£460 state pension rise ‘cancelled out by inflation and winter fuel cut’

Tue Sep 10 16:51:52 UTC 2024: ## Pensioners Face Real-Terms Cut Despite State Pension Increase

**London, UK** – Despite a planned £460 increase in the state pension next year, pensioners are facing a real-terms cut due to the removal of winter fuel allowance and ongoing inflation, experts warn. The increase, triggered by the triple lock mechanism, will see the annual income for retirees rise from £11,502 to £11,962 in April 2025. However, the combined impact of inflation and the loss of winter fuel payments will effectively negate this gain.

“The promise of a state pension rise will do nothing to help through winter,” commented Lib Dem work and pensions spokesperson Wendy Chamberlain. “Even with this uplift, thousands of pensioners will be seriously worried about the cold winter months ahead.”

The government’s decision to limit the winter fuel payment to only those claiming pension credit and other means-tested benefits is expected to reduce the number of recipients by 10 million. This means most pensioners will lose their entitlement to the up to £300 payment.

Sir Steve Webb, former pensions minister, stated that pensioners need a £250 increase to avoid a real-terms cut, considering inflation. He added that those losing the winter fuel payment would be breaking even or even losing out financially.

Age UK expressed deep disappointment with the government’s decision to withdraw the winter fuel allowance. The charity argues that the state pension increase won’t be enough to offset the costs of heating this winter.

The government has defended its decision, citing the need to make “difficult choices” due to a claimed £22bn blackhole in public finances. However, this justification has been met with skepticism, with former Tory Chancellor Jeremy Hunt dismissing the claim as “spurious.”

This move has sparked concerns about the financial wellbeing of pensioners during the winter months. With the cost of living rising and energy bills soaring, the loss of the winter fuel allowance will place significant strain on many older people.

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