Tag: pensioners

Britain is undersaving for retirement, warns Pensions Commission

The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

  • Interim report highlights key challenges in retirement saving across the UK with 15 million people currently undersaving for retirement.
  • Findings sets direction for further work to improve retirement outcomes ahead of final recommendations in 2027.
  • Commission set up as part of government’s wider reforms to pensions system to help more people retire with dignity.

The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

The report highlights that many people are not saving enough for retirement, particularly among low and middle earners, the self‑employed and women, and points to the need for the system to evolve to meet modern working lives.

There are currently 15 million people under saving for retirement which could reach 19 million without action, leaving large groups across the UK facing a severe cliff-edge when they retire, according to a new report from the Pensions Commission.

Set up by the Government in July 2025, the Commission aims to address a savings challenge that has been building for decades, examining why tomorrow’s retirees’ risk being worse off than today’s and making recommendations to reverse this.

This follows the success of the 2002 to 2006 Commission which built a consensus for the roll-out of Automatic Enrolment into pension saving, resulting in 89% of eligible employees now saving into their pensions, up from 55% in 2012.

Its findings include:

  • Low and middle earners are most at risk, with around half saving only at minimum Automatic Enrolment levels with little else to fall back on.
  • 45% of working-age adults – around 18 million people – are not saving into a pension at all, despite nearly half of them being in work.
  • Where employers are contributing about the statutory minimum this is largely benefiting higher earners.
  • Just 4% – one in 25 – of wholly self-employed workers are saving for retirement, and it’s even lower among younger self-employed people.
  • On current trends around 3 in 10 private pension pots are accessed at the earliest possible opportunity with half of all pots taken out in full. Nearly half of these are spent on large expenses like a car, holiday or renovations.

The Commission examined why tomorrow’s retirees are on track to be poorer than today’s with too many working age adults are saving nothing at all into a pension. A final report with recommendations will follow in early 2027.

Pensions Commissioner, Baroness Jeannie Drake said: “Over the past two decades since the Turner Commission there is no doubt pensions reform can be described as a success. Yet the second Pensions Commission is looking forward and seeing many people not saving enough and millions not saving at all.

“This demands a renewed national settlement on pensions.

“Achieving this will require clarity of purpose, but it also offers a moment of opportunity; to renew a social contract that commands confidence across the country.

“The recommendations we present in our final report will address the need to secure adequate income in later life and a pension system that is fit for decades to come.”

The Commission will set out the course to improving future outcomes whilst ensuring the system is fair and sustainable within and between generations.

Minister for Pensions, Torsten Bell MP, said: “Britain has got back into the pension saving habit, but the job is only half done with tomorrow’s pensioners still on track to be poorer than today’s.

“The Pensions Commission sets out clearly the scale of the challenge: not enough people are saving for retirement, and many of those that are aren’t saving enough.”

The Commission warns that without action millions more people could be at risk of becoming reliant on state support in retirement.

It adds that there is much for public policy to do to shape the future of pensions, whilst maintaining the broad political consensus pensions has had since the Turner Commission in the 2000s. The Commission is clear that change must happen in the right way, with any recommendations for change implemented gradually.

The Government has ruled out any changes to Automatic Enrolment contributions this Parliament.

Dr Yvonne Braun, ABI Director of Long-Term Savings Policy said: “The report makes a powerful case for a new national settlement for pensions. Automatic enrolment is a sturdy foundation, but must evolve to meet the scale of the challenges ahead.

“We and our members stand ready to work with the Commission to deepen saving, extend coverage and support better decisions in retirement, so that everyone can look forward to greater financial security in later life.

“Over the next year the Commission will hear a wide range of views before presenting its final report and recommendations in early 2027. A call for views from all interested parties has also launched today.

Rocio Concha, Director of Policy and Advocacy at Which? said: “Which? welcomes this interim report from the Pensions Commission and the valuable evidence it brings together on the UK’s pension adequacy challenge.

“It is very encouraging to see recognition of the need to increase private pension saving rates and coverage, while also acknowledging the financial pressures caused by the cost of living crisis.

