PARLIAMENTARY DEBATE
Winter Fuel Payment - 10 September 2024 (Commons/Commons Chamber)
Debate Detail
That this House regrets that the Government approved the use of the urgency exemption in section 173 of the Social Security Administration Act 1992 to make and lay the Social Fund Winter Fuel Payment Regulations 2024 before the Secretary of State had referred the Regulations to the Social Security Advisory Committee; further regrets that the Government decided it was not necessary to publish an impact assessment for the Regulations, despite, for example, the evidence which shows that living in a cold home increases the risk of serious illness for vulnerable people and those with disabilities and so restricting eligibility for the Winter Fuel Payment is likely to lead to increased burdens on the National Health Service; regrets that the Government made time to debate the prayer motion from the Official Opposition without the Social Security Advisory Committee’s Report, and Government response; and calls on the Government to lay those papers before Parliament without delay, and to publish a full regulatory and equality impact assessment for these Regulations.
The decision to remove winter fuel payments has come as a complete shock to millions of pensioners—pensioners on as little as £11,500 a year. We have had no adequate explanation as to why this measure is so urgent. We have had no explanation as to why the Government had to invoke the special emergency provisions that allow them to bypass the scrutiny of the Social Security Advisory Committee. We have had no explanation as to why no impact assessments were provided. This is a major policy change that will remove the entitlement for up to 10 million pensioners, including many who are already in poverty. It is a cut worth £7.5 billion over the course of this Parliament. Rushing such a policy through—without taking time to consider the impacts, ensure effective and fair implementation, and allow possible scrutiny—is impossible to justify. This is not the way to make good policy, and this is not good government.
It is worth considering the conclusions of one of the few bodies that have been afforded the opportunity to scrutinise these regulations. The Secondary Legislation Scrutiny Committee in the Lords has been damning in its criticism of the Government’s approach, and I refer the House to my remarks in the previous debate, when I quoted the Committee at some length. As the Committee points out, such measures would normally be subject to the SSAC’s consideration. That is an important part of the process for any legislation of this nature, as I know well from my time as Work and Pensions Secretary. Conveniently, Ministers have claimed that the measure is too urgent to wait for the SSAC’s scrutiny.
We understand that the SSAC is due to consider the measure tomorrow. Can the Minister commit to the House today that the SSAC’s report, and the Government statement responding to any recommendations, will be laid before Parliament before the regulations come into force next week? As the Lords Committee has pointed out, it would seem wholly inappropriate for the SSAC’s views to be taken into account only once the regulations are already in force. In the words of the Committee,
“It remains unclear what the practical impact of any statement might be on regulations which will have already come into effect.”
If the Government do not intend to provide us with the SSAC’s observations before the House rises on Thursday, why were Members asked to consider and vote on the prayer motion against the regulations today, before the SSAC has met?
The lack of any impact assessment means that we are severely hampered in our ability to scrutinise this measure. We were told in the explanatory memorandum that:
“A full Impact Assessment has not been prepared for this instrument because there is no significant new impact on business, charities or voluntary bodies.”
This seems a bold claim to make about a measure that removes hundreds of pounds of support from some of the most vulnerable elderly households in our country.
The guidance from the National Institute for Health and Care Excellence is clear:
“For a vulnerable person, living in a cold home increases their chance of serious illness or death.”
It also notes that
“being housebound increases both the exposure to an underheated home and the cost of heating it.”
So can I ask the Minister on what basis it was concluded that there would be no significant impact from this policy on those charities and organisations that support elderly people or on the wider health and social care system? Will he now commit to the publication of a proper impact assessment?
The only basis for the urgency seems to be a claim that this measure is vital for public finances. We have even been subjected to the Leader of the House claiming that it was needed to avoid a run on the pound. I might ask the Minister to comment on that when he appears at the Dispatch Box. The only real relevance of a measure of this kind to the public finances is its impact on the Government’s fiscal rules. Those fiscal rules are based on levels of debt and borrowing at the end of the Office for Budget Responsibility’s fiscal forecast period in five years’ time. The rules that the Chancellor has claimed she will sign up to were already being met when the Government came into office, according to the OBR’s own forecasts.
The Government could have opted to bring this measure in next year, with greater time for scrutiny, better notice for pensioners, more time to drive up pension credit uptakes and perhaps time to consider whether there were much better ways of going about it. It would still have been a broken promise, and we on this side of the House would still have opposed it, but it would have been a much better way to make policy and it would still have delivered exactly the same savings at the end of the forecast period.
Ministers will claim that they needed to make immediate in-year savings, but that is based entirely on a black hole that they have confected themselves. The real reason this is being rushed is pure politics. The Government want to rush this measure through while they can try to blame it on their predecessors in order to avoid proper scrutiny. There is no need whatsoever for the haste with which this is being done.
The reality is that the Government want to rush this through so that they can blame it on their predecessor and avoid proper scrutiny. There is no need whatsoever for the haste with which this is being done, other than to meet the political ends of the Labour party. They are ripping the plaster off and hoping that the country will have forgotten by the time of the next general election. That is at the heart of it, but we will not forget. We would not have been given the opportunity to debate and vote on this measure without significant pressure from the Opposition and the wider public. This is nothing to do with fiscal responsibility and everything to do with political expediency—no scrutiny, no impact assessment, no notice. This is an appalling way to govern.
The Opposition did not like to be reminded of their legacy when they were in government, but let us have a look, shall we? What do they have to show for their years of reckless overspending? A failed asylum system, prisons at breaking point, more than 1 million people waiting for council homes, 4 million children growing up in poverty, and more than 7.5 million people on NHS waiting lists. This Government and every Member of this House who stood on my party’s manifesto were elected to turn things around.
The triple lock means that pensioners are receiving £900 more this year. Figures released this morning indicate that they may get well over £400 more next year. Over the course of this Parliament, they will get £1,700 more under the state pension. That is the foundation of state support for pensioners.
We have seen clearly how Conservative Members do not like to be reminded of their legacy in government, of the mess in which they left the economy, our public services and the rest of our country after their 14 years in office. This Government and every Labour Member were elected to turn things around.
We are under no illusions. We know it will be a slow and difficult process when the damage goes so deep, but we are determined to fix the foundations of our country so that, on the bedrock of financial stability and fiscal responsibility, we can get our economy growing after 14 years under the Conservatives.
The point of this debate is to focus on why we have to take difficult economic decisions, even if they risk us being unpopular. We know that the universal application of winter fuel payments was already recognised as unfair. In the face of our dire economic inheritance, it is simply unsustainable.
We should be clear that, when the winter fuel payment was introduced in 1997, a higher percentage of pensioners than people of working age were in poverty. That is no longer the case. Put simply, there are now pensioners receiving winter fuel payments who do not need them and that is a reality we cannot afford.
Let me put it in financial terms. Over a quarter of pensioners have wealth of more than £1 million, half have wealth of over £500,000 and a fifth of pensioner households have gross incomes equivalent to £41,600 a year. That is why it is right to means-test winter fuel payment.
Under our approach, those eligible for pension credit will continue to receive winter fuel payments. We want to target winter fuel payments to those on the lowest incomes, which is why we are linking the payment to eligibility for pension credit and other qualifying income-related benefits and tax credits. That is the right approach to help those on the lowest incomes. We are determined to make it as effective as possible by making sure that people who are eligible for pension credit make a claim.
The important point to focus on in this debate is making sure that everyone eligible for pension credit takes up that offer, not only so they receive the benefit of pension credit, but so that we can better target the winter fuel payments, given the financial inheritance that we have. We estimate that 880,000 pensioners are missing out on pension credit to which they are entitled, and frankly the Conservatives failed to act on that for years. That is why it is so important that we are now conducting a campaign to make sure that as many people as possible make a claim.
Our approach is already showing signs of success. The Government have received around 38,500 pension credit claims in the five weeks since the announcement on 29 July. That is more than double the number in the previous five weeks, and we will continue to do all we can to encourage pensioners who are eligible to apply for pension credit. We have used a wide range of media to reach pensioners and key stakeholders, and have been working with voluntary organisations such as Age UK and Citizens Advice, local authorities and the devolved Governments to raise awareness through their networks and channels. The Secretary of State for Work and Pensions is taking the further unprecedented step of writing to 120,000 pensioner households who are in receipt of housing benefit but who are not yet claiming the pension credit that they are likely to be entitled to.
Our national pension credit campaign will run right through until the application deadline on 21 December.
