The Budget 2011 revealed a host of measures that will change the way public money is spent as well as what tax credits and deductions will be made to households across the UK.
However, some cuts to key tax credits were kept out of George Osborne’s speech and didn’t appear in the accompanying report.
In particular, the Winter Fuel Payment, or the payment that is currently paid to over 60s to help keep their homes warm during the winter, is to be cut for millions of homes it was revealed today.
Recipients under the age of 80 face cuts of £50, whilst the oldest recipients face cuts of £100 on the current payments.
This is effectively withdrawing the temporary rise in Winter Fuel Payments that was introduced in 2008.
Despite the increasing amount of households struggling to pay their energy bills, the Government is also determined to increase the qualifying age for Winter Fuel Payment from 60 to 66 – with talks of raising it to 75.
At the time, charities such as Help the Aged said that even the £50 extra was not enough to combat the rising costs of energy and the increasing number of older people falling into fuel poverty.
The cuts are likely to be particularly unpopular following the recent Ofgem report that condemned energy suppliers for high prices, confusing tariffs and a lack of transparency that has resulted in 6 out of 10 households not comparing prices on their energy.
Ann Robinson, Director of Consumer Policy at uSwitch, said the cuts will be devastating to households that rely on the extra help from the Government: “The Government needs to understand that pensioners are already concerned about next winter.
“The withdrawal of the extra payments of £50 for those under 80 and £100 for those over 80, will hit pensioners hard, especially the large number that are living in fuel poverty.
“This group in particular needs as much help and support as possible from the Government.”
The volatile weather of the last year was a prime example of when cold weather could become a serious financial pressure for vulnerable citizens:
“Last December was the coldest in 100 years but 55% of people went without heating at some point during the winter to keep their energy costs down while two in ten (20%) regularly went without.
“This year, without extra help, many pensioners will be condemned to another cold miserable winter and may suffer ill health as a result.
“Everyone recognises that the Government does not have a bottomless pit of money, which makes it even more important that any payments, such as the winter fuel payment, are targeted at those who need it the most, such as pensioners in receipt of pension credit.
“If the winter fuel payment is targeted at them rather than being a universal payment, which is enjoyed by all pensioners regardless of their income, this could enable the very poorest or most vulnerable to be given that little bit more.
“Now this payment has been reduced again it’s more important than ever that households manage their energy bills by paying the lowest possible price for their energy and cutting down on the amount they use through sensible energy efficiency steps and measures.”
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