Concerns are mounting over how the Government supports pensioners as pressure builds following a series of political setbacks.
The Winter Fuel Payment cut is now being blamed for voter discontent — and may force a wider rethink on pension policy, an expert has warned.
The decision to restrict the Winter Fuel Payment to only the poorest pensioners has sparked a backlash, with some citing the move as a factor in Reform UK’s recent gains in local council elections.
It has reignited debate not only about the payment itself, but also about the future of the state pension triple lock and how intergenerational fairness is managed.
Steven Cameron, Pensions Director at Aegon, said: “It appears that the ‘grey vote’ has once again shown how powerful it can be, with the withdrawal of the Winter Fuel Allowance from all but the least wealthy of pensioners being cited as helping Reform win at local council elections.”
Cameron added that while Labour has committed to retaining the triple lock during this parliament, that promise alone may no longer be enough to win over older voters.
The triple lock ensures that the state pension rises each year by the highest of inflation, average earnings growth, or 2.5 per cent
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He said: “Last year’s loss of the Winter Fuel Allowance has clearly not been forgotten or forgiven, and the Government may need to do more to prove its credentials in supporting pensioners as well as workers.”
The triple lock ensures that the state pension rises each year by the highest of inflation, average earnings growth, or 2.5 per cent.
While it has protected retirees’ incomes through high inflation, some economists have questioned whether it is financially sustainable long-term, particularly as pension rises increasingly bring people over the personal tax threshold.
Cameron warned that some pensioners could soon face income tax even if they rely solely on the full new state pension.
He warned: “There’s a need to face up to the likelihood that in the next two or three years, someone relying solely on the full new state pension might find this rises above the personal allowance.”
Thousands will be impacted by the changesGettyThat prospect risks denting the value of future increases and could undermine public confidence in the triple lock system.
Cameron urged the Government to take a broader view if it revisits pensioner support.
He said: “If there is to be a rethink, we’d urge the Government to look in the round at not just Winter Fuel Allowance eligibility but also the future direction and affordability of state pensions under the triple lock.”
Pensioners are distressed about recent changes to the Winter Fuel Payment allowance GETTY
He added that any changes should consider fairness between generations stating: “Today’s workers are tomorrow’s pensioners, and it’s important that all Government policies—as well as promises from other political parties—are looked at through a lens of intergenerational fairness.”
While Labour has so far stood by its policy decisions, the reaction at the polls may prompt a rethink — particularly if older voters continue to turn away from the party in protest.