The report rightly highlights that too many working people are projected to reach later life without sufficient savings, and that women, carers, the self-employed and many ethnic minority groups continue to face structural barriers. It is also promising to see a strong focus on how to support people to use their pension savings throughout retirement.

“Which? looks forward to continuing to work with the Commission, industry and wider civil society groups to help drive the reforms needed so people are better prepared for retirement.”

Julian Mund, Chief Executive of Pensions UK, said: “Pensions UK welcomes the breadth and ambition of this report, and shares the Commission’s view that we need a new national settlement on pensions.

“Evidence presented in the report clearly strengthens the case for more pension saving over longer working lives, alongside systemic change that delivers sustainable incomes – building on welcome reforms in the Pension Schemes Act.

“We look forward to working with Government to explore how that diagnosis can be turned into a practical roadmap for reform, well before the next generation fall short of the retirement incomes they expect and deserve.”

Caroline Abrahams, Charity Director at Age UK: “We welcome this new report from the Pensions Commission, which provides an excellent analysis of the problems facing our pensions system today.

“This is the first and necessary step for ensuring the pensions system of the future enables tomorrow’s older people to have a decent standard of living.

“There’s a clear need to improve the way the State Pension and private pension systems work together; otherwise people on low incomes are at risk of falling through the cracks and hurtling towards their retirements without the required funds, or the time to make up the shortfall.

“We look forward to working with the Commission as it explores the best solutions for future pensioners.”

Aside from the commission, the government is also reforming the pension landscape and improving retirement for today’s workers. The Pension Schemes Act, passed this month, will benefit 22 million workers by up to £29,000 by the time they retire, driving down costs, boosting returns and enabling the automatic consolation of small pension pots to ensure every pound saved works harder for working people.

Louise Hellem, Chief Economist, CBI, said: “The publication of the Pensions Commission’s interim report is an important step towards building a long-term framework that delivers adequate living standards in retirement. Getting this right requires the government, businesses and individuals all to play their role in supporting better saving.

“As the debate progresses, it is vital that retirement adequacy is considered hand in hand with the UK’s growth ambitions. Strong economic growth underpins sustainable pension outcomes by supporting employment and higher sustainable wage growth, enabling individuals to save, and driving stronger investment returns over time.

“It is only growth that can sufficiently reduce difficult trade-offs and maintain political, public and business support for change.”

TUC General Secretary Paul Nowak said: “Workers deserve a pension system that guarantees against poverty in retirement and enables them to maintain their standard of living.

“Although millions more people are now building up workplace pensions, far too many on low and middle incomes are not heading for a decent retirement – with women, Black and minority ethnic and disabled workers, and those in the gig economy at highest risk.

“The Commission must now develop a bold plan to fix this, which will need to include higher employer contributions and a fair deal for those currently missing out.”

Nausicaa Delfas, Chief Executive of The Pensions Regulator, said: “The pensions system is still unfinished business with too many people on track for an inadequate retirement income.

“That is why we welcome the Pensions Commission report, and look forward to continuing to work with the Commission, Government and industry to create a system which delivers what matters most: a sustainable income in retirement for everyone.

Independent Age Chief Executive Joanna Elson, CBE reacts to the Pension Commission’s interim report: “We welcome the Pension Commission’s interim report, which clearly sets out the challenges future pensioners will face in securing an adequate income.

“It is positive that the Commission recognises the vital role of the State Pension and social security entitlements in supporting those on low incomes. The findings that certain groups, including women and disabled people, are at greater risk of under-saving are concerning, but not unexpected. They echo our own research, which shows that these groups are more likely to experience poverty in later life.

“With 1.7 million older people currently living in poverty and 1 million more hovering precariously on the edge, it is clear change is needed to ensure a future where everyone in later life has a dignified and financially secure older age.  

 “We look forward to continuing to work with the Commission as it develops its final recommendations.”

Charities call for end of rule locking 70,000 pensioners out of vital financial support

National charity Independent Age and 12 other organisations1 have teamed up to send an open letter to the Secretary of State for Work and Pensions Pat McFadden, calling for an end to the mixed age couples rule. 

