Government projections indicate that cuts to the winter fuel allowance will place an additional 50,000 pensioners in relative poverty next year.

Chancellor Rachel Reeves announced earlier this year that the £300 payment would be limited to the poorest pensioners, specifically those eligible for pension credit.

In response, the government initiated a campaign to encourage pensioners to apply for pension credit, but Work and Pensions Secretary Liz Kendall clarified that the poverty estimates do not reflect potential increased uptake of the benefit.

By March 2025, 2026, and 2028, 50,000 more pensioners are expected to fall below the poverty line after housing costs, and this figure could rise to 100,000 by March 2027, 2029, and 2030.

The figures are rounded to the nearest 50,000, meaning small numerical changes can lead to significant headline variations.

Currently, 1.9 million pensioners, about 15% of the total, are in relative poverty, defined as having less than 60% of median income.

The new estimates suggest an increase in pensioner poverty by 0.5 percentage points due to the winter fuel payment cuts.

Kendall affirmed that 120,000 pensioners had been contacted to claim pension credit, stressing that the decision to cut payments was unavoidable in light of a £22bn fiscal shortfall.

Despite criticism from Conservative and Liberal Democrat representatives, the government maintains that targeting aid to the neediest is essential.

In light of the policy, Labour leader Sir Keir Starmer noted in Brazil, where he attended a G20 summit, that pensions would rise by £470 in the spring.

Meanwhile, Scottish Labour leader Anas Sarwar expressed a differing stance, pledging to broaden pension credit eligibility if Labour assumes power.