Opposition Members want to know why the legislation is being progressed urgently. I will be really clear: it is urgent because we need to deal urgently with the £22 billion black hole—the huge in-year spending pressure—that we inherited from the Government that they ran. It is crucial that we act quickly to restore responsibility to our public finances and stability to our economy. On top of that, it was important that we made sure that regulations were in place at the start of the qualifying week for winter fuel payments, while wasting no time in doing all we can to raise pension credit take-up.
Pensioners may well be angry at the Conservatives for how little they did to get people to sign up for pension credit while they were in office. Pensioners may well be angry at the Conservatives for leaving the country with a legacy of a £22 billion black hole in the public finances.
We on the Government Benches are committed to protecting the triple lock. That will mean that pensioners on the full new state pension, who have received an extra £900 this year, will, pending the uprating review by the Secretary of State for Work and Pensions this autumn, receive a boost that could be worth well more than £400, so by the end of this Parliament they could be receiving around £1,700 more than they do today.
Conservative Members are keen to play politics with the tough decisions that this Government are taking. They are desperate to take attention away from the fact that, as people across this country know, it is the Conservatives who are to blame for the economic mess we have gained. They created a mess and now they want to criticise us for cleaning it up. If they had governed more responsibly, they might not have been sitting on the Opposition Benches, in opposition to a Government who are fixing the foundations they left to rot.
The Prime Minister has said that we must be prepared to be unpopular if we are to govern responsibly, which means facing up to tough challenges and tackling them head-on. The motion laid by the Opposition sets out several “regrets”, but they have never once shown regret for all the reckless decisions they took and the damage they did to our public services, public finances and economy. Our task now in government is to fix the mess they made and to give our country the chance of the better future we deserve.
Liberal Democrats welcome the opportunity for this debate. We will continue to call on the Government to change course on their planned cut to winter fuel payments. We know the Government have inherited a mess, and we know that at the core of that mess is a legacy of reckless economic mismanagement by the previous Conservative Government.
However, that cannot be allowed to serve as a cover for measures that cause suffering for the most vulnerable in our society. Earlier this afternoon, Liberal Democrats supported the prayer motion to annul the social fund winter fuel payment regulation. Stripping support from many of the poorest pensioners, just when energy bills are set to rise again this winter, is the wrong thing to do, and we have tabled our own early-day motion to reject these plans. It should be noted that the Secondary Legislation Scrutiny Committee in the other place has said that it is
“unconvinced by the reasons given for the urgency attached to laying these Regulations and particularly concerned that this precludes appropriate scrutiny”.
We are supportive of this motion and particularly of the point that there should have been greater scrutiny of the Government’s decision to cut winter fuel payments.
It is well established that there are strong links between living in a cold home and an increase in the risk of serious illness for vulnerable people and those with disabilities.
I and my Liberal Democrat colleagues have listened to our constituents and heard from countless pensioners who are worried about how they will afford their energy bills this winter. Since these cuts have been announced, I have been inundated with local people expressing their disappointment at this decision. That is why the Liberal Democrats have tabled early-day motion 121, calling on the Government to withdraw these plans, and it is why we voted in favour of the prayer motion earlier today. We believe that it is simply wrong to remove winter fuel payments from millions of struggling pensioners.
Last week, I asked the Chancellor if she would give her full support to measures to boost the uptake of pension credit. I welcomed her commitment to work with the Secretary of State for Work and Pensions to maximise the take-up of pension credit by bringing forward the administration of housing benefit and pension credit—
As the Lords Secondary Legislation Scrutiny Committee has highlighted, the DWP has assumed that the uptake of pension credit will increase by just five percentage points, and that will still exclude around 700,000 pensioners. Have the Government made a proper assessment of what the impact will be if uptake of pension credits increases by more than that amount? I continue to call for assurance that the Government will ensure that all those eligible for pension credit claim both the benefit itself and the winter fuel payment.
We will be voting against the scrapping of this stream of support for pensioners. Although we recognise that the Government face difficult choices given the appalling mess left by the Conservative party, the Liberal Democrats will continue to advocate for the necessity of winter fuel payments. The mismanagement of our economy by the outgoing Conservative Government has left formidable challenges and we understand that undoing that damage will not be easy.
It is not right for the consequences of the decisions of the outgoing Conservative Government and this burden to be carried by some of the most vulnerable in our society. Those with the broadest shoulders should carry a heavier burden. Liberal Democrats have set out detailed proposals to tackle fuel poverty and we are calling on the Government to look at them very seriously. That includes steps such as: launching an emergency home energy upgrade programme, with free insulation and heat pumps for low-income households; introducing a social tariff for the most vulnerable to provide targeted energy discounts for vulnerable households; and implementing a proper windfall tax on the super-profits of oil and gas producers and traders, to raise vital revenue. We have also called on the Government to tackle the wider cost of living crisis, including by investing an extra £1 billion a year in our farmers to bring down food prices, increasing the carer’s allowance and expanding it to more carers, and removing the two-child limit and the benefit cap.
More than 2 million pensioners are currently living in poverty. They have had a tremendously difficult time during the cost of living crisis, dealing with record high energy bills and eye-watering food costs. That is why the Liberal Democrats are proud to have introduced the triple lock when we were in government, lifting countless vulnerable pensioners out of poverty, and why we are strongly committed to ensuring it remains in place. Pensioners deserve to have the support and the security of knowing that the triple lock will be there in the long term.
We acknowledge the dire economic situation the new Government have inherited, yet we have heard warning calls from sector representatives, including Age UK, Disability Rights UK and many pensioners themselves, regarding the damage that this cut might cause. As the Government try to clear up the Conservative party’s mess, they must ensure that that does not come at the expense of pensioners and families who will struggle to heat their homes this winter.
When the previous Labour Government left office, Trussell Trust food banks were giving out 40,000 food parcels a year. Last year they gave out 3 million. When we on the Labour side of the House talk about the recklessness of the previous Government, it is not academic. We are talking about taxpayers’ money being poured into ideological gimmicks while children are going to school hungry, working adults are one rent rise away from homelessness and a broken NHS is stalling productivity and failing those who most rely on public services, including our pensioners. We face a £22 billion black hole in the public finances that they covered up and walked away from.
Stability means bringing the economy and the country back from the brink to which the Conservative party knowingly pushed it. No one doubts that this policy is tough, and it is not a measure we want to take, but we have been left a huge bill to pay. Means-testing the winter fuel allowance will allow us to support those pensioners most in need as we take the difficult steps we have to take to right the ship.
Members across this House know that in our communities there are too many pensioners struggling. That is why I welcome this Government’s commitment to the triple lock, under which the state pension has risen by £900 this year and will rise by more than £450 in April. I also support the extension of the warm home discount, worth £150 for more than 1 million low-wage pensioners.
I also support the extension of the household support fund to help the families most in need this winter, as well as the Government’s commitment to introducing tougher regulation to the energy market, which has let customers down for too long. I am working hard with Bracknell Forest council to ensure that pensioners in the Bracknell constituency who are in need but not claiming the support to which they are entitled are identified and encouraged to get help. I urge any pensioner who is concerned about their finances to go to Age UK’s benefits calculator to see what support they may be entitled to.
In the long term, there is only one permanent solution to ending fuel poverty: we must end our dependence on volatile foreign energy markets and deliver lasting energy security. The Conservative party failed to do that in Government, leaving energy bills higher for every household, including those most in need. That is why this Government’s plan to create GB Energy, a new national energy company, is vital. It will bring energy supply back into the hands of the British public and help to get prices back under control. That is the long-term solution to fuel poverty: home-grown, British-controlled power.
Future prosperity does not fall out of the sky. We have to create the conditions for it, and those conditions are sensible spending, bringing debt under control, and encouraging investment. To do those things, we must dig ourselves out of this financial hole, and that means tough choices. This policy is a difficult step—a step that I did not want to take—but it is a step away from the brink towards stability, security and growth. That is why I back it.
It is quite interesting—[Interruption.] No. I have a time limit; the hon. Member has already spoken. It is interesting that there has been so little transparency around finances and the fiscal choices that the Government have chosen to make. There has been no impact assessment, no honesty around the cost of all this to the Exchequer in the long run, and nothing about the administration of the household support fund. How have Labour Ministers made the spurious claim that they have had no choice in this decision? Bear in mind that the Government—so desperate are they to justify this brutal cut—claimed a couple of weeks ago that there would be a “run on the pound” without the decision, which is just extraordinary and speaks to their fiscal ineptitude.
I have a series of questions on the mitigations. First, it is right to encourage more pensioners to take up pension credit where they are entitled to it. I know from my time at the Department for Work and Pensions that many on the Conservative Benches have spent years encouraging pensioners to take up pension credit. We should know how the targeting will work and what the cost will be.
