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Opinion

Arguments in favour of winter fuel payment cuts are built on sand – here's the truth

MPs cut winter fuel payments, risking poverty for 2.5m pensioners

23/07/2024. London, United Kingdom. The Chancellor attends a CEO Business Reception. 10 Downing Street. Picture by Kirsty O'Connor / No 10 Downing Street.

The vote in the House of Commons to cut winter fuel payments for most pensioners was a grim scene.

‌While some MPs shouted “shame” as the results were read out, others on the government benches could be heard cheering.

Age UK has now estimated that 2.5m pensioners will face poverty as a result of the removal of winter fuel payments. And as the changes have been introduced at short notice, the End Fuel Poverty Coalition estimates that millions more will struggle financially as they have not had time to plan for the winter ahead.

‌We know that in the long term, a comprehensive plan to upgrade insulation and ventilation in people’s homes will help bring down bills. Ministers are right about that.

‌But in the short term, as older people cut back on energy, unable to afford their bills, they increase the risk of living in cold, damp or even mouldy homes. This increases their risk of ill health or even death.

‌Ministers should not gamble with older people’s lives to fill a budgetary black hole and it is certainly nothing for MPs to cheer about.

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‌If you look further into the statements Labour MPs have been issuing to try and justify their vote, it appears their arguments don’t stand up to any form of scrutiny.

‌There are five common errors in their posts.

‌MPs say energy bills are decreasing year-on-year.‌ But for older people, this is not true. In fact, in real terms, the changes this winter mean that some older people will face the highest energy bills they have seen.

‌Pensions secretary Liz Kendall told the Commons that the household support fund (HSF) has been extended in response to help pensioners. Her party colleagues repeat this claim. The truth is that the HSF had already been slated to be extended. And ministers’ extension of the fund is at the same levels as in previous years.

‌So, in reality this means ministers are telling local authorities to take money from families that had supported through the scheme in previous years and give it to those who they have taken winter fuel payments away from.

‌It’s also worth noting that the £500m which the HSF has been given is the same level of funding as in previous years. It was introduced in winter 2021/22, so if you take into account inflation, keeping this at £500m for this winter is a real terms cut (if it had risen in line with inflation it should be £600m this winter).

‌MPs say opponents of the axe to winter fuel payments don’t support means testing.

‌This is untrue and most have been clear (such as in a letter signed by dozens of charities) that it is not the principle of narrowing eligibility that is opposed, but how it has been applied and the short notice of the decision. That is why campaigners are still united in calling for a delay to the winter fuel payment cuts.

‌Labour backbenchers claim that those pensioners most in need will still get help. Yet according to a report by a former pensions minister, about five out of every six pensioners living below the “poverty line” could be at risk of being stripped of their winter fuel payments.

‌Finally, MPs say that the triple lock will mean pensioners get more support. As personal finance experts point out, there are three issues with this statement.

Firstly, the rise starts next April, when pensioners face an energy bills crisis now.

‌Secondly, the full state pension rise is for those who get the full state pension. There are up to 800,000 of the poorest pensioners who get less than the full state pension and don’t even get pension credit.

‌And finally, the rise only applies to the one in four pensioners who get the ‘new’ state pension.

‌With so many misconceptions now flying around it’s clear that the government’s case for axing winter fuel payments was built on sand. And it’s doubtful even ministers knew the implications of the decision, given the failure to produce an impact assessment.

‌So the big question is, did Labour MPs even know what they voted – and in some cases cheered – for?

‌Simon Francis is coordinator of the End Fuel Poverty Coalition.

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