Pensioners: Winter Support
Baroness Janke Excerpts(2 days, 10 hours ago)
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Baroness Sherlock (Lab)
Approximately 1.4 million pensioner households receive pension credit. We received around 74,400 pension credit claims in the eight weeks following the announcement about the winter fuel payment on 29 July—which is probably what has triggered the noble Baroness’s question. In the eight weeks after the announcement, there were 74,400 applications, while in the eight weeks before it, there were 29,500. That represents a 152% increase in pension credit claims received over that period. That period finished in the week starting 16 September, so more have come in since then and more will come in between now and the deadline of 21 December for when people can apply and still have their winter fuel payment backdated for this year.
Baroness Janke (LD)
A large majority of low-income pensioners are not on pension credit and therefore will lose the winter fuel payment, although they are living below the poverty line. What emergency measures have been put in place to support those pensioners? What are the Government doing to refine their targeting policies to make sure that full winter fuel support goes to all poor pensioners who are desperately in need of it?
Baroness Sherlock (Lab)
My Lords, the first thing would I mention once again is the household support fund. That is £421 million provided specifically for local authorities to support those in need, especially with the cost of living, such as food and fuel, so that is somewhere for people to go. We realise there is still a significant number of people who could claim pension credit, and if they get pension credit, they will get the winter fuel payment. It also opens up a gateway to other potential support with rent or council tax and passporting to a range of other benefits. We are running a campaign, and we will shortly be writing to 12 million pensioners. We will soon be writing also to 120,000 pensioners who get housing benefit who we think might be entitled to pension credit as well, so we are doing huge amount to make sure all that those in that space can claim it. The final point is that there are two bits to pension credit. The main bit tops up income to a certain level. There is also the savings guarantee, so people who have more savings and may think that they are not entitled to the slightly higher income could still be entitled to some pension credit. If they get any at all, they get the winter fuel payment, so please spread the word.
Women’s State Pension Age: PHSO Report
Baroness Janke Excerpts(3 days, 10 hours ago)
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Baroness Sherlock (Lab)
My Lords, we understand the human impact felt behind the issues raised in this report. Retirement is a significant milestone that should, one hopes, be greeted with excitement rather than surprise. But I say to my noble friend that I do not think this Government could be accused of kicking the can down the road; the ombudsman published its report in March, we became the Government only in July and it is now October. Although I fully understand that he would like me to articulate a response here, I am sorry that I am not able to do so. However, I assure him that the Minister for Pensions met WASPI representatives recently—the first Minister to do that since 2016.
Baroness Janke (LD)
My Lords, by the time they reach 65, women will typically have £69,000 in their pension pots compared with the £205,000 the average man will have by the same age. What practical measures will the Government take to address the injustice of the pensions gender gap and enable proper security for women in retirement and old age?
Baroness Sherlock (Lab)
I am grateful to the noble Baroness for raising a really important point. The gender pensions gap starts with the gender pay gap. Therefore, the first thing the Government need to do is address the gender pay gap and we are committed to doing that. The national pay gap still stands at over 14%, which is really shocking. We know that most employers understand that, when women succeed, so does their business. We are committed to making sure reports are given. For example, gender pay gap action plans will be mandatory and will reflect the hard work of outsourced workers as well as employees.
The kinds of reforms that have taken place under successive Governments are beginning to change at least the way the state pension addresses the gap between men and women. In the new state pension, there is less of a difference because the old state pension was much more dependent on national insurance contributions and pay-related additional pensions, whereas the new one does not have that. The gap is closing, but in private pensions it is still significant, and we need to do more about that.
Social Fund Winter Fuel Payment Regulations 2024
Baroness Janke Excerpts(1 month, 2 weeks ago)
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Baroness Janke (LD)
My Lords, as other noble Lords have said, there is a sense of bewilderment for so many people at one of the new Labour Government’s first actions being to punish the poorest pensioners for the shortcomings of the previous Conservative Government by restricting winter fuel payments to those receiving pension credit.
Means-tested pension credit is renowned for its low take-up: 39% of those entitled to it do not claim it. At this point, I would like to welcome the Minister. I am sure she will recall that during her time in opposition, we worked on a cross-party basis to try to boost the take-up of pension credit, along with the noble Baroness, Lady Stedman-Scott, and the noble Lord, Lord Foulkes. However, despite a fairly vigorous campaign, its success was marginal and small. As the noble Lord, Lord Davies, has said, successive Governments have wrestled with this problem over the years and failed to crack it.
The reasons that emerged for the low take-up were the resistance of this generation of pensioners to what are perceived as state handouts; and that the level of bureaucracy, as has already been mentioned, but also the burden of proof of need are so demanding that many people are intimidated by the idea of claiming. Many older pensioners do not have access to the ICT equipment and skills which are essential to make a claim. I would be interested to know what action the Government will take, where so many people have failed, to increase take-up. Also, as the noble Baroness, Lady Stedman-Scott, has said, if they are successful, what will be the impact on the savings of £1.4 billion?
Age Concern tells us that more than 2 million pensioners will be harmed by this measure: some 1 million who are eligible for but not receiving pension credit; 1 million who are just below the pension threshold and on low incomes, about whom the noble Baroness, Lady Altmann, spoke so movingly; and 200,000 who have high energy costs due to disability or a health condition, or who have to live in poorly insulated homes. It is also true, as we have heard in this Chamber from many noble Lords, that many pensioners who receive winter fuel payments do not need them; but surely a blanket withdrawal with no time for those affected to plan and assess their financial circumstances is callous and arrogant.
It is also irresponsible to introduce such sweeping measures without a proper impact assessment, given the risk to vulnerable and elderly people. I was interested to hear from the Minister today that we need several months to conduct impact assessments and consultations on ticket touting, yet somehow this was inappropriate for a measure such as this.