Secondly, in recent days the Government have been spinning, yet again, that those affected by the loss of the winter fuel payment will benefit from an estimated £400 rise in the state pension. Will the Minister confirm what the net real-terms impact will be on overall household incomes for those who are losing the benefit, and will he confirm how it will add up over time and what the actual cost will be?
Thirdly, concerns have been raised throughout the day that if pensioners cannot afford to heat their homes there will be a serious impact on health. We do not have an impact assessment, so can we have some honesty now? What are the costs to the NHS? The Government owe it to the British people to be honest about this. We have heard that the household support fund will be extended, but how exactly will that £500 million be funded? Who will pay for it?
Finally, there are so many unanswered questions. The Government must be honest and answer them. There has been a lack of transparency, with no impact assessment whatsoever. It is right that we hold the Government to account and that they are honest with British pensioners about their intentions, even on the future of the triple lock.
Yes, there is the economic argument, which matters. As the Office for Budget Responsibility and Institute for Fiscal Studies have recognised, this Government inherited public finances in a shocking state, in
“one of the largest in-year overspends outside of the pandemic”
in history—or, as one Member put it earlier, an “accounting error”. Unlike the rapid succession of Conservative Chancellors, our Chancellor has levelled with the British people and been transparent about the nation’s finances. Restoring stability means hard choices. This is not the first, and it will not be the last.
However, it is not the economic case that I wish to emphasise today, but the principled one. Let me make a general point about the arguments we make in politics. Sometimes we politicians can be too quick to hold up our hands and say that we have no choice—the lawyers required this or the economists required that. That can leave voters frustrated: “Why vote if the people we vote for are not in charge, but lawyers or economists are? Can the people we elect not control the things that affect our lives?” To restore trust in politics, we must show that politics matters. That is why it is important that we articulate what we do in terms of principles and choices.
To govern is to choose. Targeting winter fuel payments is a choice. However difficult and necessary, it is the right choice for two principled reasons. The first is about the moral purpose of the policy. Gordon Brown designed the winter fuel payment to ensure that nobody was at home cold because they could not afford to turn on their heating. It was a time when state pension rises were miserly and, as many found, insufficient to heat their homes. But let me note that pensioners were better off after the last Labour Government. One million were lifted out of poverty by 2004. The changes we are debating today do not move from that position. In a time when the state pension has risen by £900, and will rise again by as much as £400, the changes target the winter fuel payment based on the principle of need. That is the right principle.
Let me be clear: I do not believe that taxpayers—
Let us be clear: this has nothing to do with black holes in the economy, which Laura Kuenssberg identified while interviewing the Prime Minister on Sunday as being largely contributed to by inflationary pay increases for the unions—for railway workers and junior doctors. This is a policy dreamed up in 2014 by the present Chancellor of the Exchequer—that is on the record. It is a policy made in No. 11 Downing Street and endorsed by the nation’s undertaker in No. 10. It is cruel, it is heartless, and it is going to lead to deaths this winter, so while I believe that there should be a means test, the manner in which the Government are going about it is profoundly wrong and deeply flawed and will cause untold-of hardship. It has got to change.
Just to conclude, I detect a degree of arrogance on the Government Benches this afternoon. The fact that there are only about 30 Members on those Benches speaks volumes to those outside who thought that Members were going to come and hear this matter being seriously debated. There seems to be a belief that the next election is five years away. The next general election may be five years away, but the next election is next May, and those voting in the county council elections in May—those pensioners and their families—will not forget this.
Today I listened sincerely to contributions from Conservative Members, and this is what I have learned. First, there were several interventions in which they criticised the Government’s efforts to improve the take-up of pension credit. [Interruption.] Well, they did—Members can go and read Hansard if they want to dispute that. There have been several criticisms of that, almost to the point that, when they talk about who is vulnerable, I wonder whether they have a blind spot for some of our most vulnerable constituents.
Secondly, I have learned about Conservative Members’ disdain for hard-working people, because we have learned that, in their spending plans, they intended to reject the pay recommendations of their own pay body.
I want to make a broader point about the winter fuel allowance. The winter fuel allowance was introduced under the last Labour Government in 1997, when the state pension was £3,247 a year. If that had increased at the rate of inflation, today it would be £6,200 a year. Thankfully, it is more than twice that. [Hon. Members: “Because of us.”] Conservative Members say that it is because of them, but, again, they may want to look at the record. In fact, under both the previous Labour Government and the previous Conservative Government, the state pension increased at above the rate of inflation, and I absolutely welcome that. The winter fuel allowance, however, has not increased for 20 years. So the winter fuel allowance, in real terms, has become less and less year after year. The point I am making is that we need to consider our people. If the Conservatives’ argument is that, after 14 years in government, people on the full state pension are £100 away from death and destitution, what have they been doing for 14 years?
We need a new settlement for the economy, and this Government are actually answering the concerns of my constituents, who live in cold, stone-built, badly insulated homes, and who lost out when the previous Government chose to cut the funding available to insulate homes. This Government are setting up Great British Energy, which will help to cut bills over the long term. People are poor and struggling to pay their bills not because we do not give away enough taxpayers’ money in small pockets of benefits here and there. What we need are higher wages and better pensions, and I have been convinced by the Chancellor’s arguments that, under this Government, the pension will rise at or above the rate of inflation year on year, while energy bills will fall.
Finally, my constituents would not thank me if I did not take steps to stabilise the economy, because we need to get NHS waiting lists down and we need—
That takes us to one key issue that we have been discussing today, which is process. The hon. Member for Bishop Auckland seems like an honourable and decent man—at least he used the word “conscience” in this debate, rather than purely political theatre. The point is that when something could lead to thousands of people dying, the Government have not done what they are legally obliged to do—they used some rare exemption requirement—and produce an impact assessment. So we do not know. People who in good conscience want to do the right thing, like the hon. Gentleman, do not know what the impact is. If it was in front of us, and if it validated the Labour party’s previous analysis, and showed that 4,000 people could be going to die, could he really support the measure in good conscience for £1.1 billion when we spend more than £1,200 billion?
The £22 billion black hole is a sort of political theatre from a Government who said they were not going to do politics as theatre and performance, and that they were going to do it properly. In fact, this is a miniscule amount. It is significant, but it is miniscule in the overall scheme of things. A choice has been made and rammed through on a timetable that is not in order and does not follow the normal and proper way of things or allow new Members of Parliament, like the hon. Gentleman, to look at the issue, weigh it up and come to the right conclusion. It is truly shameful. Peter, one of my constituents, is one of 882 people who signed a petition in my constituency against this measure. He and his wife are £12 over the pension credit limit.
Let me return to Peter and his wife. They are not the only people who are worried about this policy. I spent a little time yesterday reading Labour’s manifesto, as I hope Labour Members may have done, and I was touched by the quote from Gary on page 48:
“I’ve never struggled this much to keep warm. I can only afford to heat one room with a small portable heater. Sometimes I sleep in my armchair to save money…it’s no way to live.”
Surely Labour Members, in good conscience, recognise that he is right: it is no way to live. When 9.7 million people voted Labour, they voted for it on the promise of change. I do not think this is the change that Gary and others were led to believe they would receive.
Let me make three points about the situation that pensioners face. First, the pension triple lock is a critical piece of public policy, which makes the state pension genuinely liveable. The triple lock means that pensions increase by £900 in this year alone, and the state pension will increase by over £1,700 over the course of this Parliament. That helps all pensioners. It is absolutely the right decision for the Government to prioritise the pension triple lock, even if that means means-testing the winter fuel allowance.
Secondly, the poorest pensioners will still get the winter fuel allowance. I am reassured by the push to increase the take-up of pension credit.
In taking this step, we must recognise that the country has changed since the winter fuel allowance was introduced. Today, when I look around my constituency, I see that age is no longer the main factor in whether someone can afford to heat their home. It cannot be right that we continue to give the wealthiest pensioners £300 a year. As society changes, we must adjust. We do today’s pensioners a better service by targeting those who need help the most.
I fully comprehend that the system could do with an upgrade. Perhaps we should look at a household cap, as we have with the child benefit payment. Perhaps we could look at allocating per household, rather than per person. Perhaps we could look at ensuring that everyone who is still earning more than their pension through employment can have deferred payments until full retirement. Perhaps we could look at an opt-out scheme for pensioners such as me. I do not need the money; I asked not to take the money. I give the money to charity. I am not better than anybody else—never am I better than anybody else—but I realised that I did not need that money, so I gave it away. Others might want to do the same thing.
It should be direct face-to-face applications for pension credit. There should not be a nine-week wait for the application to be processed. My goodness, people need the money now. The threshold should be raised. The Government and the Minister have said about the £440 that is coming next spring, but pensioners need the money this winter and as soon as possible.
