Pensioners and Winter Fuel Payments

Debate between Lord Dodds of Duncairn and Robert Smith

Tuesday 22nd November 2011 Commons Chamber

[Mr Dodds]

I understand that argument entirely. Indeed, the Select Committee on Energy and Climate Change pointed to it in its report back in 2010, and I will come on to deal with the targeting of resources and tackling fuel poverty. As for cold weather payments, there is clear evidence that many pensioners do not claim all the benefits to which they are entitled. The benefit of having a universal system is that it reaches all those who need it. I will deal with the issue that the right hon. Gentleman has highlighted in more detail later.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

In some of the trials aimed at trying to reduce fuel poverty in other parts of the United Kingdom, there has been a conscious drive to improve benefit take-up, and that has made a huge difference to people’s income, far more than the winter fuel payment would make.

[Mr Dodds]

It is a combination of all these factors. The winter fuel payment does play an important role, as the Government and the Minister have acknowledged. The Government made it very clear in the coalition agreement that they would maintain the payment. The hon. Gentleman is right to say that benefit take-up is extremely important, and we should all be doing more to encourage it. Back in Northern Ireland, the Executive have also taken steps to try to encourage benefit take-up. The winter fuel payment plays an important role in tackling this issue.

--- Later in debate ---

[Mr Dodds]

Yes, the hon. Gentleman raises an important point about those who depend on home heating oil. These are one-off payments of about £600 for 900 litres of oil—it is a lump-sum payment—so it would be extremely helpful to people to have that money in their hands when they were able to buy more oil at a lower price. He makes an extremely good point.

The picture is stark: we have much higher energy costs; there are considerable pressures on pensioner household incomes owing to lower savings returns; and increases in VAT are hitting everybody hard, but hitting pensioners particularly hard. Furthermore, pensioners tend to be on fixed-retirement incomes, and we know that, according to a recent report, the cost of living has risen by one fifth for older people over the past four years, compared with 14% for the population as a whole.

At the last election, the parties made a number of pledges. On pensioners, the Conservative party described the number of excess winter deaths as a national disgrace, and it said:

“we want to set the record straight. Labour are sending cynical and deceptive leaflets to pensioners’ homes saying we would cut their benefits. This is an outright lie, and here it is in black and white: we will protect pensioners’ benefits and concessions, and this includes: the Pension Credit; the Winter Fuel Allowance; free bus passes; and, free TV licences.”

I defy anybody out there in the public to interpret that statement as anything other than a pledge not only to maintain the existence of the winter fuel allowance, so that it continued to be paid as a benefit, but to maintain it at the same rate at which people were receiving it when the election was called. What other interpretation can we put on those words?

The Liberal Democrats said in their manifesto before the last election that they would reform winter fuel payments, extending them to all severely disabled people, and that this would be paid for by delaying age-related winter fuel payments until people reached 65. However, the Minister, who is in his place, said earlier this month:

“There are no plans to extend provision under the winter fuel payment scheme.”—[Official Report, 3 November 2011; Vol. 534, c. 719W.]

The coalition programme for government stated:

“We will protect key benefits for older people such as the winter fuel allowance,”

and so on. Then there is the argument about the Labour party’s position and what Labour was proposing—or not proposing—to do had it remained in office.

I point to those pledges for this reason. People say today that politicians, Parliament and this House are disconnected from ordinary people. People are losing faith in politics; and is it any wonder, when they read those clear statements and are led to believe one thing, but then, as soon as the election takes place and the same politicians come to office, they turn round and do something entirely different? Their argument in doing so is: “Well, we’re only doing what the previous Government said they would do.” When people can so cynically disregard the pledges that they make on such an important issue, that is another reason for the disconnect between politicians and the public out there.

[Sir Robert Smith]

I understand the right hon. Gentleman’s argument, but does he think that one reason for the disconnect is perhaps also the previous Government’s mistaken decision to raise the rate to a level that they did not think they could afford to maintain in the long term? That was where the disconnect started.

[Mr Dodds]

I have not heard it said that the level of the payments made over the last three years was unsustainable. I have never heard anybody make that argument.

Let us be fair: the Government have made choices. They have decided, because of the economic situation and the deficit, to cut expenditure in certain areas. In other areas, they have decided to maintain or increase spending. That is the choice of the Government and the majority of the Members of this House; but do not let anyone pretend that the Government had no choice about winter fuel payments or that they had to do what they did. They did not have to do it: they chose to pick this area for cuts and not others. That is a reprehensible choice—a choice that is not justified either economically or morally. At a time of so many excess winter deaths among our older population, it is appalling that cuts should be aimed at that sector of our population.