9 June 2025
If you are covering the government’s U-turn on the winter fuel payment, please see the following comment from Jon Greer, head of retirement policy at Quilter:
This U-turn underlines how politically and practically difficult it is to unpick long-standing universal benefits like the winter fuel payment. While restricting payments to those on pension credit may have appeared fiscally responsible, it underestimated both the administrative burden and the strength of feeling such changes provoke among pensioners. The government has now accepted that removing support, even for retirees with more wealth, is far more complex in practice than in theory.
Our research with 5,000 UK retirees shows just how sensitive this area is. The average retiree spends £22,140 per year. Of this, £1,806.19 is on energy costs – just under 10%. Similarly, it found that more than a third (35%) of pensioners expressed concern that benefits such as free bus passes and prescriptions could be next in line to be cut. This speaks to a broader unease about the potential erosion of longstanding benefits, particularly in the face of rising living costs.
At the same time, our FOI data revealed that pension credit applications were taking up to 87 working days to process earlier this year. That’s a stark reminder that policy shifts of this nature don’t happen in a vacuum and can place real strain on government systems and create long waits for vulnerable people who urgently need support.
The lesson here is that if government wants to better target support, it must do so with careful planning, adequate resourcing and a clear communication strategy.
Hopefully, lessons have been learned as its understood that HMRC will work closely with representative bodies to ensure the new process is as simple as possible with clear guidance for taxpayers. The risks of getting it wrong are not just political and directly impact people’s lives.
It also throws into sharp relief the growing tension around the state pension triple lock. There is a strong case to say the triple lock is no longer fit for purpose, yet this episode has shown just how radioactive any attempt at reform has become. No political party will want to touch it in the near future, particularly after seeing the speed and scale of the backlash to what was ultimately a more modest policy shift.
