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With Jimmy RiceMoney blog editor and Daniel Dunfordsenior data journalist

The furor over Labor’s cancellation of the universal winter fuel payment earlier this year has been well publicized – but there has been less talk about benefit cuts in each year since 2000.

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

These amounts have remained unchanged for more than two decades, despite periods of high inflation and energy prices that have increased exponentially in recent years.

Analysis by Sky News money blog It shows that the £200 available to those aged 60 to 79 would be worth £370 today if it increased 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 height of the energy price crisis in the winter of 2022-23.

The payment for people over 80 was increased to £300 in April 2003. If this figure had increased with inflation since then it would now be worth over £500.

‘Lack of insight’ in government

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

This significant annual real-terms cut has coincided with pensions rising in real terms over the last 13 years due to the triple lock; this potentially offset some of the consequences of freezing payments.

But charities speaking to Money say vulnerable pensioners are suffering because of the stagnation in payments.

Caroline Abrahams, charity director at Age UK, said: “Energy prices are much higher than a few years ago but the winter fuel payment, designed to support pensioners to cover these costs, has remained the same.

“Of course, recently the current government decided to ruthlessly ration access to the payment, the main requirement for which is that you are currently receiving pension credit.

“The lack of commitment from governments of all colors to pay for winter fuel probably reflects a lack of understanding in Whitehall about the challenges older people on low and modest incomes face in using their money to cover basic needs, particularly in the colder months. They need to stay warm to protect their health .”

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

That’s why the charity says it is “surprising” that the winter fuel payment has not been increased for decades.

‘Increase is a must’

Policy and campaigning officer Dan White said: “Energy bills are rising, energy companies are recording huge profits, poverty is rising – so there is ample evidence that current winter fuel payments are incompatible with the financial reality of disabled pensioners’ lives.

“The increase is not only justified, it is necessary, and we need an energy social tariff targeted at those facing high energy costs, including the disabled and the elderly. If the government does not act accordingly, there will be a humanitarian crisis on our doorstep.”

We asked the government if increasing the winter fuel payment was something it would look into. The Department for Work and Pensions told us:

“We are determined to support pensioners, who are set to see millions of their state pensions increase by up to £1,700 this parliament thanks to our triple-lock commitment.

“More than a million pensioners will continue to receive their winter fuel payment and our drive to increase pension credit uptake has already seen a 152% increase in claims.

“Many others will also benefit from the £150 warm home discount to help with their energy bills over the winter, and our expansion of the household support fund will help with the cost of food, heating and bills.”