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By means of Jimmy RiceMoney blog editor, and Daniel Dunfordsenior data journalist

The anger caused by Labor scrapping the universal winter fuel payment earlier this year has been well publicized – but a less discussed benefit cut has taken place every year since 2000.

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

These amounts have not changed in more than twenty years, despite periods of sky-high inflation and energy prices that have risen exponentially in recent years.

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

If it had risen in line with energy prices, it would now be worth almost £1,000, and would have paid out more than £1,200 at the peak of the energy price crisis in the winter of 2022-2023.

The benefit for those over 80 was increased to £300 in April 2003. If that had risen with inflation since then, it would now be worth more than £500.

‘Lack of insight’ in the government

If the price had risen as much as energy prices, it would now be worth more than £1,200, and by 2022-2023 it would have even exceeded £2,000.

This significant annual reduction in real terms has coincided with an increase in pensions in real terms over the past thirteen years as a result of the triple lock, potentially offsetting some of the effects of benefit freezes.

But charities who spoke to Money say vulnerable pensioners are suffering from the stagnation in benefits.

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 intended to support pensioners in covering these costs has remained the same.

‘Lately, of course, the current government has decided to brutally ration access to benefits, with the main condition now being that you receive a pension credit.

“The lack of commitment to winter fuel payments by governments of all colors likely reflects a lack of understanding in Whitehall about the difficulties faced by older people on low and modest incomes in stretching their means to cover basic needs , especially during the colder months when they need to stay warm to protect their health.”

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

It is therefore ‘astonishing’, the charity says, that the winter fuel payment has not been increased for decades.

‘Increase is absolutely necessary’

Policy and campaigns officer Dan White said: “Utility bills are rising, energy companies are making huge profits, poverty is increasing, so there is plenty of evidence that the current winter fuel payment is out of touch with the financial realities of disabled pensioners’ lives.

“An increase is not only justified, it is absolutely necessary, and we need a social energy tariff that targets those who face high energy costs, including the disabled and the elderly. If the government fails to act accordingly, a humanitarian crisis is imminent. “

We asked the government if increasing the winter fuel payment was something it 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 increase by up to £1,700 this parliament through our commitment to the triple lock.

‘More than a million pensioners will still receive the winter fuel payment, and our drive to boost the take-up of pension credits has already led to a 152% increase in claims.

“Many others will also benefit from the £150 warm home discount to help pay winter energy bills, while our extension of the Home Help Fund will help with the costs of food, heating and bills.”