The rule, introduced in 2019, could be preventing around 70,000 low-income couples from receiving entitlements specifically for older people until they bothreach State Pension age, leaving affected couples up to £7,000 worse off a year.

As well as the range of organisations calling for change, new polling from Independent Age shows that a large majority of the UK public back ending the rule, with 62% saying that couples where one person is over State Pension age should receive pension-age entitlements2.

Together the organisations are urging the UK Government to reverse the mixed-age couples rule, to allow couples to claim pensioner benefits, like Pension Credit, once the older partner reaches State Pension age.

Data from 2019 shows that 12% of couples who could be eligible for Pension Credit have an age gap of more than 10 years, meaning the older partner may have to wait an extremely long time to access pensioner entitlements, adding to their financial strain. While couples in this situation are eligible to receive Universal Credit, this is paid at a lower rate and is not designed to meet the needs of people over State Pension Age.

In the letter the organisations say the issue is urgent:

‘Nobody should be punished financially because of who they love. Yet as many as 70,000 older people are missing out on the financial safety net designed to protect pensioners, just because of their partner’s age. 

‘This is urgent. With the incoming rise in State Pension age, more and more couples on a low income will face an even longer wait to receive the entitlements they need due to the mixed-age couples rule.’

Independent Age Chief Executive, Joanna Elson CBE said: “Every day we hear from older people struggling to make ends meet, and for thousands of mixed-age couples the system is making that struggle even harder.

“This rule is unfairly locking around 70,000 older people out of vital pension-age support simply because their partner is younger.

“The UK Government has created a flawed system where two people of the same age can be treated completely differently depending on who they love. The financial support they are missing out on could be the difference between heating and eating or paying the rent.

“Twelve organisations have joined us in calling on the UK Government to act now and scrap the mixed-age couples rule, to ensure all older people on a low income get the financial security and dignity they deserve once they reach pension age.”

In the letter the organisations also express concern over ‘the assumption that all younger partners are able to be financially responsible for their household’ and how this ‘does not reflect reality for many couples. In lots of cases, a younger partner will have health conditions or unpaid caring responsibilities that could mean they are unable to work.’

Lynn, 62, and her husband David from Eastbourne have a five-year age gap and have been unable to access the support they need as a result: She said: “David and I met on a blind date. We’ve been married for nearly 24 years.

“Although David is my full-time carer, we’ve had a hard time getting any financial support because he’s five years older than me. We used to receive Employment and Support Allowance, but once my husband reached State Pension age, it stopped.

“David and I trudged around four different places, including the council, to try and find out what we were entitled to and we were told we could claim Pension Credit. But after seven months of receiving Pension Credit, we got a letter saying there had been a mistake and we weren’t entitled to it because we are a mixed-age couple. We were told to apply for Universal Credit instead.

“All this happened when we were in the middle of moving house and our Pension Credit payment was due. I remember thinking: Now what are we going to do? and being so worried as we literally had no money for our move. We just couldn’t understand why we were told we were eligible to claim Pension Credit and then the payments were suddenly stopped.

“For the first time ever, we had to turn to a food bank to get by. If it wasn’t for our children, I don’t know what we’d have done. They helped us get through this very stressful time in our lives.”

Jan Shortt, General Secretary, National Pensioners Convention said: “To treat people differently on the basis of who they fall in love with is nonsense. 

“Mixed age couples are suffering financially because they cannot access the support they need.  Decisions made by the government penalise mixed age couples and this must be addressed to enable them to be financially secure in the future.”

The organisations who have signed the letter alongside Independent Age are:

Age Scotland

Ageing Without Children (AWOC)

Age UK

Civil Service Pensioners Alliance

National Federation of Occupational Pensioners

Northern Irish Commissioner

National Pensioners Convention (NPC)

Re-engage

Unison Retired Members

National Association of Retired Police Officers (NARPO)

Welsh Older People’s Commissioner

Wise Age

For more information on Independent Age’s mixed aged couples campaign, see: 

Mixed-age couples locked out of vital support | Independent Age

Pensioners urged to be alert to Winter Fuel Payment scams

  • Winter Fuel Payments paid in winter 2025 will be recovered from pensioners with income above £35,000
  • Check if your payment will be reclaimed at GOV.UK – you don’t need to contact HM Revenue and Customs (HMRC)
  • Scammers may try to trick customers into handing money over

Pensioners are being warned to be on high alert for scams as the recovery of Winter Fuel Payments begins this month.

