Social Fund Winter Fuel Payment Regulations 2024

Baroness O'Loan Excerpts

Wednesday 11th September 2024 Lords Chamber

[Lord Balfe (Con)]

My Lords, I do not believe that this was in the 1997 manifesto of the Labour Party. It was introduced by Gordon Brown, I believe, because he had a vision that everybody should have a financial relationship with the state. I had a short time as the liaison person with Gordon Brown. I was appointed by the European Parliamentary Labour Party and our great leader then, Alan Donnelly, said, “I’m sending you to Gordon—he’s about the most difficult one, but you’ve got a thick skin”. I recall meetings where this was discussed; it was never discussed in the area of poverty, but always in the area of benefits and helping everybody. So this was introduced by Labour and is now being scrapped by Labour, which seems embarrassed by the size of its majority and is trying to make itself unpopular—and I would like to say that it is succeeding.

There have been economic problems all my life: in 1964, 1970, 1974, 1979, 1997 and 2010. Incoming Governments claim they have found big black holes—it has always been the same; but you cannot have it both ways. You cannot say, as Liz Kendall said in the House of Commons yesterday, that the Tories were spending like “no tomorrow” and at the same time say that there is a huge deficit in public services, that teachers need more, that schools and hospitals need rebuilding and that the National Health Service is in crisis. It just does not add up. You cannot have an economic crisis and a big black hole, and at the same time huge demands for more money.

Obviously, I read the three Motions and listened to the very good statement of the noble Baroness, Lady Altmann, but I am afraid that, on balance, because of the conventions of the House, I will be supporting the position my party is taking on that Motion. I have listened attentively to the noble Baroness, Lady Stedman-Scott, who made a very good contribution, but there is one point with which I disagree: point two, the decision to prioritise above-inflation pay rises for unionised public sector professionals.

The pay award bodies came in with awards, which the Government accepted. Is it now the position of His Majesty’s Opposition that the pay awards given by the boards that we set up would have been rejected by us? It does not add up. Quite frankly, public sector workers and trade unionists have had just about as much as they can take. All the time, everything is blamed on them, but these are the people who man the hospitals, schools and all the parts of the state we rely on, and they deserve decent pay and conditions. Although I am on the Benches that do not normally say that, I have been saying it for years and I will say it now.

I also remind the House that the British Medical Association may be a union, but it is not affiliated to the TUC and nor is the Royal College of Nursing. There is a widespread demand in society for fairness, and these pay awards were part of it. The Government did not prioritise the pay awards over the pensioners; those were two quite separate decisions. The pay awards were in line with the procedures set up and continued by our Government. The decision on pensioners was a grubby little decision, taken God knows why, which does not save much.

It is quite right that we should have made it a taxable benefit from the beginning. I was only ever asked once by a Chancellor of the Exchequer—he is now my noble friend Lord Hammond—what I would put in the Budget if I were Chancellor. I said that I would tax the winter fuel allowance and abolish the £10 Christmas bonus and the 25 pence for 80 year-olds, which I have had paid to me recently and does not even buy a packet of sweets these days. I would have consolidated this money into a better pension for all the other people. There was no basic reason why people like most Members of this House should get an untaxed winter fuel allowance. That would have been my solution, and I wish the Government had chosen it.

Having made this speech, I will support the Motion that our party has put down. If it comes to it, I will also support the Motion of the noble Lord, Lord Palmer. I regret that I cannot support the Motion of the noble Baroness, Lady Altmann, for the reasons I have outlined. That is not because I do not support what she says, but as an Opposition, we need to have respect for the traditions of the House and the way we conduct our business.

[Baroness O'Loan (CB)]

My Lords, I grew up in Barnsley in Yorkshire, which is a Labour stronghold, and I find it inconceivable, even as I look at this instrument, that the Labour Government are taking away the winter fuel payment from 880,000-plus very poor people, who will go very cold and hungry this winter as a consequence.

I thank the noble Baroness, Lady Stedman-Scott, for her clear explanation of the access available to the shadow Chancellor prior to the election. What she told us was important; I did not know it.

There are disabled pensioners who may not be in receipt of pension credit but who, as a consequence of this, will have grave difficulty keeping their houses as warm as they need to keep them. They cannot go and sit in the malls, shops and cafes, as so many other pensioners do, to keep warm. We should bear them in mind, and we should not be doing this.

Noble Lords have already indicated ways in which a similar saving could be achieved, through taxation processes or windfall taxes, et cetera. Noble Lords should reflect on whether they could keep themselves warm on £218 a week, and eat. The Labour Government should think again about what they are doing.

Finally, the conventions of this House are simply that: conventions. There are particular and extreme circumstances in which we should disregard our conventions for the benefit of those who have no voice. Pensioners will lose a benefit they so desperately need, and this is the one thing people have repeatedly stopped me on the street about since the Labour Government made this announcement. This is an occasion on which we should ignore convention and vote with these Motions.