In Northern Ireland, 68% of homes rely on oil-fired boilers for heating. There are high levels of fuel poverty, with 22% of the population currently spending more than 10% of their household income on heating their homes. I think about the women who have a tiny workplace pension from the hours they worked while their children were in school. The women of the Women Against State Pension Inequality Campaign have already been disadvantaged and will pay a further price for not being allowed to save for their needs. I am begging this Government on behalf of my constituents in Strangford not to remove the benefit from everyone in one fell swoop.
I will conclude. The clock for speeches has stopped. I will be respectful of the time, as you would expect, Madam Deputy Speaker.
Those who have worked all their lives deserve to be paid for what they paid in. There is a basic standard, along with women and children go first in the lifeboat: protect those who cannot survive the icy cold. So let us slow down the ship—I look to Labour to make that happen—and veer away from the iceberg, which some Members only see the tip of at the moment, which could be the destruction of the Government before their first journey even begins. Let us correct course and get this right. Let us support the Opposition motion, which reflects the mood and opinion on the Opposition Benches. I hope that the Labour party will realise that it is going the wrong way. We are trying to direct them the right way.
The alternative is that we govern as we campaigned—not just on economic stability but on credibility and truth in politics—and are honest with people about the mess that we are in and, crucially, about the path that we will take to bring about brighter days: to lower waiting times in our NHS, to get more teachers into our schools and more police on our streets, delivering again for people across the country.
Failure to deliver has become the norm; that must change. If we ignore the problems, we cannot fix them. Since records began, no Government front-loaded spending so much to leave the cupboard so bare for the second half of the year. That was an easy path, but not a responsible one. I believe that Opposition Members know that.
Indeed, there have been calls over the years from Conservative and Liberal Democrat Members to target winter fuel payments to those most in need. The Government are combining responsibility with compassion, and I know—
“The winter fuel payment gave me peace of mind that I would be able to heat my home and stay warm during the winter”—
not my words, but those of a constituent, and they are typical of the many comments I have received in my inbox and those I have heard when I have been out and about across my constituency.
In my constituency, there are just 2,138 recipients of pension credit, yet an estimated 18,300 pensioners will lose out this winter. This political choice, because that is what it is, means that those very same pensioners—those 18,300—will lose up to £300 of winter fuel payment; in addition, the energy price cap rise of 10% puts further financial pressure on them of about £149. It impacts pensioners earning as little as £13,000 a year. Contrast that with the inflation-busting pay rises that the Government have handed out. Contrast that with the billions that the Government are spending on GB Energy, a state-run company that will not produce any energy, nor will it cut their bills. What is more, when the vast majority of my pensioners, who are waiting for their annual increase of £460 next year—thanks to our work when we were in government—deduct £300 for losing the winter fuel payment, they will be left with an increase equivalent to just 44p a day: less than the cost of a pint of milk.
I also point out that it was the Conservative party in government that drove up pension credit applications by 73% in just 12 months. It is important that we do not forget that. Pension credit take-up is often an entrenched issue. People in my constituency are often too proud to apply. The process is too complicated: 22 pages, 243 questions and, as we have heard, nine weeks to determine the outcome of the application.
Tackling pension credit take-up is important, but it is not the solution to the crisis that pensioners face today. Only weeks ahead of the winter, they need help now. According to Age UK, across the UK, around 2 million pensioners who badly need the money to stay warm this winter will now not receive it. Losing the winter fuel payment will make it significantly harder for them to keep warm, which undermines their health and wellbeing. As we have heard, pensioners often have serious health conditions and disabilities. Often, they live in older properties, and in the north or in my constituency in the west midlands it is often colder than in other parts of the country. Pensioners are all disproportionately affected, yet there is no sign of an impact assessment, just a Chancellor who, seemingly, storms ahead with her political decision.
There is no time for older people on low incomes to set aside money—if they have it—to help them get through the winter. Being at home in the cold increases the risk of raised blood pressure, stroke, heart attacks and hypothermia. I did not vote for this callous cut earlier today. I will not pick the pockets of those who have worked hard all their lives, doing the right thing by their families and this country. I will continue to speak up for my constituents, who deserve better than this. This is so wrong.
A strong economy needs strong public services, but the problem for the last Government—and the public sector workers who worked for them—was that their public finance strategy rested on
“imposing the biggest real wage cuts in living memory.”
Those are not my words but those of the former permanent secretary to the Treasury, Nicholas Macpherson. The consequences for the services that we all depend on are clear: teaching vacancies have doubled over the past three years, there is an 8% vacancy rate in the NHS and one in 10 999 call handler posts is vacant. We all know the consequences of ambulance delays for pensioners and of cancelled operations and appointments. [Interruption.] Does the right hon. Member for Basildon and Billericay (Mr Holden) wish to make an intervention?
The Conservatives claimed that they did not know what the pay review body recommendations would be, but the School Teachers’ Review Body recommendations were known to Ministers before July. They will know also that the different PRBs tend to make similar recommendations. Why were most of those recommendations not submitted in good time? Because Ministers were late in submitting their evidence, pushing the timetable until after the election. The Office of Manpower Economics has said:
“The work of the PRBs is demand led and essentially non-negotiable—departments set the remits and timetables.”
Shadow Ministers talked about productivity gains, but when it came to NHS negotiations under the last Government, productivity was just a slogan. The cupboard was bare. They had nothing to actually ask for.
The Conservatives suggest that they would have rejected the pay review body recommendations, forgetting that one of the first acts of the Margaret Thatcher Government in 1979 was to accept the recommendations of the Clegg commission on pay comparability. If only the Conservative party had more courage today.
The winter fuel allowance exists because of a Labour Government: a Government who increased the value of those payments fivefold in 13 years, compared with an increase of zero under 14 years of the previous Government—a real-terms cut of 33%.
Now that the winter fuel allowance is to be means-tested, we must boost the uptake of pension credit. I welcome the measures Ministers have announced today, so that the allowance can be protected for the very poorest pensioners.
A number of Labour Members have talked about difficult choices, but the reality is that the Government have run away from difficult choices. They have ducked the difficult choices. The difficult choice would have been to be upfront with voters during the election campaign, to explain why they felt this was necessary, appropriate and, as some have said, morally right, and to trust voters to decide whether to give them that mandate. Instead, they ran away. There are difficult choices, but unfortunately the difficult choices are the ones that they have left our constituents to face.
“My husband has several medical issues this year and I am very worried about the heating situation…I think it is likely that we will cut back on nourishing food.
I cannot believe that a British Government would penalize our generation like this.”
Another constituent, Dawn, wrote:
“Now I fear the winter months, and afraid…of hypothermia.
I personally am just above the threshold to qualify for pension credits. I am a single person claiming state pension and also have a small NHS pension…I can foresee me not using my central heating this winter.”
Those are difficult choices that this Chancellor and this Government have forced on too many of our pensioners, and they are choices that no one should have to make, and particularly not those who have contributed so much to our society.
The Chancellor wants us to believe that this decision suddenly came to her at some point in the run-up to the King’s Speech, some time after the general election, and that it would not have been possible for her to imagine it before polling day. She claimed in July that it was not a decision that she wanted to make. However, as has already been pointed out, in March 2014 she stood at the Opposition Dispatch Box, barely feet away from where I am now, demanding that winter fuel payments be means-tested. In July she said that it was not a decision that she expected to make, yet, miraculously, this year’s Labour manifesto was the first in almost two decades without that specific commitment to protect winter fuel payments.
This is a decision that had been a decade in the making—a decade in the planning. Labour had a decade in which to prepare and get it right, but we are seeing how poorly thought through it was. We cannot have a Social Security Advisory Committee report, and we cannot have an impact assessment. Labour imagined that it could take the money away from pensioners with no impact on our NHS or on charities. This decision is wrong, and it needs to be reversed.
We did not want to make this choice, but some choices are thrust upon us. We on the Labour Benches do not duck choices. This Government are choosing long-term economic stability, economic security and growth. This Government are choosing to maintain the triple lock, which will see the state pension rise year on year. This Government are choosing to do all in their power to make sure that hundreds of thousands of pensioners claim pension credit, and they will do a lot more.
This Government are choosing to move on from the terrible choices of the previous Government. We are choosing a stable, strong economy that will benefit all of the people of this country—all demographics in all regions, the next generation and definitely pensioners.
I have voted against the Government’s policy today for three reasons. First, it is socially regressive and will increase poverty among about 2 million people, nearly 1 million of whom ought to be getting pension credit. The Labour party’s efforts are nowhere near fast enough to avoid increased poverty this winter.
