Reeves’ winter fuel axe saving wiped out by rush to claim Pension Credit

CRUEL cuts to winter fuel payments will save just a fraction of the money ministers had originally hoped for — after thousands of worried older people scrambled to claim Pension Credit.

- By Jonathan Walker Whitehall Editor

New figures suggest Labour’s hugely unpopular policy will save less than £230million despite the Treasury’s aim of £1.5billion.

It means Chancellor Rachel Reeves has gained little since her announcement last year that payments of up to £300 would be means-tested, thereby robbing 10 million pensioners of a benefit designed to help them keep warm through the winter.

‘The policy sparked outrage and was largely abandoned when Ms Reeves announced a partial U-turn in June.

‘The Chancellor’s original plan was to link eligibility for winter fuel payments to Pension Credit.

But data from the Department for Work and Pensions suggests that spurred tens of thousands of older people to apply for the benefit.

‘There have been 181,100 successful Pension Credit claims in the year since Ms Reeves’s plan was revealed.

That number is up by 57,200 - a huge jump of 46% — on the previous 12 months.

With the average Pension Credit award worth more than £3,900 a year, those additional claims could cost the Treasury £223million annually.