The government received criticism over its decision (Image: Getty Images)
The shadow work and pensions secretary wants the Government to backtrack on its move to means-test Winter Fuel Payments, insisting they should “follow their own advice, and unpick this cruel policy”. Mel Stride MP, with a previous stint as head of the Department for Work and Pensions (DWP), is pressuring Labour to throw out the impending cuts poised to impact more than 10 million elderly Britons before the Autumn Budget, slated for October 30.
Criticism has been also been levelled by the Social Security Advisory Committee (SSAC), which provides statutory benefit guidance to ministers; the committee condemned the government’s failure to conduct an impact assessment prior to enacting their plans into law. The expert group underscored that the projected cost-saving from limiting Winter Fuel Payments exclusively to the worst-off pensioners might be negated by an uptick in Pension Credit applications.
Stride voiced his disapproval: “The Government’s own advisory body has stated that Winter Fuel Payment legislation is not fit for purpose. It confirms that leaving almost 10m pensioners out in the cold to pay for union pay rises will have a huge impact on pensioners already in poverty. Many will face the dreadful choice between heating and eating caused by this Labour Government.”
He also cautioned: “Labour have 13 days to reverse this policy before the Budget. Now is the time for them to follow their own advice, and unpick this cruel policy.”
In a pivotal move outlined by Chancellor Rachel Reeves back in July, the UK’s annual heating bill help will now solely target the country’s most impoverished pensioners. This stark change is part of an intense crackdown on what she dubbed a staggering £22 billion “black hole” in public finances, as reported by the Daily Record.
As a result, the number of State Pensioners eligible for the Winter Fuel Payment is poised to dramatically shrink from around 10.8 million to just 1.5 million this year, potentially allowing the Government to claw back £1.5 billion. The substantial cuts mean only those on Pension Credit and other selective means-tested benefits such as Universal Credit or Tax Credits will retain access to the payment, which can range from £200 to £300.
Downing Street has reluctantly confessed that scrapping the universal benefit was “not a decision that we wanted to take”, laying bare the imperative to amend the spiralling public finances. Since the announcement on July 29, there has been a surge of interest in Pension Credit claims, skyrocketing by 152% – a response fuelled by the DWP’s new ad campaign aimed at nudging hundreds of thousands of seniors to verify if they qualify for the annual income top-up, estimated at about £3,900.
In a recent letter to Secretary of State for Work and Pensions, Liz Kendall, the SSAC said “it is not clear how the tension between the two goals of fiscal savings and increased take-up of Pension Credit is resolved within the plans”.
The committee also said it was disappointed no impact assessment of the plans had been made by the UK Government, and suggested it was not convinced by Sir Keir Starmer’s assurances that Pension Credit take-up would prevent a number of pensioners from falling into poverty.
It added: “Given the scale of pensioners who will be affected by this change, and the speed at which it is being introduced, we are not similarly reassured that this will be the case and are of the firm view that a more detailed assessment is urgently required, in particular, on the potential poverty impact.”
The SSAC suggested further safeguards were also needed for pensioners in receipt of other benefits, including Child Tax Credits and disability benefits. Addressing the issue of those on disability benefits the Committee said: “We consider it essential that the Department urgently reviews its current Pension Credit take-up campaign to ensure those receiving Attendance Allowance, Disability Living Allowance and Personal Independence Payment are sufficiently engaged and aware of the options available to them.”
On Child Tax Credits, it said: “If it is not possible to expedite the migration of the 5,000 pensioners in receipt of Child Tax Credits across to Pension Credit, we recommend that you consider ameliorating this concern by introducing an urgent amendment to these regulations providing protection for any pensioners who inadvertently find themselves disadvantaged by responding to the current take-up campaign.”
A Downing Street spokeswoman told the Press Association: “When it comes to winter fuel our position remains that we remain focused on ensuring that those eligible for that support are receiving it.
“There continues to be effort under way in the Department (for Work and Pensions) to ensure that people are applying for that and receiving back-dated payments where eligible.”