Secondly, the policy is economically innumerate. It will not save the money that the Government argue it will save. There are far better ways to save that money, and to fund the action that is certainly needed to support our public services.
Thirdly, the policy is, frankly, politically inept. I really cannot believe that this Government have spent political capital on making such an unfortunate and unjustifiable political decision.
The winter fuel payment is not, and never was, a perfect policy. I have some sympathy with Members who have spoken today about the inequity of the inclusion error, whereby those who have significant wealth were still receiving the payment, but that has been replaced by a policy with an enormous and dangerous error of exclusion for those 2 million people who will no longer get the support that they need.
There must be a better way, and that requires a better sort of politics. I have been in this Chamber today for the entirety of this debate and the one before on the statutory instrument and I have been very disappointed by the tone of some of the comments, the discussion, the debate and the argumentation that I have heard. It is the sort of politics that puts people off what we do here in this Chamber. This is a classic example of how we need to find ways to speak better about such fundamental issues. There must be an option to find some common ground.
In the spirit of constructive criticism and constructive engagement, I urge the Government to stop, to review, to think again and to work out a way of meeting their need to find funding for public services in such a way that it does not place the burden on those not with the broadest shoulders but effectively with the narrowest. We need to find a way of talking not just about how we deal with fuel subsidies but about making sure that every house is warm and well insulated, so that the money is not just going up the chimney, out of the windows and into the pockets of the energy companies. We must invest for the long term so that every home is warm and every pensioner can keep warm.
Many of those pensioners will be forced to make a tough decision this winter about whether to have the heating on, as energy prices rise and temperatures drop. The Government have admitted to me in a response to a parliamentary question that, shockingly, they believe that 15,744 of my constituents in Epping Forest will have their winter fuel allowance withdrawn by the Labour Government this winter, among the more than 8.6 million pensioners right across England who will have this lifeline withdrawn. This could have so many implications for the health of older people, who spend more time inside their homes when facing conditions, some of which need social care.
There is a real concern that being cold at home may have a detrimental effect on people’s health, as we have heard from some of our medical colleagues today, resulting in respiratory disease, rising blood pressure, an increased risk of strokes and heart attacks and even hypothermia. It is recommended by the UK Health Security Agency that the temperature should be 21°C in living areas and 18°C in bedrooms, which pensioners are going to struggle with this winter.
I am proud that our Conservative Government not only provided winter fuel payments, but extensively supported older people and the country through difficult times during the pandemic and the effects of the war in the Ukraine and, very importantly, that they honoured the Conservative triple lock, meaning that pensioners got the pension increases they deserve.
I am also proud that my party is continuing to defend older people, including through the compassionate Conservative motion that triggered this debate and vote, and that I was proud to sign. The economic decisions we make speak volumes about our values as a society and a country. How the Labour Government respond to this debate on winter fuel payments, and how they respond in the upcoming Budget, is their chance to show where their values truly lie. This Government need to confirm that, now and in the upcoming Budget, their need to save money will not come at the expense of older people and the financial support they need.
This Government really need to think again about their move to cut winter fuel payments, for the sake of the millions of older people who need them and for the implications it will have. If Labour chooses to continue with this heartless policy, my constituents and the constituents of Conservative colleagues can be assured that my party and I will continue to stand up for our pensioners and will maintain our call that the winter fuel payment cut be reversed.
Pensioners in other parts of my constituency are less well off, and I was shocked to find that one in three pensioners in my constituency who are eligible for pension credit, which is roughly 1,000 pensioners—as well as one in three across the UK who are eligible for pension credit, or 880,000—do not claim it.
Over the weekend I held one of my first constituency surgeries at the Whitley community development association café. A staff member told me that they talk to the pensioners who come in about the struggles they face with the cost of living crisis that has unravelled over the last few years. They talk to them about support, but these elderly people respond, “No, I don’t need benefits. I don’t need help.” I recognise that as part of the broader societal stigma around being a recipient of benefits and state aid, which this Government must challenge and defeat.
A compassionate, generous and dignified society recognises when people require help, when people do not require help and when people can help others, and accepts that people sometimes fall on hard times due to an accident, bereavement, illness or other reasons outside their control. For those who need help, it is not undignified to seek it. In fact, it is very important that every pensioner listening to my speech, whether they are in my Earley and Woodley constituency or elsewhere in the UK, knows how to seek help and can seek it if they need it. I am determined that we bring about a dignified and fair means-tested benefit and tax system. Fairness and dignity will keep that system functioning.
Members on both sides of the House have talked about civility. We too often hear about individuals and societal groups being pitted against each other. Pensioners in Earley and Woodley are part of the broader community, and they have children and grandchildren who work in hospitals, who require care, who are supported by teachers, who take buses and trains and, yes, who avail themselves of all the means of support provided to maintain our flourishing and cohesive society. It is unacceptable—
Hundreds of worried constituents have written to me about heating their homes. We have lots of low energy efficiency homes, including one of the biggest park home sites in the country, and I have many park home sites. Fortunately, we managed to find £2.5 million from the previous Government to retrofit some of them, but we still have a lot of people living in fuel-inefficient homes that are hard to retrofit. The worry that this is causing people is the biggest issue I see now, and it shows how out of touch and arrogant the Labour Government are that they do not understand this about pensioners. People who are 75 and on a fixed income may have a little bit of savings or a modest private pension—
I was not a fan of Gordon Brown, who once gave a derisory 75p increase to pensioners, but this policy was a huge success—credit to him. That is why my Government never changed it. For £300 for every pensioner, we give incredible peace of mind that they can put their heating on—
Let me go on a journey and set out the narrative. The Government say there is a debt and imagine there is a black hole they have to fill, so let us have a look at the numbers. They say they have to find £22 billion, so let us cut £1.1 billion but in the same breath add £9 billion for the pensions. At the same time, the red herring that is the Great British Energy flop adds another £8.4 billion. That is a decision that the Government have made, but why would the Labour party let numbers get in the way of a good story? The numbers show the Government have no issue making decisions against pensioners.
I am a proud veteran. In November, on Remembrance Day, we ask people to remember those who paid the ultimate sacrifice in the service of their country. I challenge Labour Members to look at pensioners who have served and say, “We will never forget,” because those pensioners have already been forgotten.
The Chancellor has made a rookie error. She has gone into the Treasury and, with everything in front of her, said, “Do this,” and she has removed the personal view. She has made a political decision—[Interruption.] Of course it is a rookie error. This is a massive error. She has listened and removed people from the equation. When people are removed from politics, it is a road to nowhere. Will the Chancellor go and see the Downing Street chief of staff and ask for permission to reverse this proposal?
As the hon. Member for North Cornwall (Ben Maguire) alluded to, many properties are off-grid. Members may not have realised that 24% of homes across the south-west do not have gas, which is a much cheaper source of energy. They resort to using oil and logs to heat their homes, with the enormous costs that go with them. That is an additional challenge.
Concerns have been raised about those who are single, those in receipt of the older basic state pension, which is not as high as the new state pension, and those with health conditions. The first resident to contact me was a 74-year-old single man, on an older-style pension, who was just outside the bracket for pension credit or any other form of benefit, who was deeply concerned about this winter.
Why are we not looking at alternative ways to deal with this cliff edge? A couple of years ago, the Conservative party proposed the council tax rebate scheme, which used the council tax system as a mechanism to ensure the most vulnerable received support. Single-person households, those where someone had dementia, or households in receipt of council tax credit because they did not have a particularly high income received a discount through the council tax rebate scheme. That system could be replicated with the winter fuel payment, which would offer an alternative way of avoiding that cliff edge for so many residents.
Finally, I know that health has already been mentioned, but I wish to use this as an opportunity to highlight the fact that so many more elderly people will need hospital care this winter, but that is massively impacted and at risk because the Government will not confirm which of the new hospital programmes are going forward. In particular, the emergency and urgent care centre in Plymouth will be vital to providing the healthcare that our older people will need if they are unable to heat their homes or to look after themselves, and to ensuring that they have all the support they need.
Some 68% of households in Carmarthenshire lived in homes with poor energy efficiency in 2022, and 60.4% of households in my Caerfyrddin seat live off the gas grid, often relying on oil as a heat source. But the price of oil is very volatile, and in winter we can see it going up by 20p or 30p a litre, causing uncertainty for people budgeting over the winter.
Not heating a home can have serious consequences. A cold home brings with it a higher risk of stroke, respiratory infection and falls or other injuries. The End Fuel Poverty Coalition estimated that nearly 5,000 excess winter deaths were caused by living in cold homes during the winter of 2022-23. And many older, vulnerable people have higher energy costs due to health reasons.
