• PENSIONSANDSAVINGS.COM

    From Ros Altmann:economist and pensions,
    investment and retirement policy expert

  • pensionsandsavings.com

    Winter Fuel Payments votes in Parliament are a chance to reconsider this irresponsible decision

    Winter Fuel Payments votes in Parliament are a chance to reconsider this irresponsible decision

    On Wednesday, I will be asking Peers to agree to cancel these regulations and help protect the most vulnerable who are undoubtedly being put at risk by having money taken away that they need to ensure they can heat their homes this winter.

    Having listened to the Prime Minister ‘s interview attempting to justify the decision, he is clearly not aware of the facts.

    It is simply not the case that those pensioners most in need will continue to get it. The Winter Fuel Payments are not being targeted to ensure the poorest pensioners will not lose the money they need for winter heating.

    Millions of the lowest income pensioners do not get Pension Credit – either because they are in the 880,000 households that could claim but don’t, or are just above the means test cut off. These are the poorest and are at risk of not being able to heat their homes this winter.

    It is also not true that next years triple lock state pension increase will offset the loss of Winter fuel Payments. An extra £6 a week or so from April 2025 up to April 2026 cannot replace hundreds of pounds they needed in November 2024. By the time the increased weekly pension is paid, winter will be over and sadly many pensioners, especially in their eighties, nineties or even older, will have passed away before they see the extra money.

    It is also impossible to justify this decision as being essential to save the national finances or avoid a run on the pound.

    The majority of MPs know this decision is wrong because of the timing and lack of protection for the poorest.  When governments make this kind of inadvertent but potentially dangerous policy error, there should be no shame in reconsidering. Ploughing ahead on the basis of false assurances and inadequate analysis is the wrong choice. Insisting on defending the indefensible to show Ministers are tough is equally wrong.

    On Wednesday I will ask the House of Lords to cancel these regulations. As negative statutory Instrument, it cannot be amended, there is a binary choice to just agree with it or annul it. Therefore passing my so called fatal motion would stop it being enacted.

    Peers do have the power to reject this decision. It should not be about politics. This is about policy and the social interest.

    The aim of this policy is correct and taking tax free benefits from high income pensioners is right. But the measure is being brought in too hastily without enough time to protect the most vulnerable elderly people.

    Delaying it to next year would give an opportunity to plan proper protections to mitigate the danger of pensioners being unable to afford their heating and putting their health at risk .

    The debate will be on Wednesday from about 5pm and if enough colleagues will abstain or vote with me, the damage can be averted.

    The Government  can then consider other ways to save money such as taxing it rather than axing it, or just taking it away from higher rate taxpayers, or keeping it for the over 80s as a one off £300 payment or even a £6 a week addition to their state pension. Even using Council Tax bands would be less dangerous but so far Ministers have dug their heels in and refuse to think again at all.

    I’m so sorry to need to use this obscure and rare Parliamentary procedure but I feel so strongly that this is a dreadful policy error that I believe it is right to try.

    MPs know how wrong this is and I do hope that large numbers refuse to approve these measures.


    18 thoughts on “Winter Fuel Payments votes in Parliament are a chance to reconsider this irresponsible decision

    1. I’m very grateful that you are doing this however I think the option of only giving it only to the over 80’s is unfair towards the younger pensioners many of which are going to suffer due to this very cruel decision.

      1. I agree, as those younger are still not on the equivalent of a living wage. Yes there are many wealthy pensioners I am aware of a few, and to be fair they have tried to hand it back and say that they donate it to charity.

    2. Thank you for doing this. I am stunned the government is taking this decision, which will save less than two-tenths of one percent of government spending. I can only put some of the utterances by representatives of the Labour Party down to ignorance. For instance: Not cutting WFA will lead to market meltdown; we can only afford the Triple Lock if we cut WFA. I wrote to the Chancellor suggesting measures that would mitigate austerity cuts to public services and cuts to the few pensioner benefits, amounting to over £80bn. She did not bother to reply. I think because the Chancellor is wedded, ideologically, to drastic cuts in the welfare bill. The cuts I suggested would have minimal impact on pensioners and the poor and include: a reinstatement of the bank levy; VAT on some financial services, a change in the treatment of capital gains tax, and asking banks to withdraw deposits from the Bank of England (a throwback to the 3007/8 financial crisis), which alone would save £40bn in interest payments by the Treasury. Not to do any of these, but tinker around the edges eith penal cuts to pension benefits and social care is, simply cruel. I hope your motion is successful. Thank you again for your efforts on behalf of pensioners.