Almost two million people are expected to repay their winter 2025 payment due to their annual income being more than £35,000 – for most, an automatic process.

HMRC saw more than 25,000 Winter Fuel Payment scam referrals over the last 12 months and is warning that scammers may now use the recovery process as a hook to use texts, emails and phone calls to target this group.

For most, the payment will be recovered through a change to their PAYE tax code from this month (April 2026) with no need to contact HMRC.

For those in Self Assessment who file online, the payment should be pre-populated in their 2025 to 2026 tax return, due by 31 January 2027. Customers should check and add it manually if it is not shown.

Paper filers will need to add it on their tax return, due by 31 October 2026. 

This applies across the UK – including in Scotland, where the payment is known as the Pension Age Winter Heating Payment and in Northern Ireland, where payments were made by the Department for Work and Pensions on behalf of the Northern Ireland Executive. In all cases, recovery is handled by HMRC.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: ““Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money.

“I’d encourage anyone who’s unsure to use our online tool at GOV.UK to check whether and how their payment will be recovered – there’s no need to call us”

HMRC will never contact people by text or email to ask them to repay their Winter Fuel Payment, or to request bank details.

People can use HMRC’s online checking tool at GOV.UK to see whether their payment will be reclaimed and how.

Reeves: £550 boost for millions of pensioners next year

MORE BUDGET DETAILS ANNOUNCED

  • The Chancellor is expected to announce that 13 million pensioners are set to benefit from an above inflation rise to the State Pension next April.
  • Those on the full rate of the new State Pension are set to receive over £550 a year more.
  • Pensions boost comes ahead of the Budget where the Chancellor will take the fair choices to cut NHS waiting lists, cut national debt and cut the cost of living.  

13 million pensioners are set to see their State Pension increase faster than inflation next April thanks to the Government’s commitment to the Triple Lock.

From next April the rate of the full new State Pension is expected to increase to just over £240 a week.

This is an increase worth over £550 a year, an extra £120 compared to what it would have been if it had been uprated only by inflation. The full basic State Pension is expected to rise by around an extra £440 a year.

Tackling the cost of living is at the centre of this week’s Budget, and this announcement comes following government action to freeze rail fares and prescription fees next year saving working families millions of pounds.  Government is also cracking down on ticket touts that will cut costs for music lovers across Britain.

At the Budget the Chancellor will go even further to bring down bills, tackle inflation, and grip the cost of living.

Chancellor of the Exchequer Rachel Reeves said: “Whether it’s our commitment to the Triple Lock or to rebuilding our NHS to cut waiting lists, we’re supporting pensioners to give them the security in retirement they deserve.  

“At the Budget this week I will set out how we will take the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt and cut the cost of living.”

The government ‘is committed to supporting pensioners’, and this boost will ensure the State Pension remains the foundation of a secure retirement. The Triple Lock guarantees that the State Pension increases annually by the highest of inflation, average earnings growth or 2.5 per cent.

This comes alongside other support for the most vulnerable pensioners through Pension Credit, worth on average £4,300 a year, and Winter Fuel Payments for nine million pensioners in England and Wales with an income of, or below, £35,000 a year.

Heating support for pensioners begins

Financial support to help pensioners heat their homes this winter has started to roll out across the country. Pension Age Winter Heating Payment will provide support to at least 880,000 pensioners to help with heating bills. 

The first payments have been processed and have started to land in accounts. Payments will continue to be made throughout the winter. 

Eligible people of State Pension age will get a payment between £101.70 and £305.10 depending on their circumstances. Most people will receive their payment automatically – no action is needed.  

Everyone who is eligible will receive a letter with details of their payment. 

