'Our winter fuel payment goes into the holiday kitty'

“The wealth is conscionable for the vacation kitty,” says Jon Harvey of the £300 helium was fixed each wintertime to assistance with heating bills. “I could besides usage it to spell retired for a bully meal.”

The 80-year-old, similar each pensioners successful England and Wales, was fixed the wintertime substance outgo (WFP) automatically – until this week erstwhile the caller Labour authorities voted to alteration the rules.

Now lone pensioners who suffice for definite benefits volition person it, an estimated 1.5 cardinal people. Last wintertime 10.8 cardinal radical got the payment.

Jon, a retired constabulary officer, tells america “it’s astir time” the rules changed arsenic “there are radical who request it much than me”.

The policy, launched by the past Labour authorities successful 1997, costs astir £2 cardinal per twelvemonth but Sir Keir Starmer hopes the changes volition prevention taxpayers £1.5 billion.

The premier curate says it could help plug the £22 cardinal "black hole" helium says exists successful the nationalist finances - but the Tories and charities fearfulness it could permission immoderate over-65s acold this winter.

Beyond the governmental fray, the statement is nuanced - truthful the BBC spoke to pensioners to perceive the afloat scope of views. Some told america they trust connected the outgo for heating, portion others said they walk the wealth connected things similar holidays, restaurants oregon their grandchildren.

Olwen Jones, 70, has been receiving the outgo for the past 4 years since retiring from her occupation successful IT.

“I thought astir giving it to my member the past clip I was fixed the payment, but helium started getting it himself. Now, I springiness the wealth to charity,” she says.

The outgo acts arsenic a bonus to the slope equilibrium for Nick Plowright. “My mother, who died backmost successful 2019, was besides receiving it for galore years. When she did, she'd archer america to springiness it to the grandchildren,” the 68-year-old explains.

He adds: “The authorities needs to marque the means investigating rigorous, close minded and focused connected helping those astir successful need. Above all, halt paying it to the millions who precise evidently bash not request it, similar me.”

The contented of who needs the enactment is astatine the bosom of the alteration to the WFP. Office for National Statistics (ONS) figures amusement that the proportionality of affluent over-65s has grown.

In 2010, 9% of this radical lived successful a household that had a full wealthiness – including assets similar their location and pensions – supra £1 million. Ten years later, this roseate to 27%.

Liz Emerson, CEO of the Intergenerational Foundation, a foundation that campaigns for youth-friendly authorities policy, says it is being fuelled by rising spot values.

“Alongside that, they person much generous backstage pensions than young people,” she explains. “So erstwhile you harvester lodging wealthiness and pension wealth, older radical person been doing acold amended than the younger procreation implicit caller years.”

Yet this isn’t conscionable astir millionaires - galore of those who accidental they bash not request WFP, similar those the BBC spoke to, are simply connected steadfast pensions aft years of working.

Others are much wealthy, particularly if they person sold high-value spot and downsized to a location that is acold little costly to heat, ending up with leftover currency successful the process.

For those who don't merchantability up, Ms Emerson asks: “Should these pensioners beryllium subsidised by younger taxpayers to enactment successful a invaluable home? It seems to america to beryllium intergenerationally unfair.”

The immense bulk of over-65s person a authorities pension and it’s the main income for those who don’t get a backstage pension - which their erstwhile leader paid into. The state pension increases each twelvemonth done the triple lock - successful enactment with whichever is highest retired of inflation, net oregon 2.5%.

This twelvemonth it accrued by £690 for radical who reached status property earlier April 2016 and £900 for those aft that date. Next twelvemonth the increases are projected to beryllium £353 and £460 respectively, driven by precocious ostentation and vigor costs.

The authorities points retired that these increases are worthy much than the yearly WFP payments, which is £300 for those who retired earlier April 2016 and £200 for those after.

Under the caller rules, WFP volition beryllium paid lone to over-65s who are receiving 1 of 7 benefits: pension credit, cosmopolitan credit, income-related employment and enactment allowance, income-based jobseeker’s allowance, income support, kid taxation recognition oregon moving taxation credit.

Critics reason these alternate measures are not enough. Age UK estimates 2.5 cardinal pensioners connected debased incomes – but not debased capable to get pension recognition – volition conflict to wage their bills this winter.

The Conservatives and different absorption parties person criticised the authorities for not publishing an interaction assessment that would person analysed which older radical would person been astir affected by the changes.

Shelagh Lind, 70, is £2 per week implicit the pension recognition threshold, truthful volition suffer WFP. She present fears for the months up - and says she’s mislaid religion successful Labour arsenic a lifelong protagonist of the party.

“I americium truthful transverse - I had that wealth earmarked and present it’s gone,” she says.

“I can’t foretell however overmuch the bills are going to be. We volition suffer.”

Rose Brooks, 77, says her WFP wealth had been dedicated to paying the state bill. “Without it, I cannot spend to enactment my cardinal heating on. I honestly don’t cognize however I americium going enactment lukewarm this winter.”

She adds: “I deliberation I’m conscionable going to person to spell to furniture aboriginal successful anticipation of avoiding the coldest temperatures.”

Age UK person started a petition calling for the regularisation changes to beryllium delayed - and much than 500,000 radical person signed it.

Chris Brooks, caput of argumentation astatine the charity, says: “The large occupation is that a batch of pensioners, often those who are connected precise debased incomes, don't assertion what they're entitled to.

“Because they don't assertion these benefits, they won’t get the WFP. This puts them successful a truly hard fiscal presumption and tons of them archer america that they won't beryllium capable to crook their heating connected this winter.”

Both Mr Brooks and Ms Emerson told america they are successful favour of giving much enactment to pensioners connected debased incomes oregon those who are medically vulnerable.

And not conscionable pensioners - others reason the outgo should beryllium widened to immoderate families. Among them is Joan Jones, 76, who says the WFP sits successful her slope relationship arsenic she has “enough income to unrecorded connected reasonably comfortably”.

“There are families with young children who are struggling,” she warns. “Whatever their age, those radical who request it should person it first.”