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Leader of the House of Commons, Lucy Powell, has defended the government’s decision to scrap winter fuel payments for around 10 million pensioners who do not receive pension credit. The payments, of up to £300, have been cancelled in an attempt to address a £22bn “black hole” in public finances. The move has met with criticism from MPs and charities, with Conservative and Liberal Democrat MPs pushing for a Commons vote. Powell, however, refused to speculate over whether the decision would be reversed and suggested that a private pensions sector would be an alternative way of protecting pensioners in the long term.
Ms Powell warned that abandoning the plan could have led to a “run on the pound” and an economic crash in addition to the poorest people, including pensioners, paying the heaviest price in this scenario. The government’s resistance to reconsidering its policy takes place amid a significant controversy regarding the move. On Thursday, Liberal Democrat leader Sir Ed Davey called for a Commons vote on ending winter fuel payments, while Labour MPs loyal to Sir Keir Starmer have expressed unease about the policy.
Powell also highlighted a government campaign aimed at encouraging retired people to determine whether they qualify for pension credit, which on average amounts to £3,900 a year. The week of action, titled Pension Credit Week of Action, is running just after the Department for Work and Pensions (DWP) claimed that approximately 880,000 eligible pensioners were not receiving the credit. The DWP is urging pensioners with a weekly income below £218.15 ($282.12) for a single person or £332.95 ($429.47) for a couple to check the online calculator to determine whether they qualify for payments.
Age UK, the charity that sponsored a petition calling for the cancellation of the winter fuel payment policy, stated that it had sent a letter to Chancellor Rachel Reeves requesting that the payments be extended to a further 2 million pensioners, including those in receipt of housing benefit, council tax support, attendance allowance and carers’ allowance. More than 460,000 people have signed this petition. Charity director Caroline Abrahams stated that the objective was to “safeguard” the roughly two million pensioners “who will experience severe hardship” due to the loss of the payment.
On 30 October, Reeves is due to deliver her first budget. When questioned, Powell refused to reveal the taxes that Reeves is anticipated to raise, although inheritance tax, capital gains tax, fuel duty, and changes to tax relief on pension contributions have all been mentioned as possible measures. Last week, the prime minister acknowledged that the budget would be “painful” and stated that the “broadest shoulders should bear the heavier burden”. Powell restated Labour’s commitment not to increase income tax, VAT, or National Insurance contributions, including reversing Conservative National Insurance cuts carried out recently
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