Plenty of wealthy pensioners who do not need winter fuel payment, says minister

Emma Reynolds said there is “fairly widespread agreement” among MPs that the benefit should not be universal, adding it is right for the Government to target support to the poorest pensioners.

Ms Reynolds highlighted mitigation measures introduced by the Government, including extending the Household Support Fund, and said it was a “national scandal” that the previous Conservative government had not done more to increase uptake of pension credit.

Her remarks came after Labour MPs questioned the economic case for Government cuts to the winter fuel payment, warning the policy will also have a “humanitarian cost”.

The Westminster Hall debate also heard pensioners are considering riding on a bus in a bid to keep warm this winter while others fear they will “not survive the winter”.

People in England and Wales not in receipt of pension credit or other means-tested benefits will lose out under the Government’s policy.

It is expected to reduce the number of pensioners in receipt of the up to £300 payment by 10 million, from 11.4 million to 1.5 million, saving around £1.4 billion this year.

Ms Reynolds, replying to a Westminster Hall debate, said the Government is taking the decision to means-test the payment due to a “£22 billion black hole” in this year’s public finances “left by the previous government”.

She said: “In protecting the poorest pensioners on the lowest incomes and with the greatest need, it is the right decision given the tough choices that we face.

“Just to be very, very clear, I have spoken to a number of (MPs) present about the Government’s decision and there actually is fairly widespread agreement that this benefit should not be universal.

“There are plenty of very wealthy pensioners who are getting transfers of £200, or £300 if they’re over 80, into their bank account and who don’t need it, so it’s right that we target this support on the poorest pensioners.”

Opening the debate, Labour MP Rachael Maskell (York Central) said a Labour Government “must always protect the poorest in our society”, before questioning the likely savings of the policy to limit winter fuel payment eligibility.

Labour MP Andy McDonald (Middlesbrough and Thornaby East), intervening on Ms Maskell, said: “The winter fuel payment regulations amendment will take up to £300 per household from two groups of low-income pensioners – those eligible for pension credit who do not claim it and those who are just over the pension cliff-edge but still living on very little.

“As I understand it, the pension credit take-up is around 63% and this will at best be 68% and the saving to the public purse is predicated on that basis, but the savings will be wiped out if everyone eligible took up the pension credit, which surely should be the goal.

“Does she agree with me that this simply doesn’t stack up?”

Ms Maskell replied: “I think (Mr McDonald) has done the maths and I think it speaks for itself. The Chancellor cannot therefore make this just an economic argument as there is also a humanitarian cost too, and we need to have the capacity to find that escape route, as (former Treasury minister) Ed Balls stated, as people need a safety net.”

Ms Maskell welcomed Government moves to encourage more people to sign up to pension credit to ensure they receive the winter fuel payment, but said there is a “nine-week wait” once the 243-question application has been submitted.

The MP, who also called for the policy to be delayed, added: “Demand on GPs sadly will rise, queues at A&Es will grow, more beds occupied in the NHS, and social care under more demand. Tragically, according to UCL and the Institute of Health Equity, there were 4,950 excess winter deaths due to cold homes under the previous government.

“I feel sick to the stomach each time I repeat this reality as I can’t process how governments past did not protect these vulnerable people. Labour must be different. We need mitigation, as we must protect those under our care, or what is the point of power?”

Ms Maskell raised the case of a recently widowed constituent who is “now scared they will not survive the winter, they can’t afford their heating”.

Liberal Democrat MP Victoria Collins said several Harpenden and Berkhamsted constituents have written to her to express concerns, with an elderly couple saying they will “slip through the net and are considering going around on a bus to keep warm in winter”.