The Labour Government's revised Winter Fuel Payment scheme will still leave approximately 600,000 disabled pensioners without up to £300 in energy bill support, shocking analysis has revealed.
Despite backtracking from their original plan to limit payments solely to Pension Credit recipients, the new £35,000 income threshold means over two million pensioners must return the £300 benefit through the tax system.
Disabled pensioners comprise more than a quarter of those affected by the cuts, meaning around 600,000 individuals with long-term health conditions or illness will be impacted.
The policy shift follows intense criticism of the Government's initial approach, though campaigners argue the revised system remains inadequate for vulnerable households facing significantly higher energy costs due to disability-related needs.
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600,000 disabled pensioners are estimated to be at risk of losing their Winter Fuel Payments
|GETTY
Under Labour's "complex" new arrangement requires all pensioners to initially receive Winter Fuel Payments of up to £300, but those earning above £35,000 annually must repay the allowance via PAYE or tax returns.
The policy reversal has contributed an estimated £50billion fiscal challenge for Chancellor Rachel Reeves ahead of the Budget with analysts warning more cuts will have to be put forward.
Last week, the Social Security Advisory Committee warned the scheme's "level of complexity" could generate "unnecessary anxiety or confusion" amongst elderly recipients, describing it as a "web of processes that some elderly recipients may struggle to understand and to navigate".
Disabled households typically face energy bills that are £975 higher each month compared to other households, according to calculations from disability charity Scope.
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The Winter Fuel Payment can help towards energy bills in the winter | PAThese additional costs stem from essential needs such as maintaining higher temperatures for health conditions and powering medical equipment like electric wheelchairs.
Dennis Reed, a campaigner for pensioner advocacy group Silver Voice, highlighted the policy's failure to recognise individual circumstances: "An annual income of £35,000 is not a king's ransom under any circumstances let alone for a disabled pensioner."
He emphasised that disability often necessitates increased heating usage and additional electricity consumption for medical devices, expenses the current threshold fails to accommodate.
Shadow pensions secretary Helen Whately condemned the revised system as "clumsy, complicated and ill-judged," stating that Labour had "lurched into a half-baked means test causing yet more confusion and still leaving disabled pensioners in the cold".
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Labour MP Rachael Maskell demanded "absolute cast-iron guarantees that disabled people, particularly people with long-term chronic conditions are not going to be compromised".
She warned that some disabled individuals must maintain constant heating for health reasons and "no disabled person should have their health compromised because they can't afford their heating".
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Protests against Winter Fuel Payments | PAThe Social Security Advisory Committee concluded the policy "falls short in terms of delivering on the Government's objectives of fairness, administrative simplicity, and targeted support."
A spokesman for the Department for Work and Pensions (DWP) said: “We are committed to supporting pensioners and thanks to our triple lock, millions will see their yearly State Pension rise by £1,900 this parliament.
"Nine million pensioners will also have help with their fuel bills this coming winter. Pensioners with a physical or mental disability can also receive Attendance Allowance, worth up to over £5,600 a year and we urge everyone eligible to apply."
The Chancellor's upcoming Autumn Budget is expected to take sometime in late October-early November 2025.