It is a shame that the Minister of State for Crime, Policing and Fire misspoke earlier this week, as the consideration of other options, such as a social tariff or different ways of means testing, would be welcomed. As constructive criticism, can the Government bring the winter fuel payment within the definition of a taxable income to ensure that pensioners get what they need?
In closing, I call on colleagues to consider whether they can justify—
I make two requests of the Labour Government, although I know that they will both be rejected. First, I ask them to delay implementation to give people more time to prepare. Older people are some of the most financially cautious in our society. They save, they go without, they avoid debt, and they give what they can to their children, their grandchildren and their friends in need. A delay of a year would give people the time to claim pension credit, if eligible, to face the upcoming increase in energy bills and to plan for the next winter.
Secondly, I ask the Government to give an exemption to anyone suffering from a chronic or life-shortening illness. Since this cut was announced, I have heard from so many people, including Di, who emailed me out of concern not for herself, but for her husband Jeff, who suffers from cancer and has to wear three layers of clothes all year round, even in the summer. As Di put it, the decision—and it is a decision by the Prime Minister—is penalising the ill. Her “hubby will suffer” and she is shattered.
We will hear a lot from the Government about hard choices, but if I were asked to choose between heating the homes of the elderly, cancer sufferers and dementia sufferers or giving a no-strings-attached pay rise to train drivers already on nearly £70,000, the choice would be pretty damn obvious to me. But then, ASLEF did not donate to my election campaign.
People say that we can tell a lot about a society by how it treats its most vulnerable and its eldest. If we apply that test to this cut, anyone with a heart will know that it is wrong. I, for one, will never vote to deprive the most vulnerable and our elderly of warmth.
The Government are seeking to raise money, and I get that. They are seeking to do so by getting those with the broader shoulders to take the heaviest load, and I get that too. In order to achieve those goals, the Government are means-testing the winter fuel payment—and there is the rub. By choosing that means test, the Government are indeed taking the winter fuel payment from millionaire pensioners, but they are also taking it from the much less well off and from the not well off at all. In short, they are cutting too deep.
Mistakes happen, but it is how we deal with mistakes that is important. I spent the weekend listening to the Prime Minister using the word “tough” as many times as he possibly could. On the battlefields of the world, which I have been on for the last 25 years, toughness was not one of the things that people looked for in their leaders. The two things they looked for were courage and competence. Courage—moral courage—sometimes means that people need to admit when they have made a mistake and change their plan. However, the people of Spelthorne—and, I suspect, the pensioners across the country—would just settle for a bit of competence. This Government need to get good at governing, and they need to do so quickly.
We have heard very little today from the SNP, because in Scotland the SNP Government have the ability to ameliorate this decision, should it go ahead. It will cost, they estimate, £160 million. I accept that is not buttons; it is not peanuts. However, the last Conservative Government sent £41 billion to Scotland and I think we should be able to find that money in Scotland to help the worst-off in our society. This is a wrong-headed decision, and I am astonished to hear it being described as a principled decision.
In Chichester, we have 24,000 pensioners who are not receiving pension credits, many of whom sit just above the threshold—constituents such as Sherry, who is 80 and registered disabled. She has to maintain an even living temperature to deal with conditions while living in a 100-year-old cottage with poor insulation. Roy and his wife are in their late 80s and have burned through their meagre savings covering their rising energy bills during this cost of living crisis. Vicky writes to me about having to choose between eating and heating in the current winter months because she will not be able to afford to do both.
Our elderly, who have worked hard throughout their lives, are now being abandoned by a Government that should be supporting them when they need help the most. The Liberal Democrats understand the disastrous state our public finances have been left in, due to the fiscal mismanagement of the previous Conservative Government, and we recognise that tough decisions need to be made. However, those decisions should not be made at the expense of our elderly.
The burden of this Conservative fiscal chaos needs to be spread to those with the broadest shoulders, rather than punishing those who have already been hit hardest by it. Cutting the winter fuel allowance in the midst of a cost of living crisis will leave thousands of elderly individuals across Chichester and millions across the UK without the financial support they need to stay warm and healthy this winter. With the price cap due to rise in October, it could be argued that the winter fuel allowance is needed this winter more than ever.
The first reason is that cutting winter fuel payments for poorer pensioners is a political choice, not a necessity, despite what the Leader of the House says. Over the election period, Labour said that it would not cut the winter fuel payment. It has broken its promise to the British people, and they will remember that. Labour also said that it would possibly do more, although it has denied that it would not do more. Today’s measures will save £1 billion, as I outlined in my earlier intervention, but Labour has awarded inflation-busting pay rises of £9 billion to its union paymasters.
As we heard from the Chancellor earlier, the measures that she has announced will cost more than the savings generated from scrapping the winter fuel payments—that is a shambles. The Government have done this at a time when energy bills will increase by 10%, despite the Labour party’s promise in Opposition that it would freeze energy bills—another broken promise that pensioners will have to face this Christmas. The Government have also refused to rule out scrapping the 25% single occupancy discount for pensioners and single people. If that goes ahead, they will deprive pensioners of another £600 on average. That is a political choice and a cost of living bombshell that this Labour Government—supposedly the party of hard-working people—will impose on vulnerable and poorer pensioners across the country.
Labour Members have a choice this afternoon and going forward. They should reverse the cut, stand up for the thousands of people in their constituencies who will be made poorer by the Government, and reject the measures that they outlined earlier. Let me put it this way: 18,000 people in my constituency rely on the winter fuel payment, as do thousands of Labour Members’ constituents. When we go to the ballot box in four years’ time, I look forward to Labour Members standing up and explaining to those pensioners why they made them poorer.
When we put the Chancellor’s decision into context, it is even more staggering. Labour’s deals with the unions, which have cost the taxpayer £14 billion, will see the average salary of train drivers, who are already well paid, rise from £60,000 to £70,000 a year. Help for heating bills is being taken away from the elderly, but the energy price cap is going up by 10% in a few weeks’ time—a double blow for pensioners. Was making it more expensive for pensioners to heat their homes in Labour’s manifesto? It was not. In fact, we were told that Labour would slash fuel poverty and save families hundreds of pounds. That is yet another broken promise, and Labour has been in power for only 10 weeks.
My nan is not the only one to have got in touch with me about this; I have been inundated with letters and emails from hundreds of constituents. Winter is coming, and I strongly urge the Government to change course.
Maggie is 86 and lives in Handbridge in my constituency. She worked as a midwife in the NHS for 40 years, so has a state pension and a small NHS pension. She is not eligible for additional benefits because she was careful with what she earned and saved wisely. Maggie is just above the threshold to be eligible for continued support. She is also a dual cancer survivor, having beaten breast cancer in 2013 and bowel cancer in 2016. Maggie is understandably worried about the consequences of being unable to heat her home this winter. There is also the story of Jackie and John, who live in Audlem. Like many people living in a rural village, they live off grid and do not have access to mains gas. They must rely on heating oil to heat their home.
Pensioners who have paid into the system all their working lives ought to be able to enjoy their retirement with dignity, security and respect. We all know in this House that to govern is to choose. Labour has chosen. It has chosen its union paymasters over our vulnerable pensioner communities. It has let down Maggie, John and Jackie, and many others like them. I urge the Government to listen with compassion and reconsider this political decision.
Impact assessments are done on a stupid basis that does not make any sense, and certainly not in today’s world. If the Opposition Front Benchers had only changed it when they had the opportunity, we would not be in this situation today. But the Labour party has the opportunity to change the way we do impact assessments so that they actually make sense. They should be about not just whether businesses will be impacted to the tune of £5 million, but what matters to people and whether their lives will be impacted by a change in policy. That is the point at which impact assessments should be done.
We do not have an impact assessment for this policy. Do the Labour party and the UK Government know that single women are three times more likely to be missing out on pension credit than single men? Does the Labour party know that pensioners who are black or from Asian ethnic backgrounds are more likely to be in poverty than white pensioners? Does it therefore know that this decision has a differential impact on minority communities? Is that why it has refused to share the impact assessments with us? How will this policy grow the economy? How will ensuring that pensioners, who we know spend in their local communities, have less money to spend in those local shops grow the economy?
The issue with all of this is not whether we have a Tory or a Labour Government. It is that Westminster consistently fails to work for the people of Scotland.
I declare an interest: I am a member of Care Campaign for the Vulnerable, which helps elderly residents who have medical issues or are in care. One of the issues for those elderly people is heating. These are the elderly who fought for the reconstruction of Britain in post-war London and across the UK, had rationing for years and years and paid their taxes. We have built this country on the back of their hard work and sacrifice, only to turn around and say, “No. We did not scrap this policy under 14 years of a Conservative Government, but we are scrapping it as the first thing we do as a Labour Government.”
