Pensioners and Winter Fuel Payments

Baroness Blackwood of North Oxford Excerpts

Tuesday 22nd November 2011 Commons Chamber

[Mr Dodds]

Interventions have an uncanny knack of happening at the precise moment when one is coming on to deal with the very issue that they raise. I will deal with the issue that the hon. Lady has raised. Of course there are other measures aimed at dealing with fuel poverty and coldness-related illness among elderly people. There are the cold weather payments, to which I referred, which some may argue are more specifically targeted. I will come on to that in a moment.

There is also the warm home discount. Recently, the Northern Ireland Assembly unanimously passed an appeal to the Government to think again on this issue, and when the Minister replied he referred to, among other things, the warm home discount scheme. However, the scheme applies only in Great Britain, because the legislation did not apply to Northern Ireland. Half a million pensioners benefit from that scheme in Great Britain, but pensioners in Northern Ireland do not. I am sure that the Minister will address that point.

There are also other measures. On the practical health side, there is the flu vaccination scheme. Northern Ireland has its own warm homes scheme, which I am glad to say was introduced under devolution by a Democratic Unionist party Minister. It has helped 80,000 households and has received widespread support in Northern Ireland. Northern Ireland also has a boiler replacement scheme and the social protection fund, which the Executive have brought forward. I understand that discussions are under way to address the specific issue of fuel poverty and the elderly in Northern Ireland. So yes, there are a range of measures, and we need to keep investing in such things as energy efficiency and home insulation to prevent fuel poverty in the long term.

[Nicola Blackwood (Oxford West and Abingdon) (Con)]

Will the right hon. Gentleman give way?

[Mr Dodds]

In a moment.

However, I say to the hon. Member for Truro and Falmouth (Sarah Newton) and the House that those other measures do not mean that we can cut the winter fuel payment to such a massive extent. It goes directly to our senior citizens and is an important tool. It is not the only tool—it goes only to senior citizens but, as I have said, they are disproportionately affected—but it is an invaluable tool in helping to tackle fuel poverty among the elderly.

--- Later in debate ---

[Steve Webb]

I do not doubt for a second the point that the hon. Lady, for whom I have a great deal of respect, makes. Obviously, as a GB Minister, I am responsible for these matters in Great Britain. Fuel poverty is a devolved matter, although my hon. Friend the Under-Secretary, who will respond to the debate, was in Northern Ireland last week. Yesterday I spoke to the Northern Ireland Minister for Social Development to discuss with him these issues as they affect Northern Ireland. He was keen to stress some of the measures that the Executive are taking—for example, the double glazing of social housing.

That comes back to the point I was making, which was that this is partly about 98p a week on the winter fuel payment, which is what we are discussing, but far more about stopping people having highly energy-inefficient homes and giving them a decent, dignified standard of living. If hon. Members think about the difference that we are going to make through the triple lock on the basic pension, it swamps the 98p that we are talking about today and will make a real impact on the living standard of pensioners over decades to come.

[Nicola Blackwood]

On energy efficiency and insulation, proposals have come from the Government, including the green deal. My concern relates to my hon. Friend’s comments about pension credit and uptake by the most vulnerable groups. Have any discussions taken place with the Department of Energy and Climate Change about how to improve uptake by those groups, who would benefit most from the proposals?

[Steve Webb]

My hon. Friend raises the important issue of take-up. Clearly, benefits such as cold weather payments and the warm home discount, which is the £120 off fuel bills in Great Britain, as I mentioned in the letter that I sent, are contingent on receiving an income-related benefit. That is a challenge that we always face. We want to target those who are most vulnerable, but if some of those who are vulnerable miss out on the passported benefits, how do we get that money through without spending it on everyone, resulting in it being spread much more thinly? That is a permanent trade-off and why we are looking at ways of improving the take-up of these benefits and having a mixed strategy—a mix of a universal winter fuel payment that goes to everyone regardless of whether they claim, and targeted help for those most in need.

As a Department we are working with organisations such as Age UK to try to make sure that pension credit materials are provided to them. Those organisations have responded positively to make sure that the literature we provide is easy to understand and reaches the people who need it. I entirely take my hon. Friend’s point that there will always be gaps, and we need to address that. My view in the long run is that if we can have state pension reform that guarantees a state pension above the basic means test, that will go a long way to addressing some of these issues, but perhaps that is for another day.

I do not want to go on too long but I will mention, briefly, the warm home discount. This is important because it is the subject of negotiation between the Government and the big six energy companies in Great Britain that will give £120 off the electricity bills of 600,000 of the poorest pensioners. That will make a real contribution. We do it through electricity bills because pretty much everybody has an electricity bill, not because we think the price of electricity has necessarily gone up more, but it does not apply in Northern Ireland.

There is an interesting question about the negotiations or discussions between the Northern Ireland Executive and Power NI, for example, about whether the Northern Ireland providers could be asked to do the same sort of thing. If the big six are doing it in Great Britain, I cannot immediately see why the same should not benefit pensioners in Northern Ireland. Perhaps right hon. and hon. Members could take that back and challenge their own power suppliers to do more.

Clearly, we need to make people aware not just of the means-tested benefits they can get, but of the help with insulation, cavity walls and so on. Further in response to my hon. Friend the Member for Oxford West and Abingdon (Nicola Blackwood), we as a Government are sending letters to about 4 million of the most vulnerable energy customers, letting them know that they have access to heavily discounted insulation for their lofts and cavity walls. Even when we write directly to people, we do not always get the results that we want, but we are aiming to target people directly.