The UK Government has had to take the difficult decision to continue winter fuel payments only for the poorest, most vulnerable pensioners because the previous Tory government left a £22bn black hole in the country’s finances.
This was not a decision that anyone wanted to or expected to make but it is needed to get our country’s finances back on a firmer footing. By taking tough decisions now and providing economic stability, we can begin attracting the investment and growth our country needs to properly fund and support our public services.
To protect the most vulnerable, Winter Fuel Payments will continue for households receiving Pension Credit. This ensures that the least well-off pensioners receive targeted support.
Additionally, this Labour government are still firmly committed to maintaining the pensions triple lock, which will benefit all pensioners, and supporting pensioners through home insulation programmes. The triple lock gave pensioners an extra £900 this year and forecasts suggest it will give them some £460 next year and some £1700 over the course of this parliament.
I do however understand and share concerns about the potential impact this change could have on some older individuals in our community, particularly those who are just above the pension credit limit.
The current situation has been that the Winter Fuel Allowance has been going to all pensioner households, from those relying on pension credit to those whose income is well above the average wage. That is very difficult to justify, particularly as the cost of living crisis over the past couple of years has hit households of all ages.
So simply voting against scrapping the winter fuel allowance would have left the allowance going to the very wealthy.
Instead, I recognise the challenges faced by those individuals whose income is just above the Pension Credit threshold and we are exploring ways to provide additional support. This includes grant-aid help to those in particular need, like the previous discretionary funds that have been administered by local authorities. The government is committed to ensuring economic stability and will continue to review policies to protect those in financial hardship.
Furthermore, we are making concerted efforts to ensure that those individuals who are eligible for Pension Credit do actually receive it, including taking on additional staff at the DWP to deal with the increase we hope to see in the number of applications. In addition, it will be backdated for three months to make up for delays in processing it.
Locally I have already made arrangements with the Citizen’s Advice Bureau to provide additional sessions for individuals to check their eligibility for Pension Credit, and I am sending out several thousand letters to those who may wish to take up this opportunity to check their eligibility.
Here in Carmarthenshire alone, pensioners on low incomes are missing out on £5m of Pension Credit they qualify for but haven’t claimed. I would encourage you and your loved ones to check if you or they are eligible by visiting the following link: www.gov.uk/pension-credit/eligibility or by calling the Pension Credit claim line at 0800 99 1234.
The government is also committed to increasing the uptake of Pension Credit through a comprehensive strategy that involves:
- Collaborating with Charities and Local Councils to increase awareness and support for Pension Credit applications.
- Accelerating the Department for Work and Pensions campaign to increase Pension Credit uptake, ensuring that eligible pensioners are aware of their entitlements.
- Merging Housing Benefit with Pension Credit to simplify the process and ensure that those eligible for both benefits receive them without additional administrative hurdles.
The decision to remove Winter Fuel Payments from those not receiving Pension Credit was indeed difficult and not taken lightly. However, it was made as part of a broader strategy to address the severe economic challenges we inherited. The Treasury’s recent audit revealed a significant overspend and unfunded commitments from the previous government, necessitating immediate and decisive action to restore economic stability and control public spending.
I will continue to represent our community’s voices and fight for the rights and wellbeing of older people in Llanelli.