PENSIONSANDSAVINGS.COM

Today is the last opportunity for Parliament to protect the poorest pensioners who are at risk this winter. My Fatal Motion in the House of Lords to cancel the Winter Fuel Payments Statutory Instrument will be debated later today.

It is the speed and timing of this measure, with no notice, no impact assessment and no mitigation or protection for the very poorest, that I am opposing, rather than the continued payments for wealthy pensioners, which I have long opposed. The SLSC has warned against this too due to lack of warning, risk assessment or consultation.

This is the last chance for Parliamentarians to protect the very poorest pensioners, who are about to lose a few hundred pounds that they have relied on for years, to help with their winter fuel bills.

I know that this motion is highly unusual and has seldom been successful in the past.  I know that many colleagues disapprove of this and would much rather I did not press this Motion.  Believe me, I wish that I did not need to as well. But I hope we can find a better way to reduce Winter Fuel Payment costs, without putting the very poorest pensioners at risk.  

I have never been a supporter of the tax-free Winter Fuel Payments, ever since they were introduced in 1997.  They should always have been part of the taxable state pension. I fully agree with taking them away from pensioners who don’t need the money. My actions are nothing to do with political arguments.  This is about policy and risk to frail, elderly people who cannot defend themselves.

If taking the Winter Fuel Payment away from those who don’t need it, means also taking it from millions who desperately do need it, just to show some in-year savings, then the policy choice is absolutely wrong.

Summary of my reasoning

This measure takes £200 or £300 away from the POOREST PENSIONERS.  I’m afraid it is simply not true that the Government is targeting the payments at those who need it most.  The very poorest pensioners are two groups who are (a) over 800,000 pensioners eligible for Pension Credit but not claiming it (b) the unknown number, but possibly up to 2 million, who are just a bit above the means-test cut-off and don’t qualify and therefore do not receive the thousands of pounds extra support which Pension Credit is a gateway to. Both these groups are offered no mitigation or protection, even though a small proportion may successfully claim Pension Credit in the coming few weeks.

There is no time to ensure protection because this is happening immediately, rather than with proper notice and assessment.

The Government says ‘A full impact assessment has not been produced for this instrument as no, or no significant impact on the private public or voluntary sectors is foreseen’. This statement is irrational, especially as all charities helping older people have begged the Government to delay – AgeUK, Independent Age, Silver Voices and others have warned of the consequences.

This is effectively a cut in State Pension for millions of the poorest pensioners, despite promises the state pension would be protected and would INCREASE.

A triple lock State Pension rise next April does not help pay bills this winter as energy costs rise again. The Basic State Pension increase is worth only around £7 a week extra, (and the higher New State Pension only available to people age 74 and younger will rise around £8.80 a week) starting NEXT April. This will be after the Winter is over and the full benefit will not be paid out till April 2026. This cannot possibly compensate the poorest who are unable to afford to heat their homes THIS winter.

The argument that spending an extra £1.4billion on Winter Fuel Payments this year will crash the economy is patently illogical.

The Government claims this measure was so urgent that no consultation or impact assessment or referral to SSAC was possible.

Pensioners living in Spain, Sweden and other EU countries will still receive their Winter Fuel Payment. To add insult to injury, the Government will still pay the tax-free Winter Fuel Payment money to all those pensioners who live in countries such as Spain or Sweden, across the EU.

I truly cannot think of any rationale that justifies the manner in which this measure has been introduced.  The measure itself is not the issue and a start date of 2025 would allow proper time to find a less damaging way to stop paying to those pensioners who do not need it. So I feel morally bound to ask the House of Lords to carefully consider the lives of the most vulnerable older citizens who need to keep warmer than the rest of us and spend more time in their homes, through this winter.