Winter fuel allowance: What the Tory Manifesto pledge REALLY means for you
MILLIONS of middle-class and wealthy pensioners face losing up to £300 as part of Conservative plans to means-test the Winter Fuel Allowance, if Theresa May wins the election, as expected.
Pensioners who receive help to pay energy bills, will be hit to pay for other social measures in the manifesto.
The level at which pensioners could lose the payment under Theresa May has not been confirmed.
However, it's thought the cut-off point will be higher than pension credit, which kicks in if weekly income is below £159.35 for single people or £243.25 for couples.
It's not been confirmed if there will be a cliff-edge where someone a pound above the income threshold will get nothing, or if the allowance will be tapered.
Critics said means-testing the payment risks additional expensive bureaucracy.
There are worries that pensioners who will still be entitled to the Winter Fuel Allowance will not claim it, leaving them considerably worse off.
However, the payment has long been criticised for paying out to everyone over the age of 64 regardless of whether they need it.
In the manifesto the Conservatives say the payment is given "regardless of need, giving money to wealthier pensioners when working people on lower incomes do not get similar support".
Experts have said Theresa May and her party are brave for tackling the policy, which hits the older voter.
Richard Parkin head of pensions policy at Fidelity International, said: "It seems Theresa May is using her strong lead in the opinion polls to kill some of the sacred cows of Tory policy for the elderly.
"The winter fuel payments system has long been criticised as unnecessarily generous to the better off and while means-testing makes sense one wonders what the administration costs of this might be versus the savings made.
"However it’s done, government will need to ensure benefits are “pushed” to recipients as evidence suggests many of those entitled will not claim proactively.
"The Winter Fuel Allowance already varies depending on how old you are, whether you live alone and whether you live at home."
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Mr Parkin added: "One imagines that they will not want to add to this complexity and, given the value of the benefit, I suspect there’ll be a simple earnings cut-off point beyond which you won’t get it at all rather than getting it at a tapered rate.
"Alternatively they could reform all the payment levels into an earnings graduated system.
"Ideally this will be identified through the tax system so that the majority of payments are still made automatically.
"This will not be fool proof as it will inevitably be based on historical data but those who are excluded should be able to appeal."