Of Jimmy RiceMoney blog editor and Daniel Dunfordsenior data journalist

The furor over the scrapping of the Universal Winter Fuel Payment earlier this year was well-publicised – but a less-discussed cut to the benefit has occurred every year since 2000.

Around 1.3 million people in England and Wales who are entitled to certain means-tested benefits may receive either £200 or £300, down from more than 11 million previously.

These amounts have not changed in more than two decades, despite periods of skyrocketing inflation and energy prices that have risen exponentially in recent years.

Sky News analysis in Money blog shows that the £200 available to people aged 60-79 would be worth £370 today if it had risen in line with inflation.

Had it risen in line with energy prices, it would now be worth almost £1,000 and would have paid more than £1,200 at the peak of the energy price crisis in winter 2022-23.

The over-80 payment was raised to £300 in April 2003. If this had risen with inflation since then, it would be worth more than £500 now.

“Lack of perspective” in government

If it had risen at the same rate as energy prices, it would be worth more than £1,200 now and top £2,000 in 2022-23.

This significant annual reduction in real terms has, over the past 13 years, coincided with increases in pensions in real terms due to the triple lock – potentially offsetting some of the consequences of the pay freeze.

But charities who spoke to Money say vulnerable pensioners are suffering because of stagnant payments.

Caroline Abrahams, charity director at Age UK, said: “Energy prices are much higher than they were a few years ago and yet the Winter Fuel Payment, which was designed to support pensioners to cope these costs, remained the same.

“Most recently, of course, the current government decided to brutally ration access to the pay, with the main qualification for it now being that you get Pension Credit.

“The lack of commitment from governments of all colors to pay for winter fuel undoubtedly reflects a lack of perspective in Whitehall about the difficulties older people on low and modest incomes face in getting their money to cover the basics, especially in the colder months when they need to keep warm to protect their health.”

Disability Rights UK pointed out a report this week an estimated 10,400 terminally ill people die in poverty each year.

It is therefore “amazing”, the charity says, that the winter fuel charge has not been increased for decades.

“A growth is imperative”

Policy and campaigns officer Dan White said: “Energy bills are rising, energy companies are making huge profits, poverty is on the rise, so there is enough evidence that the current winter fuel payment is out of touch with the financial reality of life pensioners with disabilities.

“An increase is not just justified, it is imperative and we need a social energy tariff that targets those facing high energy costs, including the disabled and the elderly. If the government fails to act accordingly, there will be a humanitarian crisis on our doorstep. “

We asked the government if increasing the winter fuel payment would be something they would look at. The Department for Work and Pensions told us:

“We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,700 this parliament through our commitment to the triple lock.

“Over a million pensioners will still receive their winter fuel payment and our efforts to boost pension credit take-up have already seen a 152% increase in claims.

“Many others will also benefit from the £150 take home discount to help with their energy bills over the winter, while our extension to the Household Support Fund will help with the cost of food, heating and bills” .