Over 250,000 in Lancashire to be hit by winter fuel allowance cut with those eligible urged to claim pension credit

More than a quarter of a million Lancashire pensioners will lose their winter fuel allowance this year if government plans to restrict the number of people who receive the payment get the go-ahead, it has been estimated.

Just over 36,000 elderly residents in the county would still be eligible for the cash under the proposed new system – compared to the more than 288,000 who benefited from it in 2022/23.

The figures – based on Local Democracy Reporting Service analysis of House of Commons Library data gathered by the Liberal Democrats – reveal that 87.4 percent of pensioners in Lancashire will no longer be entitled to the help.

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That is because they do not receive pension credit – the planned new threshold to determine eligibility for the winter fuel support, a move designed to ensure that only the poorest pensioners continue to get assistance with their heating bills.

MPs will vote on Tuesday on the proposal to scrap the allowance – worth £200 a year for those over 66 and £300 for the over-80s – for all other pensioners.

However, a Preston charity is warning that many people who are entitled to pension credit are not claiming it – meaning they will lose their winter fuel payments unnecessarily.

The new Labour government says the change is necessary to help plug a £22bn black hole in the nation’s finances which it says was left by the previous Conservative administration.

Across Lancashire’s 14 council areas, the proportion of pensioners who would no longer receive the allowance ranges from 80 percent in Blackpool up to 94 percent in Ribble Valley – reflecting the fact there are likely to be fewer pension credit claimants in more affluent parts of the county.

In raw numbers, Wyre has the most pensioners who would be affected by the change – almost 26,500 – followed by Lancaster and West Lancashire.

South Ribble and Chorley have the second-highest proportion of losers under the policy – 92 percent and 91 percent, respectively.

In Preston, the figure is 84 percent – but that still represents more than 17,000 people who would lose out.

It has prompted the Liberal Democrat opposition group on Preston City Council to table a motion to be put before next month’s full council meeting, committing the authority to write to the Chancellor to request a rethink of the proposed changes.

Acknowledging that many believe the current system of universal entitlement to winter fuel support is “not necessary”, the resolution calls for “a new threshold” to be set for eligibility for the allowance, rather than proposed receipt of pension credit.

Preston’s Lib Dem group leader John Potter says people who cannot afford to lose the financial support will be “caught out” under the present proposal – and the subject is cropping up every time he knocks on the door of a pension while canvassing.

“It saves £1.5bn – a lot of money, but in terms of government spending – it’s not massive.  The policy seems ill-thought-out – and is hitting the wrong people at the wrong time.

“I hope to be able to withdraw the motion to council because Labour have done the right thing [and changed their mind] – but, if not, I’ll absolutely be flying the flag for pensioners in Preston,” Cllr Potter said.

The Conservative group has also submitted a motion opposing the cut in winter fuel allowance. Leader Stephen Thompson said: “The winter fuel benefit changes…affect a wide range of pensioners, especially those that fall into a category where they may not qualify for pension credits because they may have a small pension.

“In rural areas not served by mains gas, oil heating is the norm which is expensive. The green lobby may well not like oil heating but the cost to convert to a greener source is beyond many pensioners ‘ budgets.

“The winter fuel allowance should stay especially as the many migrants are put up in warm hotels at colossal cost.”

The ruling Labour group on Preston City Council told the LDRS it would respond on the day to whichever of the two opposition motions on the issue is chosen for debate at the meeting, to be held on 17th October.

How fuel plan affects areas of Lancashire

This is how the proposed new threshold for receiving winter fuel allowance could affect different parts of Lancashire – ranked by the proportion of residents it is estimated would no longer receive the payment.

1. Ribble Valley – 94.3 percent (809 still eligible; 13,481 not)
2. South Ribble – 92.0 percent (1,836 still eligible, 21,133 not)
3. Chorley 91.3 percent (1,970 still eligible, 20,619 not)
4. Fylde – 90.9 percent (1,945 still eligible, 19,540 not)
5. Wyre – 89.7 percent (3,022 still eligible, 26,407 not)
6. Lancaster – 88.7 percent (3,098 still eligible, 24,429 not)
7. West Lancashire – 88.6 percent (2,754 still eligible, 21,452 not)
8. Rosendale – 87.0 percent (1,624 still eligible, 10,868 not)
9. Hyndburn – 84.9 percent (2,104 still eligible, 11,858 not)
10. Pendle – 84.8 percent (2,478 still eligible, 13,805 not)
11. Burnley – 84.6 percent (2,387 still eligible, 13,137 not)
12. Preston – 84.3 percent (3,179 still eligible, 17,1232 not)
13. Blackburn with Darwen – 81.4 percent (3,835 still eligible, 16,733 not)
14. Blackpool – 80.4 percent (5,271 still eligible, 21,600 not)

