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No further pensioner support over winter fuel, No 10 says

September 9, 2024
in Business
4 min read
0


Reuters Prime Minister Sir Keir Starmer at a meeting of the cabinetReuters

Sir Keir Starmer has defended his “tough” decision to cut winter fuel payments

Downing Street has said there are no plans to give further mitigations to pensioners who have lost their winter fuel payment.

Prime Minister Sir Keir Starmer and his cabinet “agreed” on the importance of scaling back the benefit, his spokesperson said.

They said Sir Keir told ministers “tough decisions” were necessary to fix “the foundations of our economy”, at a cabinet meeting.

There is unease among unions and some Labour MPs over the move, ahead of a vote on the policy in Parliament on Tuesday.

The Labour government has a large majority and is expected to win the vote, which has been called by the Conservative opposition.

But with speculation about a potential rebellion by some Labour MPs, the vote will be another early test of the prime minister’s authority, following Labour’s general election win in July.

Ahead of the vote, Chancellor Rachel Reeves addressed MPs’ concerns at a meeting of the Parliamentary Labour Party on Monday evening.

She told MPs she was “not immune to the arguments that many in this room have made”.

However, she said the government’s commitment to the triple lock meant the state pension had risen by around £900 compared with a year ago.

Ms Reeves added: “It is the right thing to do, to target money at a time when finances are so stretched, at people who need them most.”

Ms Reeves and Sir Keir insist the winter fuel payment cut – worth about £1.5bn – is necessary to fill an alleged £22bn “black hole” in the budget left by the previous Conservative government.

The Conservatives say Labour is exaggerating the state of the public finances to lay the ground for tax rises in the October budget.

The winter fuel payment was a universal benefit, meaning it was paid to all pensioners, regardless of their income or wealth.

The government estimates 9.3 million fewer pensioners will be able to claim the payment of between £200 and £300 a year. Only those on low incomes who receive certain benefits will be eligible.

Charities and many MPs are concerned about those on modest incomes who will miss out.

But the Social Market Foundation think tank says winter fuel payments go to many well-off pensioners who do not need it and have proposed more targeted support for energy bills.

The vast majority of those eligible will only receive the winter fuel payment if they have first claimed pension credit, a state pension top-up.

The prime minister’s deputy spokesperson said the government would “continue to urge people to check their eligibility” for pension credit and to “support people in making those applications”.

The spokesperson said there had been 38,500 pension credit claims in the last five weeks.

In comparison, there had been 17,900 claims over the five weeks before Ms Reeves announced the payment would only be available to those on certain benefits in July.

The PM’s spokesperson said this was a 115% increase, but added the campaign to get pensioners to sign up was “ongoing” and there was “still more to do”.

A Department for Work and Pensions (DWP) spokesman said they had “surged additional staff” to cover the increase in pension credit calls.

Government figures had suggested there were about 800,000 households who were eligible for pension credit but did not claim it.



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