Fact Sheet: Winter Fuel Payments

Fact Sheet: Winter Fuel Payments

What is the issue we asked members about?

In July 2024 the new Chancellor of the Exchequer announced that the United Kingdom (UK) Government were going to make changes to the Winter Fuel Payment. The UK Government said that from winter 2024 only people who received certain benefits – such as pension credit – would qualify for the payment. Also, Social Security Scotland will be responsible for Winter Fuel Payments in Scotland from this Winter. The Scottish Government (SG) are introducing a replacement benefit, called Pension Age Winter Heating Payment. They have said that they will be applying the same criteria as the UK Government.

We wanted to learn what our members thought of these proposed changes and what members think the impact will be on disabled people.

Our survey was conducted in August 2024 and had 81 respondents.

 What are the key things we found out?

• 57% of our respondents get the winter fuel payment at the moment.
• 78% said the winter fuel payment helped them to pay their energy bills.
• 5% said it helped them to keep their home warm.
• 75% of respondents said that they were very worried about older disabled people’s ability to pay their energy bills as a result of the changes and the rise in the energy price cap.
• 62% of members said they disagreed with the UK Government’s decision to change the eligibility criteria for the winter fuel payment.
• 49% think the Winter Fuel Payment should be paid to all older people, 37% think eligibility should depend on how much money someone has.
• 57% think the Scottish Government’sG Pension Age Heating Payment should be awarded to everyone who receives the state pension.
• 80% think there should be a disabled persons top-up to the Pension Age Heating payment, due to the additional costs which arise from their impairments.

What did our members tell us?

Respondent profile: who gets winter fuel payment?

57% of respondents told us that they currently receive the winter fuel payment, compared to 33% who do not.10% said that  they were not sure. We asked what the winter fuel payment helped people to do:

• 78% said it helped them pay their energy bills;
• 5% said it helped to keep their home warm;
• 37% use the money to power their independent living equipment;
• 22% said it helped them pay for essentials like food and clothes and;
• 14% said it helped them in another way.

With the government changing the eligibility rules, we wanted to find out how this would impact our members, by applying the criteria decided by the government:

• 5% said they received pension credit;
• 36% said they receive universal credit;
• 8% said they receive income support and;
• 44% said they get employment and support allowance.

Impact of UK Government Changes to Winter Fuel Payment on Disabled People

Our members disagree with the decision to change the eligibility criteria for winter fuel payment, with 62% saying they did not agree.

When asked who should be able to get winter fuel payment the results were as follows:

• 49% think all older people should be eligible to receive winter fuel payment;
• 37% think that eligibility should depend on how much money and older person has and;
• 14% think that only those in receipt of certain benefits like pension credit should be able to get winter fuel payment.

While there is no clear majority in favour of a specific approach to who should be able to receive the payment there is a clear feeling amongst a majority of respondents that the UK Government has made the wrong decision.

We wanted to learn how these changes would impact disabled people. As a result of the changes, 63% are very worried about an older person they know, or themselves being able to keep their home warm this winter. A further 18.5% said they were quite worried with 7.4% saying they were not so worried. Only 11% said they weren’t worried at all about keeping their home warm this winter, when considering the changes made by the UK Government. Crucially – for those who receive winter fuel payment – this worry is compounded by a concern that if they stopped getting winter fuel payment, 60% say that this would affect their ability to live independently.

We asked members how worried they were about the ability of older disabled people to pay their energy bills this winter, because of the changes to Winter Fuel Payment and the 10% rise in the OfGEM Price Cap. 75% told us that they were very worried about the ability of people to be able to afford to pay their bills, with a further 20% saying they were quite worried.

Overwhelmingly, there is huge concern across the disabled community that the combination of higher bills and the loss of winter fuel payment will mean older people can’t afford to pay their energy bills.

When asked what the winter fuel payment changes will mean for older disabled people being able to heat their homes, there is a stark picture created. The most common theme we identified was that disabled people won’t be able to heat their home, or they will choose not to turn the heating on. Examples included:

“They won’t heat their home, may stay in bed for warmth or not eat if they can’t afford it. There would be more hospital appointments or stays due to Ill health.”

“This will all have an adverse effect on peoples wellbeing.  I feel sure this will add to an influx of older people being admitted to hospital. As an older disabled person, if I can’t heat my home, I seize up and then likely to have falls etc.”

“As older disabled folk we always try not to moan and make do and mend as the saying goes. However with the soaring energy prices over the last few years I know I will have to cut back on my heating without the winter fuel payment.”

“It will mean my disabled mum can’t put the heating on as much to heat the flat, she is constantly cold & with withdrawing payments she will be cold alot. She is also really worried about the rise in heating costs EVERY YEAR.”

There was also a widespread view that these changes could actually result in the death of older disabled people. Of the 66 responses we got to this question 18% mentioned death. Quotes included:

“People will not heat their homes and the death rate for winter related illnesses or pneumonia etc will increase drastically. “

“Less heating and eating and more deaths.”

Members also told us that the changes to winter fuel payment will force older disabled people to choose between heating and eating. A choice which was aptly summarised by a respondent who said:

“It means that they are going to have to choose, to either be Warm or Eat. Which, for a Generation that have Paid Tax and National Insurance, all their life, yet have to decide if they should be Warm or have a Bowl of Soup, is an Absolute Disgrace in the 21st Century.”