I am not even blaming the Minister, the hon. Member for Ealing North (James Murray). I knew the Minister and his parents when they were councillors with me in Ealing—true socialists, for the many, not the few. I am not sure that applies here. This is a political choice to give Labour’s union paymasters a pay rise over vulnerable pensioners. This is about paying £8 billion or £9 billion for an energy company that will not generate a single watt of energy. This is about political choice and political will. If we, the Conservatives, could keep a Labour policy for our entire time in government, it is shocking and disheartening that the Labour party is making this choice now.
That rings true, because after 14 years of the Labour party being out in the cold, the pensioners of this country backed Labour into government, under an impression created by the Prime Minister. Only in May 2024, he goaded our Government, asking
“Will the Prime Minister now rule out taking pensioners’ winter fuel payments off them?”—[Official Report, 1 May 2024; Vol. 749, c. 255.]
If we scratch the surface a little bit deeper, though, we find that, on 25 March 2014, the now Chancellor said that
“We are the party who have said that we will cut the winter fuel allowance for the richest pensioners and means-test that benefit to save money”—[Official Report, 25 March 2014; Vol. 578, c. 174-175.]
so this is not a response to a concocted black hole. This was a choice—as Laura Kuenssberg pointed out, it was a choice to pay the unions on the back of our pensioners.
The public are not stupid. The cartoonist Matt sums it up perfectly when he says, “Surprisingly, Robin Hood, nobody likes your plan to steal from pensioners to give to train drivers.” I was in the Chamber last week when the Secretary of State for Energy Security and Net Zero said that Conservative Members should
“show a bit of bravery—even break the Whip and stand out from the crowd.”—[Official Report, 5 September 2024; Vol. 753, c. 461.]
I am disappointed that Labour Members did not take that advice, with only one Labour MP doing so.
The Government say that they are focused on increasing the uptake of pension credit. If all those who are eligible to claim pension credit do so, though, the £1.4 billion that the Treasury is expected to save by means-testing the winter fuel payment will be dwarfed by the increase in the cost of pension credit, so the Government have to admit that, ultimately, they do not actually want all those pensioners to take up pension credit.
Our pensioners deserve better. The fall-back of this Government since they took office is to blame the previous Government for all the unpopular actions they have decided to take. They claim the state of the economy is a reason to remove this vital lifeline for pensioners, but let us be clear about the facts. On a broad range of indicators, the situation they have inherited is significantly less challenging than the one we inherited in 2010. We inherited an economy just out of the deepest recession since 1955. Labour left us with public sector net borrowing at 10.3% of GDP; today it is at 4.4%. Unemployment in 2010 was 7.9%; unemployment now stands at 4.1%.
However, from 2010 onwards, through all these difficult times, we made decisions to protect pensioners, and we made sure to keep the winter fuel payment. It was the right thing to do then, and it is the right thing to do now. I ask the Government to listen to MPs from across the House, including some on their own Benches, and think again.
I stand unashamedly shoulder to shoulder with pensioners in Upper Bann and across the United Kingdom in their opposition to this reckless decision. Our pensioners are being left out in the cold by a Government who promised to restore hope. Where is the compassionate Labour we were promised? Where is the restored hope? What hope do pensioners have in Upper Bann? What hope do they have that this Government might listen, care for them and stop neglecting them? They now feel like they are the target.
To be fair, this Government have offered pensioners something to keep them busy through the cold winter months by suggesting they take a stab at completing the pension credit application form—a form with 243 questions across 24 pages, with a delay of nine weeks for a decision. They are asking pensioners to navigate a bureaucratic nightmare just to receive a fraction of what they need to survive. I stand here today united with my constituents and united with pensioners across this country in opposition to this baseless decision.
In conclusion, no one is arguing that millionaires should get the winter fuel payment, but over 6 million of the pensioners set to be impacted by this decision are living on the state pension. They are living on just over £11,000 a year. Could anyone in this House live on £11,000 a year?
The Treasury, very helpfully—it is a shame Ministers did not read it—did a piece of work last year looking at the risks of rural poverty and the higher risk of rural areas falling into real poverty. The Treasury’s own figures showed that the average household at risk of poverty in rural areas needs an extra £800; or in layman’s terms, there is a two and a half times—or 250%—higher risk of rural houses falling into rural poverty. So I find it completely extraordinary that Labour, which in government professes to care about poverty and berated my party when in government about the risks of rural poverty and of pensioner poverty, has decided as their first act to punish people in rural areas.
It is because of those rural risks that, earlier this year, I and a number of colleagues set up a fair funding alliance, supported by Action with Communities in Rural England, the Countryside Alliance and rural bodies. Higher fuel and energy prices are hitting rural areas, and we would have hoped that this Government might have listened. I am proud that the Conservative party in government upgraded pensions, protected the triple lock and took 200,000 pensioners out of poverty.
The point is that this party, the Conservative party, protected pensioners, protected the triple lock and lifted 200,000 people out of poverty, but we see this Labour Government make this decision. The Minister put it very clearly earlier. This is an attack on people who own their own homes, people who have retired in rural areas and those just over the threshold, and in Labour world they are millionaires. This will not be forgotten by people in my constituency, the low-income rural pensioners who have saved up to be able to afford their own home and are now being clobbered. It is unfair, it is unjust, it is unjustifiable, it is unprecedented, and I urge and beg Ministers to think again.
Citizens Advice, Age UK and hundreds of charities across the UK have also come out against these proposals, warning that low-income households that are already struggling to make ends meet will be forced this winter into impossible choices between heating their homes or putting food on the table. It is incredibly disappointing to see the hon. Member for Shipley (Anna Dixon) from the Bradford district, vote with the Government this evening, ensuring that she does not stand up for the wider Bradford district, as I will be doing.
It is Labour’s choice that we are putting pensioners at risk as a result of this decision, and Labour’s choice that is putting my constituents, pensioners who are vulnerable, in the dire position of having to decide whether they heat their homes or put food on the table this winter. I only hope that quick changes will be made to ensure that pensioners are looked after in the run-up to winter.
I will not be supporting this measure because it is incompetent. It is incompetent operationally, because it does not take cognisance of co-morbidities in already frail people, or of what will happen to those people as they budget to try to accommodate this unnecessary cut to their income. It is fiscally incompetent, because it does not take cognisance of whole-system costs—people presenting at hospital or going into care prematurely because they cannot stay at home, because of what they do to try to make ends meet. It does not take account of the cost to the supposed saving of £1.5 billion once pension credit is taken up fully, rendering the saving meaningless. It is morally incompetent because, as we have heard from professionals in the Chamber, as a result of this decision, people will die.
Moreover, this measure was not in the Labour party manifesto, which is reprehensible, and it ignores the cultural sensitivities of older people, many of whom find asking for help anathema; they will never do it, no matter how entitled they are. I very much hope that when the Minister sums up the debate, she will estimate how many of the 209 extra Labour MPs in this House, including 37 in Scotland, would be here if cutting the winter fuel payment had been on the face of their manifesto. It would be very many fewer.
Labour justified the decision to cut the winter fuel allowance by talking about its alleged poor economic inheritance. Let us take a moment to clear up some facts. In 2010, the budget deficit was about 11% of GDP at £157 billion. Today, it is about 4% of GDP. In 2010, unemployment was about 8%, and today it has halved and is about 4%. In May 2010, inflation was 3.4%. Today it is 2%. This is not the worst economic inheritance since the war.
“we will cut the winter fuel allowance for the richest pensioners and means-test that benefit to save money”.—[Official Report, 25 March 2014; Vol. 578, c. 174.]
Are we supposed to believe that she changed her mind after that and then changed it back again shortly after the general election? I do not think so.
There may be a case for means-testing, but the Chancellor is cutting the payment not just for the richest pensioners, but for pensioners on very modest incomes. She is also not making the case for it. She is asking the Secretary of State for Work and Pensions to do her dirty work for her. If winter fuel payments are to be means-tested, surely the proceeds should go towards low-income pensioners and the cost of social care, but they are not. They are going on above-inflation pay rises for the likes of Labour donors ASLEF.
We have heard about choices a lot today. It is true that this Government have made a calculated deliberate, heartless, cruel choice to enrich their union paymasters, to enrich public sector workers with no requirements on productivity, to enrich well-paid train drivers and to impoverish pensioners. Let me tell this House that voters will not forget and they will not forgive.
