Unite, one of the Labour party’s major financiers, is continuing with its legal challenge over the UK government’s intention to reduce winter fuel payments to millions of retirees. The union claims that ministers did not follow correct procedures in restricting the payments to poorer pensioners. The payment, offered as a lump sum of up to £300 ($399) to pensioners over 80 and £200 to those under 80, is to be limited to those who receive pension credit and other forms of means-tested help. It is estimated that 10 million people will no longer be entitled to the payment. Around 200,000 Unite members will be affected.
Unite argues that ministers should have undertaken a full impact assessment before making the change. Lawyers for the union have issued an urgent High Court judicial review of the policy. The government carried out a limited “equality analysis” of its reforms, which indicated that around 50,000 pensioners could be pushed into poverty as a result of the change. Ministers argue that a full impact assessment was not required as a significant proportion of the 880,000 eligible pensioners who do not claim the minimum standard of pension credit will be prompted to do so.
Official figures indicate that more people applied for pension credit following July’s decision to link it with winter fuel payments, with 150,000 applicants in a 16-week period compared to 61,300 beforehand. The UK government has thus far declined to comment on the legal action, but insists that pensions will rise in line with the “triple-lock” up-rating policy and that some pensioners will receive a warm home discount of £150.
Winter fuel payments are of significant interest to the Labour Party, which has thanked Unite for bringing the issue before a court. The cuts to the payments are a controversial policy as winter approaches, with pressure increasing on the government to reverse its decision
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