Labour’s winter fuel axe backfires as pensioners find loophole to avoid cut

Rachel Reeves’ highly controversial winter fuel payment cut may save hundreds of millions of pounds less than planned, according to a new analysis.

The move, branded “cruel” by Rosie Duffield, who gave up the Labour whip this weekend, will see pensioners lose their winter fuel payment unless they receive Pension Credit or certain other means-tested benefits.

A new analysis seen by the Observer reveals the savings made by the cut may not reach £1.3 billion as planned.

The Chancellor has faced stiff criticism for the plan from within her own party, as well as from opposition voices in response to the move.

As it stands, around 10.8 million people receive winter fuel payments. However, under the new plans, only 1.5 million will receive the support.

However, since the plan was announced there has been a surge in Pension Credit claims – 152 percent – meaning the number of recipients of winter fuel payments could be far higher than expected.

If more Brits successfully claim Pension Credit, that will mitigate the savings the Chancellor is hoping to make.

It’s a race against time for pensioners to make applications for Pension Credit before the deadline.

Current projections suggest there may be 158,000 more claims than expected before the late December cut-off. If that happens, it will cost the Treasury £246 million.

To make matters worse, because being on Pension Credit triggers other benefits, the total bill could be an eye-watering £700m.