18 hours Ago By Rachael Burford
A London borough has agreed to fund winter fuel allowance payments for pensioners set to lose it under Government proposals. Elderly residents in Tower Hamlets will receive £175 from the council if they miss out on the benefit, which is being cut under plans by Chancellor Rachel Reeves. The winter fuel payment, worth up to £300, was given to all British pensioners regardless of their income.
But in September MPs voted to means-test it and make it available only to those on certain benefits . Labour has argued the cuts will save around £1.3billion and are needed to address the financial "black hole" it inherited from the Conservatives.
However campaigners, charities and unions have said it will force some pensioners to “choose between heating and eating” during the colder months. Executive Mayor of Tower Hamlets, Lutfur Rahman , said: “Making the Winter Fuel payment means-tested will have a detrimental effect on pensioners who are already facing the rising costs of energy bills. “This creates a risk that pensioners will not turn their heating on for fear of not being able to pay the bills, which is wrong.
“This is why we are stepping in and providing a £175 safety net for those who will be missing out.” Government data shows that 83 per cent of people aged over 80 will lose their Winter Fuel Allowance, rising to 90 per cent of those aged 66 to 79. Around 5,000 people will get the allowance from Tower Hamlets town hall as part of an almost £1million support package from the local authority.
Roughly 127,000 pensioners in the capital are at risk of losing their winter fuel allowance despite being eligible to keep it, an analysis by Age UK London has revealed. They are believed to be elderly Londoners who are all eligible to receive Pension Credit due to their low income, but are not currently claiming it. The Government has vowed that anyone in receipt of Pension Credit will be allowed to keep their winter fuel allowance.
Tower Hamlets council said it will also be launching a multi-lingual campaign aimed at getting the elderly to sign up for the benefit, which closes for applications on December 21. Councillor Saied Ahmed, cabinet member for cost of living , added: “I would firstly encourage all those who are over the age of 66 to claim Pension Credit as it may give you extra income to which you could be entitled, and it can open doors to other benefits such as support with housing costs, Council Tax and heating bills. “Our popular Warm Hubs will also return this winter to provide a safe space for residents to have a hot drink and access support, or just read a book and socialise.
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