For pensioners with a taxable income of over £35,000, the payment will be taken back through the tax system during 2026/27. 

Social Justice Secretary, Shirley-Anne Somerville said: “We know that energy costs are too high, and that this will affect households across Scotland this winter.  

“Pension Age Winter Heating Payment will provide vital support for thousands of older people to help heat their homes and manage costs throughout the colder months. 

“People over the age of 66 don’t need to do anything – in the vast majority of cases, the payment will be made automatically to help towards a warmer winter.” 

  • The Scottish Fiscal Commission have forecast that around 1.055 million payments will be made in winter 2025-26, with the number of payments recovered estimated to be 169,000. Fiscal Update: August 2025  
  • Pension Age Winter Heating Payment replaces Winter Fuel Payment in Scotland and will be delivered by Social Security Scotland.

Pension Age Winter Heating Payments

Proposals to support pensioners in Scotland this winter

All pensioners in Scotland with an income of less than £35,000 will receive Pension Age Winter Heating Payments this winter of either £203.40 or £305.10 per household, Social Justice Secretary Shirley-Anne Somerville has confirmed.

This means pensioners in Scotland will be better off compared to those in the rest of the UK.  

Pensioner households with no-one aged 80 or over will receive £203.40, rising to £305.10 for households with someone aged 80 or over.

Following the UK Government’s recent change to winter fuel payments, the Scottish Government will withdraw the current amendment regulations before the Scottish Parliament, which were previously lodged in order to protect pensioners in Scotland against the UK Government’s planned cuts to winter fuel payments.

The move will now see over 720,000 Scottish pensioners benefit.

Ms Somerville said: “The UK Government’s decision to cut the Winter Fuel Payment last winter was a betrayal of millions of pensioners, and their recent U-turn is welcome if belated.

“Following careful consideration of the options available, the Scottish Government will mirror the approach taken by the UK Government.  We will bring forward regulations to ensure that, from this winter onwards, all pensioners will receive either £203.40 or £305.10 per household, depending on age.

“We are in discussion with the UK Government to extend the proposed arrangements in England and Wales to recover payments from those pensioners with an individual income of more than £35,000 through the tax system.

“The intention is that the payment will be recovered automatically, and pensioners will not need to register with HMRC for this or take any further action.

“This approach ensures a higher level of support which those most in need will receive. Over 720,000 Scottish pensioners are estimated to benefit from the higher payment.”

Leading pensioner poverty charity welcomes decision on Pension Age Winter Heating Payment

Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age, said: “We welcome today’s confirmation from the Scottish Government that all older people with an income of less than £35,000 a year will receive the higher rate of Pension Age Winter Heating Payment.

“This decision will provide some comfort to the hundreds of thousands of older people in Scotland who live in fuel poverty. 

“In a compassionate and wealthy society, no one should struggle to stay warm in the winter due to cost. The commitment by the Scottish Government to uprate the PAWHP annually is also welcome and key to ensuring the payment does not lose its value due to inflation. 

“This means the payment will now be worth £203.40 or £305.10 per household, depending on age, with the payment recovered through tax from those with an income over £35,000.  

“We welcome this decision and hope the Scottish Government continues to take steps to reduce financial hardship, including the creation of a strategy to tackle pensioner poverty.”

Heating support for Scotland’s pensioners

Universal Winter Fuel Payments

First Minister John Swinney has confirmed that pensioners in Scotland will receive no less than they would under the new UK Winter Fuel Payment scheme.

During a speech on public service reform and preventative public health measures to ensure Scots live longer, healthier, wealthier lives, the First Minister confirmed further details of the Winter Fuel Payment scheme will be set out in due course and that ‘the Scottish Government will always seek what is best for Scotland’s pensioners’.

The First Minister said: “Prevention is the hard-nosed financial principle behind the decisions we have taken, for example, on the Winter Fuel Payment. The Winter Fuel Payment kept some of the most vulnerable in society warm in winter – it was always the right thing to do but it was also the smart thing to do.

