Tens of thousands more pensioners will be pushed into poverty every year because of the winter fuel allowance cut, the Government’s own analysis has revealed.
Government estimates suggest that limiting the payment will mean an estimated 50,000 more pensioners are in relative poverty after housing costs in 2025, and 100,000 more in 2026.
The benefit, worth between £100 and £300, was previously handed to around 10million people aged over 66 to help with energy bills during the winter. But from this month it will only be available to those on pension credit or other means-tested benefits.
Chancellor Rachel Reeves said the cut aims to save the Treasury £1.5billion a year.
Government analysis on the impact of the plan was published by the House of Commons Work and Pensions Committee on Tuesday.
A letter to the committee from Work and Pensions Secretary, Liz Kendall, said: "The latest modelling shows that compared to the numbers that would have been in poverty without this policy, it is estimated that in each year in question there will be an additional 50,000 pensioners in relative poverty after housing costs in 2024-25, 2025-26 and 2027-28, instead.
"The modelling also shows that an additional 100,000 pensioners are estimated to be in relative poverty after housing costs in 2026-27, 2028-29 and 2029-30.
"For all other measures of poverty it is estimated that there will be an additional 50,000 pensioners in poverty each year from 2024-25 to 2029-30."
Ms Kendall stressed that the modelling does not take into account impacts of measures being taken to increase Pension Credit take-up and “to ensure pensioners get the benefits to which they are entitled”.
Applications for Pension Credit have been boosted by 152% following a Government campaign and some 120,000 pensioners in receipt of Housing Benefit have been written to encouraging them to make a claim.
Ministers have faced harsh criticism for slashing the benefit, with opposition MPs urging them to rethink the move.
Shadow work and pensions secretary Helen Whately said: "Finally the dam breaks and we get to see what Labour have known all along.
"Their winter fuel payment cuts are going to plunge 100,000 pensioners into poverty in the next few years.
"Clearly Keir Starmer feels like that's a price worth paying to make a political point. But I don't think those pensioners would agree with him."
Ms Kendall said the Labour Government had been "forced" to limit the payment due to the "£22 billion black hole" it blamed the Conservatives for leaving behind.
In her letter, she wrote: "Means-testing winter fuel payments was not a decision this government wanted or expected to take. However, we were forced to take difficult decisions to balance the books in light of the £22 billion black hole we inherited.
"Given the dire state of the public finances, it's right that we target support to those who need it most while we continue our work to fix the foundations and stabilise the economy - which is the best way to support pensioners in the long term and is what has allowed us to deliver our commitment to the triple lock."
