Social Security
Debate between Wendy Chamberlain and Pete Wishart(2 months, 2 weeks ago)
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Wendy Chamberlain
Obviously, difficult decisions were made during the coalition. The Government are saying today that one of the things they are doing is continuing the triple lock. One reason why the Liberal Democrats supported and brought that move in during the coalition Government, and one reason why we continue to support it, is that still not enough has been done to best support our vulnerable pensioners.
Pete Wishart (Perth and Kinross-shire) (SNP)
I am sure the hon. Lady will acknowledge that Scotland has the coldest climate in the whole United Kingdom. We will be disproportionately hit. It is absurd that that will happen in energy-rich Scotland. Will she appeal to all Scottish Members to ensure their support tonight? Constituents right across Scotland will be watching carefully how Scottish Members of Parliament vote tonight, so will she encourage them to vote with us this evening?
Wendy Chamberlain
We all know that geographical disparities exist. There are differences in how cold parts of the country are. Different communities face differing energy costs and rates and have different means of fuel. We will be supporting the official Opposition’s motion tonight and I hope other MPs across the House do so.
Age UK has drawn attention to low take-up rates for pension credit. Around 1 million pensioners would be eligible for pension credit but do not claim it, often due to a lack of awareness. Since the Chancellor’s announcement, we have seen lots from the Government about how they are going to increase the uptake. Reports do suggest an increase in applications, but also that the wait times for that are increasing. If people are applying for pension credit and get it confirmed only after the date on which the winter fuel payment is made, will those people be caught up with?
An awareness drive is all well and good. The DWP has stated that its calculations assume an increase in the uptake of pension credit. That will still leave more than 700,000 eligible pensioners not getting pension credit, and therefore not getting winter fuel payments. Those of us in the last Parliament will remember numerous drop-ins and “dear colleagues” to outline the steps that the then Government were taking to encourage the uptake of pension credit, and what MPs could do. I remember writing regularly in my local newspaper column to outline how people could apply, but in reality the number of people taking up pension credit is stubbornly stuck at a ceiling of 70%. I would be interested to know what the Government are going to do that will be radically different in order to increase that figure.
The Government’s rationale is that an estimated £1.4 billion will be saved by means-testing the winter fuel payment, but have they made an assessment of what that saving would be if they fulfil that other stated aim of ensuring that all those eligible for pension credit claim it? Is there not a fundamental contradiction at the heart of this measure? How can the Government aim to boost pension credit on the one hand, while aiming to maximise the fiscal savings they are making through this cut? What will it cost to increase the take-up rate, and can the Secretary of State give an assurance that the Treasury will give its full support to any measures aimed at boosting the uptake of pension credit?
A separate but related issue is that of the cliff edge. Analysis by Policy in Practice shows that around 130,000 elderly people miss out on pension credit, as they are just £500 over the income threshold to claim the benefit. We know that those vulnerable elderly people will now be cut off from winter fuel payments with just a few months’ notice. That leaves me feeling that there is cruelty at the heart of this cut. Those vulnerable pensioners, who have spent years struggling under a Conservative cost of living crisis, are now faced with a double hit: an increase in the energy price cap from 1 October, alongside being stripped of those winter fuel payments.
It is important that we do not forget that energy costs are much increased from a few years ago, so arguably a winter fuel payment is needed more than ever. This House has an opportunity today to do the right thing and protect those vulnerable members of our society. The Liberal Democrats will support the official Opposition motion and oppose the move to strip pensioners of that support. I hope other Members will do the same.