DWP benefit cut impact unveiled as '100,000 at risk of poverty'

100,000 pensioners will reportedly be pushed into poverty by the time 2027 rolls around due to the Winter Fuel Payment eligibility change that Chancellor Rachel Reeves introduced. The Department for Work and Pensions has now carried out an in-depth study into the effect the drastic cutback will have.

The DWP published its findings this week, revealing 50,000 extra pensioners could find themselves in “relative poverty” by the end of next year in terms of how much cash they’ll have to live on after paying for housing costs. This figure stays relatively consistent, adding an extra 50,000 in 2026.

However, by 2027 it’s estimated 100,000 extra retirees will find themselves struggling to make ends meet and this devastating number is replicated across 2029 and 2030, with a slight drop back to 50,000 in 2028. It’s important to note that these figures are not cumulative, so it’s not showing 450,000 extra pensioners will be in poverty by 2030.

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Instead, it highlights the difference each year how many pensioners would be in poverty if the Winter Fuel Payment changes stay or are disregarded. An additional caveat the Work and Pensions Secretary Liz Kendall is keen to point out is that due to the type of modelling the research was based on, the smallest possible change it can show is 50,000 people.

This model also doesn’t take into account other government policies like the drive for Pension Credit applications. This benefit is meant to help retirees avoid teetering into poverty by providing a pension top-up and has been historically one of the most underclaimed offerings by the DWP.

Changing the Winter Fuel Payment eligibility, so pensioners have to be claiming Pension Credit or other benefits to qualify for the £200 or £300 seasonal payment, has drastically increased the application rates for the benefit and as a result made thousands of more pensioners eligible for not just the Winter Fuel Payment but potentially thousands of pounds in benefits every year.

Kendall’s notes on the study highlighted that applications for Pension Credit have increased by 152%. However, Helen Whately, the Conservative shadow work and pensions secretary, said according to Sky: "Finally, the dam breaks and we get to see what Labour have known all along.

"Labour made a political choice to give inflation-busting pay rises to their union paymasters, and now 100,000 pensioners are going to be plunged into poverty. Now the true impact of their cut has been revealed it's time for Labour to reverse it."