In response to the House of Commons voting in favour of cutting the Winter Fuel Payment, Independent Age Chief Executive Joanna Elson, CBE said: “People in later life living in financial hardship will be rightly concerned that, despite mounting public pressure about the impact on older people on the lowest incomes, the UK Government will continue with its plans to means test the Winter Fuel Payment from this year. It’s clear that making this decision now means many people in later life struggling in poverty will be forced to make dangerous cutbacks.
“The Chancellor still has time to reassess. Even with today’s vote, the UK Government can show it is listening to the concerns of older people in poverty, and delay this policy change until more older people start receiving Pension Credit.
“Boosting take-up is complex and will take time, the latest take-up figures show that up to 1.2 million older people could be missing out on this financial entitlement. They will already be living on a low income as they are eligible for Pension Credit, but now they will have even less money to live on this winter.
“We are also concerned about the large group of older people that just miss out on Pension Credit. Many of them are in financial hardship and do not have enough money to live well, but will still have their income cut at an already challenging time of year with energy prices on the rise.
“In the short term we hope the UK Government listens to the evidence being shared, and doesn’t means-test the Winter Fuel Payment now.
“Long-term there must be financial security for all of us as we age.
“We urge the UK Government to lead a review where all major parties come together and agree on what an adequate income in older age is, then ensure that everybody receives it so that no one lives in poverty in later life.”
Caroline Abrahams CBE, Charity Director at Age UK said: “We’re deeply disappointed, but not surprised, that the vote to brutally means-test Winter Fuel Payment was passed today.
“As soon as the Government announced it was instructing its MPs to support it this was the inevitable result, but we would like to thank all those in every party who voted against the policy or abstained.
“There’s been a lot of discussion about the Government’s decision, but at heart Age UK’s critique of their policy is really simple: we just don’t think it’s fair to remove the payment from the 2.5 million pensioners on low incomes who badly need it, and to do it so quickly this winter, at the same time as energy bills are rising by 10%.
“It is crystal clear that there is insufficient time to make any serious impact on the miserably low take-up of Pension Credit before the cold sets in this autumn, and the Government has brought forward no effective measures to support all those whose tiny occupational pensions take them just above the line to claim.
“It’s true they have agreed to extend the Household Support Fund until April and they deserve some credit for that, but the HSF is an all-age fund that you have to apply for, so we know it will only help a small proportion of all the pensioners who will be in need as a result of their policy change.
“The Government has also tried to suggest that the increase in State Pension for older people next year as a result of the Triple Lock means there’s no need to worry about how they will cope now, but that won’t help anyone this winter and most pensioners will not benefit to the extent being suggested – either because they are on the old State Pension which attracts less of an increase, or because they don’t qualify for a full State Pension in the first place.
“The reality is that driving through this policy as the Government is doing will make millions of poor pensioners poorer still and we are baffled as to why some Ministers are asserting that this is the right thing to do.
“We and many others are certain that it is not, and that’s why we will continue to stand with the pensioners who can’t afford to lose their payment and campaign for them to be given more Government support.
“Meanwhile, winter is coming and we fear it will be a deeply challenging one for millions of older people who have previously relied on their Winter Fuel Payment to help pay their energy bills and who have no obvious alternative source of funds on which to draw.
“As a charity we will do everything we can to help them, but with so many in need and no extra support on offer from the Government at the moment it’s looking like an incredibly uphill task.”
ALL Scottish Labour MPs voted with the government, but Rebecca Long Bailey was one of more than fifty Labour MPs who refused to vote in favour of the cut. She explained why:
Former Labour Party leader and now independent MP Jeremy Corbyn also voted against the withdrwal of the payment. He said: “I voted against cuts to winter fuel payments. Politics is about choices, and the government has chosen to push pensioners into poverty.
What’s next for means testing? The NHS?
“I will always defend the principle of universalism. That is how we build a fairer society for all.”
Reeves was right to cancel this payment. It was a subsidy to the Energy Suppliers who have a house story of exploiting low-income users (by tariffs which are biased to fixed charges and forcing prepayment on not customers).
Reeves has correctly supported a good pension increase, albeit after winter.
Next step must be enforcement of energy cos.servuce obligation.