How we’ll cope without the winter fuel payment

Tens of thousands of pensioners will narrowly miss out on the winter fuel payment because they are £100 a year or less over the income limit for pension credit.

The chancellor, Rachel Reeves, has introduced means-testing so that this winter only those over state pension age who get pension credit or other benefits will get the payments, which are worth £200 to £300.

An estimated ten million pensioners will no longer be eligible and about 30,000 will miss out because they exceed the pension credit threshold by a few pounds a week, according to Policy in Practice, an organisation that aims to improve the welfare system using technology. Some 130,000 pensioners will miss out because they are £500 a year (£9.62 a week) over the threshold.

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“Tying the winter fuel payment to pension credit will mean far too many older people in financial hardship fall through the cracks,” said Morgan Vine from the charity Independent Age. “We are urging the government to delay its plans.”

To get pension credit, your weekly income must be below £218.15 if you are single, or £332.95 if you have a partner. Making winter fuel payments means-tested will save £1.4 billion this year and £1.5 billion next year as part of the government’s efforts to tackle a £22 billion black hole in the public finances.

A government spokesperson said: “Given the dire state of the public finances we have inherited, it’s right that we target support to those who need it most. Over a million pensioners will continue to receive the winter fuel payment, while many others will also benefit from the £150 warm home discount from October to help with their energy bills.”

We meet those who face tough decisions this winter without the support.

‘I’m losing the payment because of £2.85 a week’ — Rob Trewhella, 68, Penzance

Rob Trewhella gets £221 a week (£884 a month) from his state pension so is £2.85 a week over the pension credit limit. He lives alone and says this is not enough to pay the bills, so he works part-time as a taxi driver.

His essential bills come to £1,009 a month and his main expense is rent. He pays £675 a month for a one-bedroom flat in Penzance, Cornwall. Trewhella, 68, earns about £800 a month, usually working 7am to 10am, but will sometimes work from 7pm to 11pm. He says he enjoys it, but knows it will not be an option for much longer as he gets older.

“Even if I wasn’t working, I still wouldn’t qualify for pension credit,” he said. “I’d be living on fresh air if I didn’t have my income from taxi driving.

“I find it incredible that the government has taken money away from people who can’t afford it, or can’t replenish their savings. It appears that the austerity measures Labour is planning on bringing in are worse than George Osborne’s.”

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‘I will go to community centres to get a hot meal’ — Eileen Sharkey, 70, Co Tyrone

Eileen Sharkey misses out on pension credit, and therefore the winter fuel payment, by £3.05 a week. The 70-year-old lives alone in Strabane, Co Tyrone, after her husband died 13 years ago.

She got her first job aged 14 and worked as a cleaner for most of her live, except from when she took time off to raise her four children. She expects to have to make drastic cutbacks this winter so that her £221.20 a week state pension will stretch far enough. “I depended on the winter fuel payment,” she said.

“I’ll probably have one hot meal a day and go to bed early so I can turn off the lights and heating. I think I may need to go to community centres to get a hot meal.”

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‘I won’t be able to afford to use the cooker’ — Paula Beer, 75, Bridgend

Paula Beer has a reasonable pension so she doesn’t get any of the qualifying benefits for a winter fuel payment. Her income is £158.85 a week above the threshold for pension credit, but she does have considerable housing costs because she doesn’t own her own home.

She is planning to reduce her hot meals and heating because she is worried about being able to afford her energy bills this winter. Beer, 75, lives alone in Bridgend, south Wales, on an income of £1,508 a month — £753 of which is from her state pension and the rest from two civil service pensions.

She pays £700 a month rent and £100 a month to pay off a £2,500 credit card bill she racked up last year because she couldn’t afford her tenancy deposit and moving costs. This leaves her with £127 of disposable income each month after essential bills.

“I’m already on the breadline,” she said. “Every year the winter fuel payment gets me through the winter, and now it’s suddenly been swiped away. I won’t be able to afford using the oven so I’ll microwave everything or eat cold food. I’m going to have to heat one room in the house, which will be my lounge.”

Every week Beer attends a music night at her local community centre, but higher energy bills mean that she won’t be able to afford the petrol to get there, or the £2 orange juice and lemonade she buys each time. “I’ve worked a lifetime and I’ve been very careful to make provisions for my retirement,” she said. “Now I’m being forced to live in one room just to afford heat.”

The pension credit threshold is far below what the Pensions and Lifetime Savings Association estimates is needed for a minimum standard of living in retirement. It says a single person needs £14,400 a year, equivalent to £276.16 a week, for a minimum standard of living, excluding housing costs. For a couple, it is £22,400 a year, equivalent to £429.59 a week.

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‘I’ll have to take on more work’ — Linda Southall, 66, Cardiff

Linda Southall plans to work more shifts at a care home to afford her energy bills this winter. Southall, 66, from Rhoose, near Cardiff, gets £860 a month from her state pension, £98 a month from a civil service pension, and £45 a month pension from her job at a phone company.

This gives her £1,003 a month in total, equivalent to a weekly income of £250.75 — £32.60 over the qualifying weekly income threshold for pension credit.

She lives alone and her pension falls short of covering her bills, which come to more than £1,085 a month. “All I talk about is making ends meet, and I’m trying my hardest to get out of debt. It’s a real struggle,” she said.

Southall took up part-time work at a care home six months ago to top up her income, working three night shifts a week for £11.50 an hour. She is now taking on an extra six-hour shift every week to compensate for missing out on her £200 winter fuel payment and to cover the energy bills which are set to rise next month.

“I couldn’t cope with taking on any more than that because the work is so physical,” she said. “I work in a unit where people have dementia. I’m absolutely shocked. The government is discriminating against the very poorest.”

How do you get the winter fuel payment?

• Winter fuel payments are worth between £200 and £300, depending on where you live and who you live with. They are tax-free and paid in November or December.• You are eligible if you were born before September 23, 1958, and claim pension credit, universal credit, income-related employment and support allowance,jobseeker’s allowance or income support.• To get pension credit, your weekly income must be below £218.15 if you are single, or £332.95 if you have a partner.• Claim through the gov.uk website, or by phoning 0800 99 1234. You can apply up to four months before you hit state pension age.