“Smart because it kept people out of hospital, in their own home. It kept them warm and well. And then it was gone. To be quite blunt about it, I don’t believe cutting this winter lifeline was ever going to save a penny because making millions of pensioners poorer makes them also colder and makes them also sicker and that in turn puts up the bill for our social services and our NHS.

“It is an almost textbook definition of a false economy.

“Keeping the Winter Fuel Payment looks after our pensioners, but it also looks after our NHS. That is the sharp financial reality of the prevention principle in action. It is one of the reasons we were so quick to step in to protect pensioners in Scotland as best we could from that wrong decision by the UK Government.

“And now they have seen the error of their ways, my government will once again do right by Scotland’s pensioners.

“I am very happy to confirm that no pensioner in Scotland will receive less than they would under the new UK scheme.

Details will be set out in due course by my Government, but the Scottish Government will always seek what is best for Scotland’s pensioners.”

Charity welcomes launch of Scottish Pension Age Disability Payment

A Scottish charity has welcomed the launch of the Pension Age Disability Payment. From today, the payment is available across all of Scotland for older people living with a disability or health condition.

Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age, said: “With the national rollout of the new Pension Age Disability Payment which replaces Attendance Allowance in Scotland, it’s really important that eligible older people receive this support, and everything else, that they’re entitled to.

“Our Older People’s Economic Wellbeing Index Scotland found that one in four (24%) people in later life with a health condition are not aware of disability related social security payments.  

“This is money for people of State Pension age who are disabled, have a long-term health condition, or are terminally ill. It is not means tested.  

“For older people who think they might be eligible, they can find out more from Independent Age’s new Pension Age Disability Payment guide. This is free and has up to date advice on what the entitlement is and how to claim.

“It is available through the Independent Age website or by calling our free helpline on 0800 319 6789 to request a copy. Our helpline and advice team can also advise any older people who is unsure whether or not they could be eligible for the payment. 

“People currently receiving Attendance Allowance do not need to do anything and will be automatically transferred onto Pension Age Disability Payment by Social Security Scotland. They will continue to receive their payment uninterrupted”  

The payment replaces Attendance Allowance in Scotland.

The 150,000 older people in Scotland who receive Attendance Allowance will be automatically transferred onto Pension Age Disability Payment in a phased process.

Almost 4 million pensioners face being cold at home this winter

3.9 million British pensioners could be facing a cold winter, following research which reveals over a third (36%) of over 65s expect to be too cold at home as temperatures drop.

The study found that over 65s are the most likely to be cold at home of any age group, with more than a fifth (21%) saying they can’t get their house warm on cold days, no matter what they try.

As a result, 34% of pensioners worry the temperature of their house is bad for their health on cold days, and it’s no wonder. The research, conducted by SpeedComfort, reveals that British homes are falling short of recommended healthy temperatures, putting older and vulnerable people at serious risk.

On average, British pensioners anticipate the temperatures inside their homes will drop down to 13.9°C this winter, over six degrees cooler than the World Health Organisation’s recommendations for older and vulnerable people (20°C).

According to Age UK, this drop in living temperatures can make older people more susceptible to infections, disease and viruses, and impact long-term respiratory and musculoskeletal conditions that many already live with.

The new research backs this up, with data confirming that older people are most vulnerable to the mental and physical effects of the cold.

The survey found that half (50%) of over 65s feel physical discomfort because of the drop in temperature – 7% higher than the average UK adult. Almost the same proportion (49%) say it makes them feel down.

On top of this, 46% of older people feel less motivated when cold and almost a quarter (23%) believe they get ill more often when their home is cold.

Wouter Heuterman, CEO of SpeedComfort, comments: “It’s heartbreaking to discover just how many vulnerable older people in Britain will be feeling the effects of the cold this coming winter.

“With temperatures beginning to drop and the cost of bills continuing to rise, the next few months will present a significant challenge to many households across the UK. But, for older and vulnerable people, the prospect of being cold at home this winter is particularly concerning, given the significant associated health risks.  

“We know times are tough, so, if you are over 65 or have a loved one who is, it’s so important to consider alternative ways of keeping warm and safe this winter. To help with this, we’ve put together a guide for staying warm without increasing energy usage this winter.”

