'I live off pittance pension – I don't know how Rachel Reeves sleeps at night'

A pensioner has questioned how Chancellor Rachel Reeves “sleeps at night” after stripping the eligibility criteria to receive the Winter Fuel Payment.

To fill a “£22billion hole” in the country’s finances, Ms Reeves announced the payment, which significantly helps with pensioner’s heating bills during the winter, will only be available to those on means-tested benefits and Pension Credit.

However, the move will leave “millions” of people worse off, with charities warning it will increase ineligible pensioners’ energy bills by as much as 15 percent.

In an open letter to Ms Reeves, Jan Smith, 72, from Hampshire, described the change as “cruel and outrageous” that picks on the most vulnerable members of society.

Adding “insult to injury”, Ms Smith said her husband, Terry, now also has to pay tax on his state pension, due to frozen thresholds.

Mr Smith’s income – which Mrs Smith says combines the state pension and a “very small annuity”, now marginally exceeds the personal allowance threshold, which means he must now pay tax on his “little” income.

She then challenged the Chancellor to live on the “pittance” the couple receive.

In the letter, which was shared exclusively with Express.co.uk, Mrs Smith penned: “I am writing in response to your recent announcement that you are taking away the Winter Fuel Allowance for the majority of pensioners. This is an outrage and cruel in the extreme.

“To live a moderate lifestyle a couple, such as myself and my husband, would require an income of £43,100 after tax, outside of London. Unfortunately, we do not come anywhere near that figure and yet you deem it fit to remove the heating allowance, which helps us keep warm in the winter.

“You claim that your aim is to make the people of this country better off. Well, that certainly won’t be the case with my husband and myself, and, no doubt millions like us. Of course, we are collateral damage and don’t matter.

“Although I was glad to see the back of the Treacherous Tories, it appears that the country has gone from the frying pan into the fire. Maybe this is a case of “Be careful what you wish for”, although I am no fan of a Labour Government.

“When you were in opposition you were very good at advocating the rights of the so-called ‘Ordinary People’, but now that you are in power you are proving to be just as disloyal by picking on the most vulnerable members of society, that is, State Pensioners. Of course, I saw through your false narrative. You are just more of the same.”

Mrs Smith questioned: “Why can’t you fill your so-called ‘black hole’ by taxing those most able to contribute? I will tell you why.

“The tax laws are so full of loopholes, and the rich employ advisors and lawyers so that they pay as little as possible. There was an instance where City Fat Cats paid less tax than their cleaners. Anyway, the money you will save from this cruel move is a drop in the ocean and that says it all.

“In addition, I am sure that you will find the money when it comes to MP’s pay raises and other pet projects. You live in another dimension with your fat salaries and expenses that are claimed for every little thing. I challenge you to live on the pittance we receive, courtesy of the government.”

Mrs Smith continued: “To add insult to injury my husband, Terry, now has to pay tax on his State Pension, (his only source, apart from a very small annuity of about £500 per annum) It exceeds the personal allowance of £12,570, so he is liable to pay tax on £1,499 of the total sum of £14,069.

“Putting it another way, a large portion of the triple lock increase applicable from April 2024, will be returned to the Treasury by means of taxation. I am sure that many other people, those of us who do not have a voice, are in the same position. Years ago pensioners received Age Allowance (maybe the very elderly still do), which prevented this very problem.

“No doubt if I receive a reply from your office it will be full of banality and the usual drivel that you politicians are so expert at foisting on the electorate. I lost all hope after you delivered this devastating blow. I reflect on whether you have any compassion, at the very least I do wonder how you sleep at night.”

Responding to the letter, a Government spokesperson told Express.co.uk: “This Government is committed to pensioners: protecting the triple lock, keeping energy bills low through our Warm Homes Plan, and cutting NHS waiting lists – bringing real stability to people’s lives.

“We said we would be honest with the public and, given the dire state of the public finances we have inherited, this Government must take difficult decisions to fix the foundations of the economy.

“In these circumstances, it is right that Winter Fuel Payments are targeted at those in most need, and we will work with Local Authorities to boost the uptake of Pension Credit, reaching the many pensioners who could still benefit from this year’s Winter Fuel Payments.”

The DWP said around 1.3 million households in England and Wales will continue to receive Winter Fuel Payments, due to some other pensioner households being eligible, as well as “expected” extra Pension Credit take-up due to the reform.

What is Pension Credit? 

Pension Credit is a benefit distributed by the Department of Work and Pensions (DWP) targeted to help people over state pension age (currently 66) and on a low income with daily living costs.

It is separate from the state pension and people can receive this even if they have other income, savings, or own their own home.

However, according to the charity Independent Age, it has the lowest take-up of all income-related benefits – despite many people being owed it. So, it might pay for people to check whether they may be entitled to claim. If they do, they may be able to benefit from other means of support, such as council tax discounts.

People may also get extra amounts of the benefit if they have other responsibilities and costs. The top-up and extra amounts are known as ‘Guarantee Credit’.

For more information about Pension Credit rates and eligibility, click here.