in place to protect pensioners from the impact of the decision. Charity leaders also revealed an increase in calls from concerned pensioners, with some saying they were “terrified” by the decision, which is worth up to £300 a year.

Katherine Crawford, chief executive at Age Scotland, revealed her surprise at the decision and labelled it “short-termism”.

She said: “I think genuinely all of us were really quite surprised, if not shocked, to hear the announcement from the Chancellor Rachel Reeves earlier in the week.

“We would estimate that there’s around 250,000 pensioners in Scotland that are too high to be eligible for pension credit, but too low to pay income tax. Our stats are showing around 39 per cent of pensioners in Scotland are living in fuel poverty. That’s 400,000 pensioners in Scotland.

“It is the wrong decision. I think Age Scotland really considers in the situation that hundreds of thousands of pensioners are already living in poverty. Why would we take away what is a universal benefit before we’ve enacted other initiatives so those people affected don’t lose out?”

Ms Crawford urged the UK government to help offset the cost by encouraging pensioners to take up pension credit, warning 80,000 people are due the allowance, but fail to claim.

Since the announcement, Age Scotland has received an increased number of calls from pensioners, with some ringing for help, while others have simply expressed their “terror” following the decision.

Ms Crawford said: “As soon as the announcement was made, we planned for an upturn in calls. We get 30,000 calls a year, and last year we supported older people in Scotland to claim over a million in unclaimed benefits.

“We had an immediate upturn in calls, with some people asking how they can claim pension credit and others just expressing worry. One lady told them they were terrified. To phone a charity and say you are terrified because of a government announcement is hard, that’s hard to hear.

“We did a survey last winter and 85 per cent of the people we surveyed said the winter fuel payment was important or very important to them. You do hear a little rhetoric that some people don’t need the winter fuel payment, or they’re wealthy and [it’s] not important to them. But it’s so important to remember the hundreds of thousands of people living in fuel poverty.

“I was thinking about the weather last winter, where the temperature really dropped, and I was picturing a snowy day, and you could see houses that were well insulated as snow stayed on the roof. Then ask yourself ‘is it because the house is well insulated, or because the house is cold?’”.

Age Scotland will meet with Scotland Secretary Ian Murray to discuss the decision and what can be done to mitigate the impact.

Ms Crawford called for measures to support pensioners and a change in how the underlying finances of the elderly were perceived.

She said: “The quickest easiest immediate fix is to reverse this decision, but we all recognise that the government wants to give support, and I would urge them to think about the underlying issue of income for older people. Think about what we can do to bring everyone up to the state pension level, and think ‘is that the right amount?’ You aren’t even paying income tax.

“We should be looking at the underlying figures for pensioners across Scotland, not just today, but as the generations roll on. We have to think about how we ensure pensioners in Scotland have enough money to live on.”

Addressing the Scottish Government, Ms Crawford added: “I appreciate and recognise the challenges the Scottish Government faces if this cut comes through. But I would really urge them to think carefully and realistically about how they make sure elderly people living in Scotland and tomorrow's pensioners have the right amount to live on to have a good quality of life and live well and heat their homes properly.”

UK government ministers insist the decision only comes due to the “horrendous” finances inherited from the Tory Government, with the Chancellor claiming there was a £22bn financial black hole in the public purse.

Concerns were also raised by Independent Age, a national charity focused on improving the lives of people facing financial hardship in later life.

Debbie Horne, Scotland policy and public affairs manager at Independent Age, claimed the decision was a “social injustice” and would leave pensioners worried about turning the heating on.

She said: “We are concerned that the UK government’s decision to restrict the Winter Fuel Payment in England and Wales to older people on Pension Credit could hugely impact older people living on a low income across Scotland.  

“In a compassionate and just society, no one should have to worry about not being able to turn the heating on. But the reality for many older people in Scotland is far from this. An unacceptably high one in three pensioner households live in fuel poverty. That fact many older people are facing winter in the cold in Scotland and across the UK - the 6th richest country in the world - is a social injustice. 

“The UK Government’s policy change will mean those in England and Wales who are eligible for Pension Credit, but who do not receive it, will lose out on this lifeline in the winters to come. As will those whose income is as little as a pound over the cut off for pension credit. The potential impact of removing the equivalent payment in Scotland could be severe.”

Independent Age suggested while the UK government was seeking to save money with the decision, it could cost more by placing strain on the NHS.

Ms Horne said: “In addition to having a detrimental personal impact on someone’s mental and physical health, this policy decision also risks significant cost implications. Evidence shows that cutting the incomes of older people struggling to make ends meet inevitably puts further strain and costs on the NHS and social care system as more people are unable to heat their homes, afford basic provisions or live well.  

“During winter last year, when polled, half of older people on a low income in Scotland disagreed with the statement ‘I am able to keep my home warm in the winter’. Rather than leaving older people in poverty out in the cold, we believe the UK government should not make this policy change now. Instead, they should work with others to ensure older people living on low incomes receive the income they need - both by establishing the income level required to avoid poverty in later life and urgently boosting the take up of pension credit, and other income related social security payments. 

“Currently, 150,000 pensioners in Scotland live in poverty. Yet we know that around 100,000 older people are missing out on pension credit they are entitled to every day in Scotland, worth a combined £189 million a year. It has never been more important to ensure that everyone eligible for pension credit receives it.”

Addressing the Scottish Government, Ms Horne suggested it introduces a “pensioner poverty plan” and works with Westminster to address the problem.

She said: “There are also steps the Scottish Government can take to reduce pensioner poverty, by using devolved powers to tackle the issue as much as possible. A good place to start would be the Scottish Government committing to introducing a pensioner poverty plan in their upcoming Programme for Government.  

“It’s vital that both governments work together to ensure that older people in Scotland are not left in the cold this winter.” 

Social Justice Secretary Shirley-Anne Somerville said: “The UK government’s decision to means-test the winter fuel payment is disappointing and was made without consultation or discussion with the Scottish Government.

“We are urgently considering the financial impact of the UK government’s cut to the winter fuel payment in England and Wales, and what this means for our replacement, Pension Age Winter Heating Payments in Scotland. It is estimated this UK government change will reduce Scotland’s funding by up to £160m in what is already an extremely challenging financial climate.

“The Scottish Government is committed to tackling fuel poverty and has consistently supported vulnerable households through a range of actions.”

A UK Government spokesperson said: “This government is committed to pensioners: protecting the triple lock, keeping energy bills low through our Warm Homes Plan, and cutting NHS waiting lists – bringing real stability to people’s lives.

“We said we would be honest with the public and, given the dire state of the public finances we have inherited, this Government must take difficult decisions to fix the foundations of the economy.

“In these circumstances it is right that Winter Fuel Payments are targeted at those in most need, and we will work with Local Authorities to boost the uptake of Pension Credit, reaching the many pensioners who could still benefit from this year’s Winter Fuel Payments.”