Scrapping the Winter Fuel Payment will be ‘particularly cruel’ for older people living in rural Britain, warn campaigners.
They say that this group are more likely to be off the gas grid – making them reliant on often expensive heating oil delivered by tanker.
This is particularly an issue for homes in the countryside where properties are likely to be older, draughty, and so difficult to keep warm.
An estimated 4.4 million homes in Britain are not connected to the gas grid and must rely on heating oil – a significant number will be pensioners.
Rachel Reeves announced in July that the allowance – formerly paid to all pensioners – would only be available to those already on pension credit, a move she estimated would save the Treasury £1.4bn a year.
And this week, the Scottish government confirmed it would also be scrapping universal winter fuel payments. North of the border, the Pension Age Winter Heating Payment will instead be means-tested.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said households not connected to the gas grid face greater bill challenges. Official figures show the proportion of people in fuel poverty in rural locations is 15.5 percent versus 12.8 percent in towns and cities.
Figures published by the Warm This Winter Campaign suggested that almost a quarter of off-grid households lived in cold, damp homes – significantly higher than the national average of 16 percent.
Mr Francis said: “These are some of the homes which government schemes need to prioritise for better insulation, but while we wait for more details of ministers’ warm homes plan, taking away financial support from pensioners in off-grid homes is particularly cruel.”
The loss of the winter fuel payment means pensioners will be the only age group to see their bills rise compared to last year, according to the End Fuel Poverty Coalition.
David Bean, of the Countryside Alliance, warned: “The Government’s decision to restrict the winter fuel allowance risks overlooking the higher rates of fuel poverty in rural areas, and the added heating costs faced by households without a gas connection, which are more prevalent in rural Britain.
“Without further action to improve the insulation of rural homes and the competitiveness of the market for heating oil, a blanket policy of restricting the winter fuel allowance to those on pension credit or other means-tested benefits risks further exacerbating the rural premium: the added costs people face simply for living in the countryside.”
Former Lib Dem leader Tim Farron MP told the Telegraph: “This winter, pensioners facing high energy bills must be able to heat their homes. That’s why the winter fuel payment is so important for millions of households across the country.
“The Chancellor’s changes to winter fuel payments will add to those worries. Rural communities have already been hit hard by the cost of living crisis caused by the previous government.”
A government spokesman said: “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.”