Commissioner highlights concerns about impact of next week’s budget on older people

Discussing the upcoming budget on 30 October, Older People’s Commissioner for Wales, Rhian Bowen-Davies, said:

“Many older people have shared with me significant concerns about the impact that means testing the Winter Fuel Payment will have on their health and well-being.

“Scrutiny of the policy not only suggests that over 80% of older people living below or near the poverty line will now miss out on crucial financial support[1], but also calls into question whether the UK Government’s plans will actually deliver the savings projected.[2]

“Furthermore, pension increases highlighted by the UK Government will not be delivered until April next year, and those on the ‘old’ state pension (anyone who reached state pension age before 2016, and the majority of those receiving the state pension in Wales) will see their incomes rise by far lower amounts than those being quoted by the government.

“For these reasons, I would strongly urge the Chancellor to rethink this decision ahead of next week’s budget, to protect older people from its potential impact, which by the Government’s own admission has not been properly assessed.

“Reversing the plans due to come into effect this winter would allow the UK government to demonstrate it has listened to the range of concerns raised by older people and stakeholders and offer opportunities to tackle key issues that have been identified.

“For example, action such as using local data to target older people who are likely to be eligible for financial support, such as Pension Credit, and supporting them to claim what they are entitled to could boost older people’s incomes significantly – in Wales an estimated £117m of Pension Credit went unclaimed last year.

“Similarly, action to address the Pension Credit ‘cliff edge’ – which results in older people who may be above the qualifying threshold by only a few pounds missing out on a wide range of support – would mitigate the impact upon older people on low incomes who would miss out under the current proposals.

“However, until issues like this are resolved, the risks of means testing the Winter Fuel Payment far outweigh any purported benefits.

“It’s important to remember that the scope of the budget is far wider than the Winter Fuel Payment, of course, and I hope that the Chancellor will announce greater investment in health, social care and other public services that play a crucial role in the preventative health agenda and in supporting older people’s independence and quality of life.

“In addition, I would also like to see the budget reflecting commitments made to tackling domestic abuse and wider violence against women and girls. We’ve seen some important progress here in Wales – such as the National Action Plan to Prevent the Abuse of Older People launched last year and the focus on older people as part of the blueprint approach to drive forward the Violence against Women, Domestic Abuse and Sexual Violence Strategy – and it is crucial that we can build on this with the right resources to ensure that older people are recognised as potential victims and services can respond appropriately to the needs of older victim survivors.

“Ultimately, it is vital that the new Government’s first budget does not disproportionately impact upon older people and that we see meaningful investment to reduce significant pressures on services and ensure older people can access the support they might need.”

[1] Shock analysis shows four in every five pensioners struggling with money will see winter fuel payment cut: https://www.independent.co.uk/news/uk/home-news/winter-fuel-payment-age-uk-pension-b2625636.html

[2] The Social Fund Winter Fuel Payments Regulations 2024: letter to the Secretary of State for Work and Pensions: https://www.gov.uk/government/publications/the-social-fund-winter-fuel-payments-regulations-2024