Rachel Reeves has been called “cruel” as thousands of pensioners will freeze this winter as they will lose winter fuel payments amid the brutal Autumn Budget.
Around 200,000 pensioners will freeze this winter and the number will rise annually as the government website states this number is set to be denied lifeline payments will be 2.2 million.
This is far higher than what the government previously announced and experts have sounded the alarm warning this will grow every year.
In June the Treasury announced 2 million pensioners will lose winter fuel payments of up to £300, as those with incomes of more than £35,000 will lose out.
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Following the disastrous Autumn Budget the true number now stands at an extra 200,000 pensioners totalling 2.2 million, the £35,000 income is set until at least 2029, according to Treasury documents.
Put simply, pensioners will be caught out in a doom loop of means testing annually.
Steve Webb, partner at pension consultants LCP said, “Another stealthy freeze in the tax system is the £35,000 cut-off for entitlement to Winter Fuel Payments.
“This was not increased in the Budget and it seems highly like that it will remain frozen for the foreseeable future.
“This means that pensioners currently on incomes under £35,000 could lose their Winter Fuel Payments if inflation increases to their pensions gradually take them over the cut-off.
“A policy that was originally meant to deprive 2 million pensioners of payments will actually hit a growing number of pensioners with every passing year for as long as the income limit is frozen.”
Dennis Reed, director of campaign group Silver Voices, said, “It’s a cruel and cynical move by the Government.
“The Government has basically got itself off the hook with its own backbenchers over the winter fuel payment, but they are not committed to it in any way. More and more pensioners will be denied the winter fuel payment as time goes on.
“You can’t set a means test and not increase it in line with inflation, because that means the number receiving the payment will gradually wind down to almost nothing.
“In addition, they are not increasing the winter fuel payment itself with inflation. Energy prices are going up all the time, but they are determined to stick to the £200 or £300 level. So it is a two-pronged attack which undermines the promises they made.”
