Experts not convinced Government will save cash by limiting winter fuel payments

The savings from limiting the wintertime substance allowance to lone the poorest pensioners are unclear and could beryllium outdone by a emergence successful those seeking pension credit, a radical of experts has warned.

The Social Security Advisory Committee (SSAC), which provides statutory proposal to ministers connected benefits, besides admonished the Government for not having provided an interaction appraisal of its plans earlier they were brought into law.

Chancellor Rachel Reeves announced the cosmopolitan payment would beryllium constricted to lone the slightest well-off pensioners not agelong aft Labour came into power, arsenic portion of a bid to plug what she called a £22 cardinal “black hole” successful the nationalist finances.

The fig of pensioners successful receipt of wintertime substance allowance is acceptable to autumn from immoderate 10.8 cardinal to 1.5 cardinal people, which could prevention the Government £1.5 billion.

Only those successful receipt of pension recognition and different means-tested benefits volition inactive suffice for the payment, pursuing a Commons ballot successful aboriginal September.

Since Ms Reeves’ announcement astatine the extremity of July, determination has been an uptick successful the fig of radical applying for pension credit, pursuing enactment to rise consciousness of the often under-claimed benefit.

But successful a missive to the Department for Work and Pensions published connected Wednesday, the SSAC said “it is not wide however the hostility betwixt the 2 goals of fiscal savings and accrued take-up of pension recognition is resolved wrong the plans”.

The committee besides said it was disappointed nary interaction appraisal of the plans had been made by the Government, and suggested it was not convinced by Sir Keir Starmer’s assurances that pension recognition take-up would forestall a fig of pensioners from falling into poverty.

It added: “Given the standard of pensioners who volition beryllium affected by this change, and the velocity astatine which it is being introduced, we are not likewise reassured that this volition beryllium the lawsuit and are of the steadfast presumption that a much elaborate appraisal is urgently required, successful particular, connected the imaginable poorness impact.”

The SSAC suggested further safeguards were besides needed for pensioners successful receipt of different benefits, including kid taxation credits and disablement surviving allowance.

Downing Street said scrapping the cosmopolitan payment was “not a determination that we wanted to take”, but pointed to the request to code ailing nationalist finances arsenic the crushed down the move.

A No 10 spokeswoman added: “When it comes to wintertime substance our presumption remains that we stay focused connected ensuring that those eligible for that enactment are receiving it.

“There continues to beryllium effort nether mode successful the Department (for Work and Pensions) to guarantee that radical are applying for that and receiving back-dated payments wherever eligible.”

Shadow enactment and pensions caput Mel Stride said: “The Government’s ain advisory assemblage has stated that wintertime substance outgo authorities is not acceptable for purpose.

“It confirms that leaving astir 10 cardinal pensioners retired successful the acold to wage for national wage rises volition person a immense interaction connected pensioners already successful poverty. Many volition look the dreadful prime betwixt heating and eating caused by this Labour Government.

“Labour person 13 days to reverse this argumentation earlier the Budget. Now is the clip for them to travel their ain advice, and unpick this cruel policy.”