Keir Starmer could find himself in a difficult position due to the proposed cuts to Winter Fuel Payments, potentially impacting over 10 million pensioners.
The Labour Party conference is set to consider demands to abandon the divisive policy after Unite and the Communications Union put it to vote. Inside the party, there’s been considerable pushback against Starmer’s plans to introduce means testing for the annual payments, which can amount to as much as £300.
At the conference in Liverpool, chants of “save the winter fuel” could be heard. While the Government defends the contentious policy as a necessary measure in light of the £22 billion deficit attributed to the Conservative Party’s tenure, there are stark warnings that the cutbacks could lead to deaths among pensioners. Critics are also pointing out how these cuts are causing extreme anxiety among the elderly.
Unite’s general secretary Sharon Graham has slammed the policy as “cruel” and urged the Prime Minister to own up to the “misstep”. In her words: “The first thing Labour does is to take away the winter fuel allowance from the poorest in our society while they leave the wealthiest people pretty much untouched.”, reports the Mirror.
Government officials claim that the adjustment will save £1.4 billion for the Treasury this fiscal year while still providing support for those pensioners in need. Contrarily, Age UK insists on a policy U-turn, citing that two million pensioners will face hardships in affording basic necessities as a consequence.
Labour MP Rachael Maskell has expressed outrage, cautioning that the decision could lead to an increase in excess deaths among pensioners. However, Commons leader Lucy Powell defended the government’s position, stating that it has been forced to make “some really difficult decisions” that it “did not want to make”.
Introduced in 1997 when Labour came into power, the Winter Fuel Payment is aimed at helping pensioners cover their energy costs during the colder months.
Currently, anyone in England, Wales, and Northern Ireland who is above the state pension age is eligible for the Winter Fuel Payment, income notwithstanding. The eligibility cut-off date has varied, but most recently included individuals born on or before September 24, 1957.
Changes are afoot for those seeking Winter Fuel Payments in England and Wales; going forward, only those over the state pension age and in receipt of certain benefits will qualify.
The amount distributed through Winter Fuel Payments remains unchanged, with figures reaching up to £300 based on individual circumstances.
This policy revision will significantly reduce the number of pensioners eligible for Winter Fuel Payments from approximately 11.4 million to just 1.5 million. This change is projected to save the Treasury about £1.4 billion in this financial year.
Rebels within the party have voiced their concerns regarding these changes.
Labour backbencher Rachael Maskell delivered a fierce critique of the Government’s policy on winter fuel payments, highlighting grave consequences for pensioners in The Telegraph: “We know that being cold leads to stroke, heart attacks, pneumonia, hyperthermia and so much more as the body wrestles to keep warm, and viruses prey on the frail.”
She further expressed her concern, adding: “The fear is that, if we withdraw winter fuel payments for those in fuel poverty, it will lead to excess deaths.”
Meanwhile, discontent simmers among MPs over combined issues. A dissatisfied Labour member remarked on the situation and the potential for dissent: “There’s people right across the political divide who are very unhappy. They need to consider a u-turn over the winter fuel payments. I think this is going to ramp up, there’s a lot of angry people out there.”
In response to the ongoing debate, what has the Government recently declared?
The Chancellor revealed Parliament’s stance, as reported by Rachel Reeves during a conference sidebar: “Conference will vote on that motion which I think includes fiscal rules, a wealth tax and the winter fuel payment.”
Reeves explained the prevailing sentiment among MPs: “But Parliament has already voted on this a couple of weeks ago and there was overwhelming support for restricting winter fuel payments to just those pensioners on pension credit. I think the reason why, in the end, MPs did vote that way is because of a recognition that the triple lock will protect pensioner incomes.”
Ms Reeves highlighted that, thanks to the new Government’s efforts to promote pension credit uptake, there has been a substantial surge in applications with 13,000 people applying in just the last week. This represents a “sharp increase” when compared to the figures from the previous year.
She explained: “Because of the actions this Labour Government is taking, the poorest pensioners will not only keep their winter fuel payment but are likely to get hundreds of pounds extra every year through getting the pension credit which the previous Tory government, although they are now saying they care about pensioner poverty, made no effort to boost the take-up of pension credit.”
Charity Age UK strongly opposes the recent decision regarding Winter Fuel Payment. They have initiated a petition, which has garnered almost 490,000 signatures thus far, demanding the Government to reverse their decision.
A spokesperson for Age UK stated: “Cutting the Winter Fuel Payment this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision.”
In addition, they voiced concern over the impact it would have on pensioners’ finances: “Millions of struggling pensioners won’t receive up to £300 they rely on to pay their bills. We believe as many as 2 million pensioners who find paying their energy bills a real stretch will be seriously hit by this cut.”
Many individuals may not be receiving financial help they’re eligible for. It’s estimated that among the pensioner population, some 880,000 are missing out on pension credit benefits.
To address this, the Government declared a dedicated week meant to inspire action and proclaimed it is essential for all eligible parties to apply. The objective is to make sure that entitled individuals don’t lose out on valuable assistance, such as Winter Fuel Payments.