    3. Agree with just stopping it for higher rate tax payers, but not just limiting it to over 80s. There are pensioners alone and in their 60s and 70s with serious health conditions.

    4. Thank-you, I hope that they listen, but to propose giving it to the over 80s is still not viable , many younger pensioners my self included are a couple of pounds , even one pound over the threshold and will struggle , £220 a week is a pittance to be expected to live on , Reeves did say that she was going to chase the Covid fraud money, which would fill her so called black hole ,but it’s easier to clobber the pensioners .

    5. I greatful for what you are doing but those people that get pension credit there pension is nearly as much as a full state pension so why should we miss out the pension is not a benefit we have worked for that there’s more people on univereal credit why should they get it and not the pensions he gives money overseas why do they claim so much in expenses that should stop they lied to people just to get the votes and now we have 5 years of this rubbish

    6. Perhaps someone should suggest scrapping the heating allowance for MPs homes? If anyone doesnt need this heating allowance it is surely those people on MPs wages! I dont understand how this was allowed to be given in the first place. What other section of full time high earners have these kind of perks from the Government? And shame of any MP that claims this allowance while the pensioners go without.

    7. I would just like to say as well as over 80s pensioners there are mental heal th pensioner s who are in there 60s70s being cared for in their homes that don’t go out ,

    8. It would make sense to give it to all of us on the old basic state pension which, even with the increase, will be below £10k. That is 74+ or at least 80+. What is also difficult is his silly reasons, and the brutality of how it has been done. That comes as an insult.

    9. Thank you so much for standing up for the elderly and vulnerable who have contributed to this country all their working lives. To withdraw the winter fuel payment with immediate effect not allowing the elderly to plan ahead and budget is absolutely unforgivable. The so called £400 pension rise due to take effect 2025, that the Prime minister keeps harping on about, isn’t going to help pensioners this year! It wasn’t in the Labour manifesto either! Utterly deceitful !

    10. It’s time our state pensions were all the same and not a two tier system requiring some to claim benefits to make up to the same as the new state pension. If they can afford to pay pension credit to all those on basic pension, why not just include it as one already dreadful pension! The worst in the developed world. Other countries look after there elderly

    11. I hope you are successful. It’s been hard enough this last 9yrs suffering loss of my pension from 60-66
      My son and brother helped me financially. I paid my contributions in my own right I shouldn’t of had to rely on men albeit they are family. If that wasn’t bad enough many fifties women will be hit again by abolition of Winter Fiel Payment

    12. Thank you for your common sense and support. As a 71 year old pensioner with arthritis and anaemia I particularly feel the cold and think the Labour party has not considered pensioners who cannot supplement their income and have a limited income such as myself. We will miss the WFA if it is withdrawn and many of us will struggle. I am sure those paying 40% tax will not miss the money but the majority of us who have very small private pensions taking us into the lower tax bracket count every penny!

    13. Thank you for standing up for pensioners, although we now know the vote has gone through to withdraw the payment. Apart from bring deceitful about their intentions, this labour government is taking decisions affecting pensioners which has already begun to suggest we are a drain on society. I refer to the recent stupid remarks by Alexander Cairns who believes we are using his money to pay pensioners and also the young man who recently posted on social media that his parents shouldn’t be on holiday using his inheritance to drink Pina Coladas all day! I read a comment earlier on this page that other countries treat their elderly better than Britain does. I agree. After paying National Insurance for 40 yrs and my partner for 55 yrs, I think we have made a valuable contribution to the welfare pot and should not be made to feel like unwanted members of society. Our contributions haven’t ended there though. For the past 5yrs we have been providing free child care for 2 granddaughters. How many families would suffer if we withdrew that labour? Oops I forgot – we’re not in a union. Don’t under estimate the affect on the economy if both parents could no longer work full time. So I say thank you very much labour for showing how much we are appreciated (not) and setting a poor example to others to use against us as an easy target.

    14. As a single parent who has constantly kept in work but in a variety of jobs to stay in work, I only have the state pension. For some reason it is a bit over the Pension Credit threshold, but I know I will be very hesitant turning on the heating this winter.
      All those years ago If I’d just shouted I’m a single mother, sat back and let the state keep me, I would have been in a better position than I am now. I hope the Lords manage to overturn this awful ruling.

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