Estimated total number of Lancashire residents who would no longer be eligible for winter fuel allowance – 252,185

Estimated total number of Lancashire residents who received winter fuel allowance in 2022/23 – 288,497

Estimated proportion of Lancashire residents who would no longer be eligible for winter fuel allowance –  87.4 percent 

Source: Liberal Democrats/House of Commons Library data/Local Democracy Reporting Service analysis

How to check eligibility

Call the free Pension Service Helpline on 0800 731 0469 or visit www.gov.uk/pension-credit/eligibility to check eligibility – and apply online at www.gov.uk.

‘Make sure you get what you’re entitled to’

If the proposed changes to the winter fuel allowance are approved, only those pensioners who receive pension credit will get the payment.

In order to be eligible for that benefit, a single person must have a weekly income of less than £218.15 and a couple less than £332.95.   Savings are also factored in to the calculation.

However, government figures released last year show that only around 63 percent of people entitled to pension credit are actually claiming it – meaning more than 1 in 3 people nationwide are now at risk of losing their winter fuel allowance when they need not be.

Suzanne Carr, CEO of Preston-based charity Regenerage, is urging pensioners to ensure they are claiming everything to which they are entitled.

“We encourage those of pensionable age, perhaps with assistance from their friends and family members, to check and find out if they are entitled to benefits such as pension credit and, if there is disability in the household, attendance allowance.   Attendance allowance is not means-tested and intended to help pension-age households cope with the additional costs of disability.

“Many people are unaware of their entitlements and far too many benefits remain unclaimed. Additional income provided from benefits such as these can make living life easier for an older person.

“The voluntary, community, faith and social enterprise sector and charitable organisations like Regenerage and Citizens Advice have the wherewithal to support our older community to attain their entitled benefits, but cannot do so without being appropriately resourced.

“I call on our MPs to engage with the sector and enter into meaningful dialogue to mutual benefit.”

A dedicated helpline enables people to find out if they are entitled to attendance allowance – 0800 731 0122.

What have Labour said?

Responding to data showing the Ribble Valley Borough Council area has the greatest proportion of pensioners who would lose the winter fuel allowance under the new policy, Ribble Valley MP Maya Ellis said: “The scale of the mess inherited from the Conservatives means that the government is being forced to make very hard decisions. This includes the difficult decision to means test winter fuel payments so that we can protect the financial support available for pensioners who are most in need of support. This is not a decision that the Labour government wanted or expected to make.

 “Labour has always acted to help pensioners, the last Labour government lifted over one million pensioners out of poverty. This government’s commitment to the triple lock on pensions means 12 million pensioners will see their state pension increase by around £400 this year. We have also extended the Household Support Fund, so anyone struggling to keep warm can apply for a one-off grant through their local council.

“I want to be clear that winter fuel payments will continue for anyone in receipt of pension credit. Many people who are currently eligible don’t claim it. I would encourage you, your friends, family and neighbours to check if you are eligible by visiting www.gov.uk/pension-credit/eligibility or by calling the Pension Credit claim line on 0800 99 1234. If you struggle with this, please contact my office.

“This government has pledged to be open and transparent with the public about the state of the finances and the tough choices to be taken to protect our economic stability – as your MP I will always put Ribble Valley residents first and I will hold the government to that pledge,” said Ms. Ellis whose consistency overlaps – but is not entirely contiguous – with the Ribble Valley local authority area. As of this year, the seat now excludes Clitheroe.

Preston MP Mark Hendrick and South Ribble MP Paul Foster were approached for comment.  Speaking to the LDRS on the subject last month, Mr. Foster said he was speaking to the Treasury about “a number of initiatives” that could see “additional support [provided] to the people in the community that need it”.

What has the Government said?

Prime Minister Sir Keir Starmer told the BBC’s Laura Kuenssberg on Sunday he understood “how difficult” the winter fuel changes would be for some people.

“I do recognise it’s really hard for some pensioners. But of course, they do rely on the NHS, they do rely on public transport. So these things aren’t completely divorced.”

He added:  “Of course, they’re tough choices. Tough decisions are tough decisions. Popular decisions aren’t tough, they’re easy.”

The government also last week announced a six-month extension of the Household Support Fund, via which local authorities can provide discretionary payments to residents for help with essentials, including fuel bills.

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