DES wholeheartedly agrees with its members that no individual should be forced to choose between heating their home and eating. Moreover, 7 respondents explained that the UK government’s decision to means test with such restrictive criteria, means that not everyone who needs the assistance is able to get it and that it feels as if ministers have not taken into account the increased energy costs which disabled people experience.

Previous research by DES, in December 2023, found that 51% of respondents at that time had to make a choice between heating their house and using their independent living equipment.[1]

DES are extremely concerned that this number will increase as a result of the withdrawal of the winter heating payment and the price cap, as demonstrated by the fact that 60% of older disabled people told us that the changes to the winter fuel payment will affect their ability to live independently.

Scottish Government Decisions on Pension Age Winter Heating Payment

The Scottish Government will, from this winter, be responsible for winter heating payments in Scotland through the Pension Age Winter Heating Payment. In the weeks after the announcement by the UK Government, Scottish Ministers confirmed that they would be mirroring the changes made by the UK Government in Scotland, as part of the devolved benefit. 48% of respondents told us that they did not agree at all with the Scottish Governments decision to mirror these changes. A further 26% said they did not agree.

Given that the devolution settlement provides an opportunity for Scotland to diverge from UK decisions and choose an alternative  path, we sought to find out who our members thought should qualify for the Pension Age Winter Heating Payment. The results reflected:

• 57% think all older people who receive the state pension should get the Pension Age Winter heating Payment;
• 31% think only people who are over a certain age (this is older than the state pension age) and who get some types of benefits should qualify for the payment;
• 12% said anyone over a certain age (which is older than the state pension age).

When we compare this to the UK Winter Fuel Payment, there is a prevailing view that a majority of disabled people think that the Scottish Government should offer a more generous eligibility criteria for devolved benefits.

80% of our members believe that there should be a supplement to the Pension Age Heating Payment, to help disabled people with their energy bills due to the additional costs of their impairments.

DES does recognise the considerable financial challenges facing both the UK and Scottish Governments. The loss of funding from the UK Government is very unhelpful and increases financial pressures on the Scottish Government. However, this is perhaps a missed opportunity for the Scottish Government  to expand the compassionate social security system, which communities across Scotland want to see.

FOI Results: Equality Impact Assessment

An FOI published by the DWP on 13 September [2] stated that UK wide 83% of pensioners aged over 80 would lose their entitlement to Winter Fuel Allowance with the corresponding figure for those aged between 66 and 79 is 90%. The government’s own analysis says that those over 80 will be “proportionally worse off financially” due to the higher rate of allowance paid to this group.

For disabled people 71% will lose their entitlement under the UK Government’s proposals. Approximately 53% of those claiming pension are disabled people so they are more likely to be able to keep their winter fuel payment. This decision does not negate the fact that 1.6 million disabled people are losing their winter fuel payments across the UK.

The “impairment energy penalty” for disabled people- next steps

Evidence from various sources – including our own research – shows that disabled people face additional costs by virtue of their impairments. Throughout the energy crisis disabled people have faced ever increasing bills, with some having to reduce the use of their independent living equipment or lifesaving equipment. This means disabled people will have had to choose between turning on the heating and using their electric wheelchair or their electric bed. However, if a disabled person has a nebulizer to help them breathe or a fridge to store their medication then they will automatically face increased energy bills.

This has created a perverse “impairment energy penalty” for disabled people, which compounds the cost of the independence crisis facing disabled people. DES are clear in our view, in that nobody should ever have to choose between their independence and keeping warm.

We share the concerns and worries of our members about the decisions around winter heating payments made by both the UK and Scottish Government’s and what this will mean for older disabled people. Furthermore, disabled people across Scotland face higher standing charges and unit prices under the price cap, than other parts of the UK, which increases the “impairment energy penalty.”

With winter temperatures in Scotland generally being colder than other parts of the UK, we are incredibly worried about the consequences of restricting of winter fuel payments. Disabled lives matter.

This winter we urge the Chancellor of the Exchequer and the Cabinet Secretary for Finance to work together to achieve the following for disabled people across Scotland;

• Fully restore winter heating payments as universal benefits for all older people across the UK.
• For the Scottish Government to introduce a disabled persons supplement to the Pension Age Winter Heating Payment to help older people mitigate the “impairment energy penalty.”
• For the UK Government to eliminate – as far as possible – the “impairment energy penalty” through reform of the Energy Market and regulatory frameworks.
• For both the UK and Scottish Governments to work together to eliminate geographical unfairness in standing charges for everyone.
• Take steps to create a fair energy tariff regime so that disabled people do not have to choose between heating their home and maintaining their independence.

Further information

For further information on this, or other fact sheets, please contact Disability Equality Scotland on:

t: 0141 370 0968          e: research@disabilityequlity.scot

[1] Fact Sheet: Energy Price Cap and Cost of Living – Disability Equality Scotland

[2] Responses to Freedom of Information requests on Equality Impact Assessments produced for targeting Winter Fuel Payment – GOV.UK (www.gov.uk)