Is the increase to the Winter Fuel Allowance enough?

Winter Fuel Allowance

By Gareth Hargreaves

In the news

13 March 2008 11:51

The budget was as dull as ditchwater; increased Winter Fuel Allowance for pensioners counterbalanced a punishing list of price hikes for smokers and drinkers. However, are the extra benefits enough?

The over 60s, for example, will receive a substantial increase in their Winter Fuel Allowance, up from £200 to £250, while people aged 80 and over will benefit from an additional £300 to £400.

That may seem like a generous increase, but Age Concern, the UK-based charity that promotes the interests of older people, wanted benefit for over-60s increased by a further £50 to £300 in line with the higher charges of energy companies.

Gordon Lishman, Director General of Age Concern, said:
“An increase to the Winter Fuel Payment this year is a spoonful of sugar to make the bad medicine Budget go down for pensioners. Although this announcement is welcome many older people will feel it is nowhere near enough to address the cocktail of price hikes they have had to swallow this year.”

Energy Bills
While increases to the Winter Fuel Payment this year are good news in the short-term, Lishman points to the need of a "long-term solution for the estimated 2.25 million older people in fuel poverty".

“Energy industry profits and the extra VAT revenue the government receives could have been re-directed into providing targeted support for the poorest pensioners and other groups hit hardest by the hikes. We wanted to see the £200 Winter Fuel Payment raised to at least £300 and significant investment made in energy efficiency schemes, in particular increasing the maximum Warm Front grant available. Through the Energy Bill the government should also make it compulsory for energy companies to offer meaningful social tariffs to vulnerable groups.”

The coming years present the Chancellor with a serious challenge as more and more Britons reach retirement age. The increased strain on health and social care services could mean it's a case of boomers and bust for the Treasury.

Do you think the Chancellor is doing enough for older people? Add your comments below or visit the forums to have your say.