A further 50,000 pensioners might be residing in relative poverty subsequent yr because of cuts to the winter gas allowance, the federal government’s personal estimates have revealed.
Earlier this yr, Chancellor Rachel Reeves introduced the £300 fee can be restricted to all however the poorest pensioners – these eligible for pension credit score.
In a bid to melt the influence of the cuts, the federal government launched a marketing campaign to encourage eligible pensioners to use for pension credit score.
In a letter clarifying the figures, Work and Pensions Secretary Liz Kendall mentioned the estimates didn’t bear in mind any elevated take-up of pension credit score.
In accordance with the estimates supplied by the federal government, within the years ending March 2025, March 2026 and March 2028 there might be an extra 50,000 pensioners in relative poverty after housing prices.
Within the years ending March 2027, March 2029 and March 2030 an extra 100,000 pensioners can be in relative poverty after housing prices.
The annual figures are rounded to the closest 50,000. Kendall mentioned this meant “small variations within the underlying numbers impacted can result in a lot bigger modifications within the rounded headline numbers”.
The cumulative whole over time doesn’t essentially confer with particular person pensioners, who might transfer out and in of relative poverty over time relying on their private circumstances.
At present the federal government estimates 1.9 million pensioners – round 15% – are in relative poverty.
The brand new estimates, printed on Tuesday, counsel the cuts to the winter gas fee would enhance pensioner poverty by 0.5 proportion factors.
An individual is taken into account to be residing in relative poverty if they’ve lower than 60% of the median revenue.
In her letter, Kendall mentioned the work and pensions division had written to 120,000 pensioners to encourage them to say the pension credit score to which they might be entitled.
She added that the choice to chop the winter gas funds was “not a call this authorities needed or anticipated to take”.
“Nevertheless, we have been pressured to take troublesome choices to steadiness the books in mild of the £22bn black gap we inherited.
“Given the dire state of the general public funds, it’s proper that we goal assist to those that want it most.”
Helen Whately, the Conservatives’ shadow work and pensions secretary, mentioned: “Lastly the dam breaks and we get to see what Labour have identified all alongside.
“Their winter gas fee cuts are going to plunge 100,000 pensioners into poverty within the subsequent few years.
“Clearly Keir Starmer seems like that is a value value paying to make a political level. However I do not assume these pensioners would agree with him.”
Daisy Cooper, the Liberal Democrats’ Treasury spokesperson, mentioned: “Whereas the Conservatives undoubtedly left this authorities a dire fiscal inheritance, that is no excuse to push extra pensioners into poverty because the temperature plummets.”
Throughout a press convention in Brazil, the place the prime minister is at the moment attending a G20 summit, Sir Keir Starmer was requested concerning the figures.
He mentioned that the state pension would rise by £470 within the spring and that pensioners can be higher off.
Earlier within the day, Scottish Labour chief Anas Sarwar diverged from Sir Keir by pledging to extend eligibility for pension credit score in the event that they fashioned the following authorities.