This is the Labour party’s choice. As much as it would like to explain that choice away, it has chosen to cut the winter fuel payment, and it must face what that means. Labour’s choice means that our pensioners now have to make their own choices, so Labour’s choice has become a pensioner’s choice.
Perhaps most shocking of all is Labour’s breathtaking hypocrisy on this issue. In 2017, Labour Members on these Opposition Benches had their own research showing that cutting winter fuel payments could lead to almost 4,000 excess deaths. They then vehemently opposed any changes to what they called that “vital” support. What has changed? Have pensioners suddenly become more resilient to the cold, or has the Labour party simply abandoned its principles to fund its own political choices?
Many pensioners in my constituency still rely on solid fuels such as oil, so once a year, going into winter, they fill up their tanks. Payment for that will be coming shortly—before November, and way before next year and any pension rises. How will those pensioners afford to fill their tanks and heat their homes in the months to come?
We have debated a clear and stark choice made by the new Labour Government, the Prime Minister and his “This black hole is what made me do it” Chancellor. It is a patently poor political choice that is wrong-headed and frankly a disgrace. It is a blatant choice for union paymasters while axing key support for 10 million pensioners. It is a reward for Labour’s funders. None of that was in the manifesto or on election leaflets—it is pure subterfuge and hoodwinking.
No charity or group fully backs this measure, given the timescales and its cack-handed and draconian delivery. The Government can bluster and say with the faux anger we heard earlier that they have been acting with the hand they were given. They can say that they simply had no choice and that this was a necessity due to the fantasy inheritance they were allegedly left. Let us look at the facts. UK unemployment sits at 4.1%, sterling is up against the dollar and growth is outpacing inflation. Despite some loyal speeches from new Government Members and passionate speeches from all around the Chamber, Labour Members know—many of them were blank, mute, absent or perhaps even stunned—that Ministers are targeting our pensioners with so little notice.
As the nights draw in, higher winter fuel bills loom. To dress up this measure under the cloak of financial necessity is staggering. It is a costly mistake from the Treasury under the Labour Chancellor that the DWP will have to shoulder, moving staff swiftly to cover the incoming impact of those applying for pension credit. What about those who had planned to pay for their pre-Christmas tank of off-grid oil with their £300 of expected support? The demand surge for pension credit must be met in both cost and delivery, and DWP Ministers will be scratching their heads about where the resource will come from for the reported surge in pension credit applications.
This benefit reform will not be easy. We bear the scars on the Opposition Benches from universal credit, but the change was truly worth it. As the hon. Gentleman said, what does the impact assessment actually say? Who gains, and does it stack up financially? I think we all know that it does not, else the Government would have not ignored the Social Security Advisory Committee process and its scrutiny. They would have done a proper impact assessment and a regulatory assessment, and they would not have tried to avoid a vote on the Floor of the House.
Government Members will troop through the Lobby again, as fodder for an out-of-touch Prime Minister, or they may abstain to avoid the eyes of the Chancellor, deep in the hope that spraying billions of pounds on gimmicks like a shell company called GB Energy will be worth it. They must be aware that they will have to face people in their communities who will want to understand why a few millionaires were worth the attack on millions. Let us take June. She told the BBC that she will struggle to stay warm this winter. She is already planning her jumpers, cardigans and candles. My constituent Valerie from East Grinstead wrote to me—one of almost 20,000 affected—and said:
“I am 80 years old and live on a State Pension of less than £11k, not the…£13k that I keep reading about… I don’t know who gets that much but I certainly don’t!”
She goes on to say that it will be
“a long, cold winter… please do what you can to get this dreadful decision reversed.”
Labour Members could join us in the Lobby to back pensioners like Valerie.
The Opposition welcome the household support fund extension and the commitment to the Conservatives’ triple lock, but we knew going into winter, with energy bills going up, that the right thing to do was to help with cost of living payments. In my experience as an MP and a Minister, I know that the worries and responsibilities of this job come to all Members in the dead of night. It will be in the darkness and the cold in the small hours that women and men who have served this country and supported families and communities will be lying awake worried, fretting and feeling afraid. For those who are frail and living with a disability or a health condition, warmth matters to their health, Loneliness, isolation and worry will eat away at them, because they cannot take a job or do some extra hours to help make ends meet. Medics have warned that this will have serious health threats, as has Age UK.
Pensioners on low incomes matter. They truly are the people who know how to budget. They are the people who eke out and work out their finances. Nobody will work out how this new Labour Government of service has targeted those people so shamefully this autumn. Those families will not forget. They are not statistics. They are Valerie and June, and thousands of others in every community and constituency. They are proud pensioners, who too often go without but do not tell others that they are. Again this winter, they will go without for others. This is horrific. It is a blight on this new Government. It is not right for this to happen to pensioners on their watch. It is their choice. I ask that hon. Members and Ministers do the right thing and stop this callous cut now.
Many hon. Members, both on—
Many hon. Members, both on the Government side and on the Opposition Benches, including my hon. Friend the Member for Earley and Woodley (Yuan Yang) and the hon. Member for Castle Point (Rebecca Harris), spoke about the work they are doing to encourage pensioners in their own constituencies to apply for pension credit to get the support they need.
I want to start by saying some more about the principles that underlie the Government’s approach to means-testing winter fuel payments. First, most help should be targeted to those who most need it. Secondly, significant support for all pensioners will come around via the triple lock. Thirdly, alongside that, extra help will be available to those on low incomes.
Before I do that, I want to say something about means-testing. I have found, both in this debate and in the earlier debate in Westminster Hall where no Conservative Members were present, that there is a lot of support for means-testing the winter fuel payment. We heard from the right hon. Member for Herne Bay and Sandwich (Sir Roger Gale), who said in this debate that he supports means-testing this benefit. We heard that the right hon. Member for North West Essex (Mrs Badenoch), who is the Conservative leadership contest favourite, also supports means-testing this benefit.
We are taking immediate action to increase that take-up, given that up to an estimated 880,000 eligible pensioners are missing out on this support, worth £3,900 on average. I hope there can be some consensus across the House that we need to work together to boost that uptake. That is why last week we launched an initial pension credit week of action to boost awareness. We will continue to raise awareness until the deadline, 21 December, for making a successful backdated pension credit claim.
On pension credit, my right hon. Friend the Member for Leicester West (Liz Kendall) the Secretary of State for Work and Pensions and the Deputy Prime Minister, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) have written to all local authorities asking them to redouble their efforts to reach those pensioners who could benefit from pension credit. [Interruption.] The Opposition Front Bench might grumble, but it is a far sight more than they ever did when they were in power. We are joining forces with charities such as Age UK and Citizens Advice to encourage pensioners to check their eligibility and apply. We will be delivering a major campaign in print and broadcast media, including to urge people to reach out to retired family, friends and neighbours to get them to check if they are eligible.
For the very first time, we are writing to all pensioners in receipt of housing benefit who are potentially eligible to encourage them to claim pension credit—again, something that the last Conservative Government never did.
Over the last five weeks, we have already seen claims for pension credit more than double, and, backed by more than 450 additional staff, we will ensure that claims are processed as quickly as possible.
As my right hon. Friend the Secretary of State for Work and Pensions said in the earlier debate, we will bring forward the merger of housing benefit and pension credit as soon as that is operationally possible, something that the last Government promised but failed to deliver. We are also taking action to ensure that all pensioners get the income that they deserve. Despite being urged by the Institute for Fiscal Studies and others to drop the triple lock during the election campaign, the Government are steadfast in their commitment to it. The triple lock has seen the state pension increase by £2,700 over the last five years, and it was increased by £900 this year and by £970 in the previous year. According to figures released today, which still need to be confirmed, in October we will see the provision of an extra £460 a year from next April.
Moreover, the warm home discount of £150 will help low-income pension households this year. That is critically important, because it is not just for the lowest-income pensioners on pension credit. It is for pensioners on low incomes who have high energy costs, and it will be open to application in October.
The Government encourage Members to boost awareness and encourage people to apply for the warm home discount.
In conclusion, means-testing the winter fuel payment is a difficult decision. [Interruption.] I receive no funding from ASLEF, so the right hon. Gentleman can withdraw his comment. We are targeting support at the poorest pensioners, boosting the uptake of pension credit, maintaining the triple lock for pensioners, extending the household support fund and the warm homes discount and, in the longer term, introducing a warm homes plan to insulate people’s homes. These are the right decisions to take. This Government are determined the fix the foundations of our economy so that we can deliver the change on which we were elected, and which this country and our pensioners so desperately need. Bringing down NHS waiting times—
Question put forthwith, That the Question be now put.
Question agreed to.
Main question put accordingly.
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