Find out how to stay warm on a budget this winter.

Charities respond to Winter Fuel Payment vote defeat at Westminster

In response to the House of Commons voting in favour of cutting the Winter Fuel Payment, Independent Age Chief Executive Joanna Elson, CBE said: “People in later life living in financial hardship will be rightly concerned that, despite mounting public pressure about the impact on older people on the lowest incomes, the UK Government will continue with its plans to means test the Winter Fuel Payment from this year.  It’s clear that making this decision now means many people in later life struggling in poverty will be forced to make dangerous cutbacks.

“The Chancellor still has time to reassess. Even with today’s vote, the UK Government can show it is listening to the concerns of older people in poverty, and delay this policy change until more older people start receiving Pension Credit.

“Boosting take-up is complex and will take time, the latest take-up figures show that up to 1.2 million older people could be missing out on this financial entitlement. They will already be living on a low income as they are eligible for Pension Credit, but now they will have even less money to live on this winter.

“We are also concerned about the large group of older people that just miss out on Pension Credit. Many of them are in financial hardship and do not have enough money to live well, but will still have their income cut at an already challenging time of year with energy prices on the rise.  

“In the short term we hope the UK Government listens to the evidence being shared, and doesn’t means-test the Winter Fuel Payment now.

“Long-term there must be financial security for all of us as we age.

“We urge the UK Government to lead a review where all major parties come together and agree on what an adequate income in older age is, then ensure that everybody receives it so that no one lives in poverty in later life.”

Caroline Abrahams CBE, Charity Director at Age UK said: “We’re deeply disappointed, but not surprised, that the vote to brutally means-test Winter Fuel Payment was passed today.

“As soon as the Government announced it was instructing its MPs to support it this was the inevitable result, but we would like to thank all those in every party who voted against the policy or abstained.

“There’s been a lot of discussion about the Government’s decision, but at heart Age UK’s critique of their policy is really simple: we just don’t think it’s fair to remove the payment from the 2.5 million pensioners on low incomes who badly need it, and to do it so quickly this winter, at the same time as energy bills are rising by 10%. 

“It is crystal clear that there is insufficient time to make any serious impact on the miserably low take-up of Pension Credit before the cold sets in this autumn, and the Government has brought forward no effective measures to support all those whose tiny occupational pensions take them just above the line to claim.

“It’s true they have agreed to extend the Household Support Fund until April and they deserve some credit for that, but the HSF is an all-age fund that you have to apply for, so we know it will only help a small proportion of all the pensioners who will be in need as a result of their policy change.

“The Government has also tried to suggest that the increase in State Pension for older people next year as a result of the Triple Lock means there’s no need to worry about how they will cope now, but that won’t help anyone this winter and most pensioners will not benefit to the extent being suggested – either because they are on the old State Pension which attracts less of an increase, or because they don’t qualify for a full State Pension in the first place.

“The reality is that driving through this policy as the Government is doing will make millions of poor pensioners poorer still and we are baffled as to why some Ministers are asserting that this is the right thing to do.

“We and many others are certain that it is not, and that’s why we will continue to stand with the pensioners who can’t afford to lose their payment and campaign for them to be given more Government support. 

“Meanwhile, winter is coming and we fear it will be a deeply challenging one for millions of older people who have previously relied on their Winter Fuel Payment to help pay their energy bills and who have no obvious alternative source of funds on which to draw.

“As a charity we will do everything we can to help them, but with so many in need and no extra support on offer from the Government at the moment it’s looking like an incredibly uphill task.”

ALL Scottish Labour MPs voted with the government, but Rebecca Long Bailey was one of more than fifty Labour MPs who refused to vote in favour of the cut. She explained why:

Former Labour Party leader and now independent MP Jeremy Corbyn also voted against the withdrwal of the payment. He said: “I voted against cuts to winter fuel payments. Politics is about choices, and the government has chosen to push pensioners into poverty.

What’s next for means testing? The NHS?

“I will always defend the principle of universalism. That is how we build a fairer society for all.”