Social Security Advisory Committee: Winter Fuel Payment

Baroness Sherlock Excerpts

Thursday 14th November 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Sherlock) (Lab)]

My Lords, I thank the noble Baroness for her question. I am sure she is aware that the Secretary of State has replied to the Social Security Advisory Committee and has placed a copy of that on GOV.UK. She has gone through all the points raised by the SSAC and responded to them in detail, so I commend that to the noble Baroness. If noble Lords would like to ask any questions, I am happy to respond to them specifically. The department has a good working relationship with the SSAC. We welcome its observations and comments, and we always listen to the points it makes. It will be no different on this occasion.

The noble Baroness raised questions of housing benefits and costings. Final costings for the changes were certified and published by the OBR at the Autumn Budget and take account of any behavioural responses and the estimated number of people claiming pension credit in the upcoming years. I stress that if more people who are entitled to it claim pension credit, that is a good thing. It means that those people will get approaching £4,000 a year rather than or in addition to the winter fuel payment.

On the question of housing benefit, the judgment was made not to make housing benefit in itself a qualifying benefit, because it is based not only on financial circumstances but the amount of rent. As the noble Baroness will understand only too well, households that get housing benefit can go higher up the income distribution than those that get pension credit. That can be true even if they get the maximum, because of the way earned income is treated. We also have to take account of fairness between those who are renting and those who are paying mortgages. I presume that is why, when the previous Government did cost of living payments, they did not choose housing benefit as a qualifying benefit. I imagine it was for the same reasons.

[Lord Palmer of Childs Hill (LD)]

My Lords, following the Minister’s reply, the Social Security Advisory Committee recommended that the Government consider bringing forward an urgent amendment to the regulations which would, for this year only, very modestly passport those in receipt of the full rate of pensioner housing benefit on to winter fuel payments. It is a very modest request. Will the Government take that advice?

[Baroness Sherlock (Lab)]

My Lords, I think I have answered the point about housing benefit and explained why the Government took the decision we did. However, we are determined to do everything we can, so we are directly contacting approximately 120,000 pensioner households that may be eligible for pension credit, to encourage them to make a claim. We are also writing to all pensioners to make sure they are aware of the changes coming forward and to link them to where they can claim pension credit if they are entitled to it.

[Lord Deben (Con)]

Will the Minister accept that the decision not to give money to people who do not need it was the right decision, and that to argue against it is not sensible? However, it is also true that the public has really not understood what this now means. The Government have to communicate much better than they are doing at the moment. It is wrong to attack the Government for the decision, but it is perfectly right to attack the Government for not putting that decision over in a way that people can understand.

[Baroness Sherlock (Lab)]

I am grateful to the noble Lord, especially for the first half of that encouragement. The Government had to make some difficult choices. Deciding not to pay the winter fuel payment to people who do not need it was one of those choices. Inevitably, that causes some challenge and concern, particularly for those who are around the margins, as with any system of means testing. That has been challenging, but I take the advice of the noble Lord and we will look again to make sure that we are properly explaining to people what is happening and that those who need this most will still get help. I hope that they will not just get the help of the winter fuel payment, but potentially thousands of pounds in pension credit as well.

[Lord Dodds of Duncairn (DUP)]

Have the Government carried out any assessment of the differential impacts across the regions of England and the countries of the United Kingdom of this decision to axe winter fuel payments for most pensioners? There will be different impacts. Coming from Northern Ireland, we know some of the concerns there are, and the different levels of information that have been given out about people’s eligibility for pension credit and the campaign to encourage uptake.

[Baroness Sherlock (Lab)]

My Lords, the situation is different in different parts of the country. In Scotland, it is complicated by the fact that this is the first year it is devolved, so we have had to legislate in a different way to enable us to do that for Scotland but not for elsewhere in the UK. The Government have sought to make sure, by writing, across the piece, to 12 million pensioners, that we are directly engaging and that people are as aware as possible. There are also campaigns going on with partners in local government and voluntary organisations, as well as a media campaign on radio, television and social media. I will certainly check, go back and review that, and if I have any concerns that it is not being done appropriately in some parts of the United Kingdom, I will very happily come back to the noble Lord.

[Lord Davies of Brixton (Lab)]

As my noble friend says—I will get it right this time—we now have the letter from the Secretary of State. I am sorry to have to press her on this, but the Government consistently fail to answer the first question raised by the committee. I asked the same question in a Written Question during the recess and, again, it was not answered. The committee wants to know,

“the offsetting cost of different levels of additional Pension Credit take-up”.

I too asked that question, and saying that the OBR has signed off the figures is not an answer.

[Baroness Sherlock (Lab)]

My Lords, I understand that the OBR listed certified costings if nobody claimed pension credit, and costings on the assumption, which was also our assumption, that there would be a five percentage-point increase in that. It seems to me that that gives the entire range, and between that, presumably one could do the sums. I think that that does answer the question.