State pensioners to be handed £175 'safety net' payment after losing Winter Fuel Allowance

Pensioners who lost the Department for Work and Pensions (DWP) £300 Winter Fuel Payment will get £175 through a new scheme. The new payment comes as part of the Winter Emergency Fund amid the Cost of Living crisis.

The Fund is London's Tower Hamlets Council and has been introduced as part of their DWP Household Support Fund scheme, which the Labour Party government has extended. The local authority said: "We have introduced a Winter Emergency Fund to support pensioners who no longer receive the Winter Fuel Payment.

"The scheme will provide £175 to those eligible, as part of a £1m package of support, which includes funds from the government’s Household Support Fund (HSF). Mayor Lutfur Rahman announced a Winter Emergency Fund at a Cabinet meeting last night (Wednesday)."

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National government has made the Winter Fuel Allowance means tested, which will result in only 1.5 million people being eligible - down from 11.4 million when the payment was available to anyone over the age of 66 regardless of financial situation. The council will also work to increase uptake among the estimated 4,500 residents in the borough who are eligible for Pension Credit but are not claiming.

These residents have until 21 December to sign up for Pension Credit – which will make them eligible for both a £200-£300 Winter Fuel Payment from central government, and could boost their annual income on an ongoing basis. Executive Mayor of Tower Hamlets, Lutfur Rahman, said: “Making the Winter Fuel payment means-tested will have a detrimental effect on pensioners who are already facing the rising costs of energy bills.

“This creates a risk that pensioners will not turn their heating on for fear of not being able to pay the bills, which is wrong. This is why we are stepping in and providing a £175 safety net for those who will be missing out.”