Winter Fuel Payment Debate
Full Debate: Read Full DebateHelen Whately
Main Page: Helen Whately (Conservative - Faversham and Mid Kent)Department Debates - View all Helen Whately's debates with the Department for Work and Pensions
(2 days, 19 hours ago)
Commons ChamberI beg to move,
That this House calls on the Government to publish data on the number of eligible pensioners it estimates did not receive the Winter Fuel Payment in 2024–25; further calls on the Government to publish data showing the impact of changes to the Winter Fuel Payment on levels of pensioner poverty and the number of hospital admissions; also calls on the Government to set out how it intends to ensure that those eligible for Pension Credit receive it before winter 2025-26; and calls on the Government to apologise for the misery caused to vulnerable pensioners in winter 2024–25.
Now that the sun has come out, I suspect that many of us will quickly forget the chill of the winter—the evenings when it was freezing outside and we reached for our jumpers, and perhaps the switch on our central heating too. However, for many pensioners turning up the heating was not an option, because one of the Chancellor’s first acts in her new job last year was to scrap the winter fuel payment for 10 million pensioners—something of which she gave no hint before the election, a time when voters rightly expect political parties to spell out their plans. As a result, millions of older people, many with fixed and far from substantial incomes and many living in draughty homes, missed out on £300 this winter. That money makes all the difference. In fact, for some it is literally a choice between heating and eating. At the same time, energy bills went up. Before the election, the Government did not say they would cut the winter fuel payment, but they did promise to bring our energy bills down—by £300, in fact. Instead, they are up by about £170. It was a promise so easily made and so carelessly broken.
Labour Members may not like hearing this, but let us pause for a minute to think about what this means in human terms. I remember well my grandmother in her 90s in layers of jumpers, shawls and blankets in winter, even when she had the heating on. In fact, I remember well giving her a woollen shawl as a Christmas present, because she was always cold. I would describe myself as someone who feels the cold, but I know that what I feel on a winter’s day is not a patch on how someone in their 80s or 90s feels, especially if they have health problems, and I know from my time as a Health Minister about the connection between being cold and ending up in hospital.
To help get the winter fuel payment cut past Labour Back Benchers, some of whom do have consciences, the Government claimed that they were going to protect the most vulnerable because those on pension credit would still get it, but let us look at what that really means in practice—at the facts. Pension credit tops up a pensioner’s weekly income to £218.15 if they are single or, if they have a partner, to £332.95 jointly. Someone with an annual income of £11,500 could be ineligible for pension credit. They may be just £1 or £2 over the threshold, but because of the cliff edge, they do not get pension credit and, as a result of the Government’s cut, they would not get the winter fuel payment either. So we are not talking about rich people.
I certainly remember, and I am sure others will, the Government saying that those with the broadest shoulders would take the strain. Does the shadow Secretary of State consider those on this level of income to have the broadest shoulders?
My hon. Friend makes exactly the important point I am making, which is that if the Government thought what they were doing would affect just the very wealthiest in society, they were very wrong.
Is it not very telling that, although when this policy was voted on in this House in September the Government had a majority of 120, there are very few Labour MPs on the Government Benches to defend their own policy in this debate?
My right hon. Friend is exactly right. As I said a moment ago, I do believe that some Labour Members have consciences, but I am not sure which ones. Are those with consciences the ones who are hiding away from the Chamber because they feel guilty and do not want to hear this debate, or the hon. Members here who are actually going to stand up in support of pensioners and join us in the Lobby later.
I am looking forward to the opening speech of the Under-Secretary of State for Work and Pensions, the hon. Member for Swansea West (Torsten Bell), because if we see the same sympathy that he showed for people in his “Newsnight” interview last night, we should be in for a treat.
When the Government put forward their proposals, they claimed that they were going to save £1 billion. However, the amount of money they would be paying out with the increased uptake of pension credit was going to cost £3.5 billion at that time. Does the shadow Secretary of State have up-to-date figures on whether this policy will actually deliver a saving for the Government?
One of the things we would very much like to see is a full set of figures from the Government, but my hon. Friend makes a very important point. The Government said they wanted everyone who was eligible to sign up for pension credit and therefore be able to access the winter fuel payment, but if everyone had actually signed up for pension credit, the Government would not have saved the money they set out that the policy would save.
The Department for Work and Pensions states that it works to a planned timescale of 50 working days for processing applications. However, on 9 December, in response to my written question, it turned out that, at its peak just before the coldest period, it was 87 working days. Even now, the answer is that it takes on average 56 working days to get pension credit sorted. That is a problem, because the Government directed people to pension credit who cannot then get access to it when they need it, at the coldest time of the year. Is that not a despicable decision?
Yes. My hon. Friend makes a really important point. He has been every effective in his use of parliamentary questions to scrutinise the Government and get data from them—they do not like to give it willingly. He identifies the long delays for pension credit approvals and therefore access to winter fuel payment. Some will have applied before the deadline for pension credit and got the whole way through winter without getting money, or even knowing whether they were going to get any money. We know well from charities such as Age UK, which represents pensioners, that pensioners are very reluctant to get themselves into debt. If they did not know whether they were getting the payment, they would have been very reluctant to spend money in the hope that they might.
Let me make a little progress and then I will be delighted to take more interventions from colleagues.
The Chancellor has previously argued that winter fuel payments should be means-tested and cut for the richest pensioners, but who here thinks that someone on an income of £11,500 is rich? Age UK estimated that over 80% of pensioners living below or only just above the poverty line would lose their winter fuel payment.
The issue is not just that low-income vulnerable pensioners miss out on help with their heating because they are just above the pension credit threshold—the problem is worse than that. Last summer, the Government knew that over 800,000 people may be eligible for pension credit but did not claim it, meaning that they, too, would miss out on the winter fuel payment. The Pensions Minister at the time, the hon. Member for Wycombe (Emma Reynolds), assured us that the Government would get on top of that. In fact, she told us that her target was to have 100% of those eligible for pension credit claiming it. But here we are many months later, and still around three quarters of a million eligible pensioners are not on pension credit. That is another promise easily made but easily broken. There has been a woeful failure by the Government to close properly that gap, despite all the coverage the winter fuel payment received.
Of course, we knew that this would be hard. We, too, had pension credit uptake campaigns in Government. More people signed up, but still many did not. I expect the Government knew that they would fail, too. Their officials would have told them, but it was easier for them to assure the press, the charities and their Back Benchers, “Don’t worry,” just as we have heard their Ministers do about the welfare reforms in the last 24 hours. For them, it was easier to wait for the spring to come and hope that everyone would simply forget. Well I say to them, “We won’t let you forget.” Nor will millions of pensioners and their families: 10 million pensioners are missing out on help with their heating, among them around 1 million of the most vulnerable people in our country, quite literally left in the cold by this Labour Government. That will not be forgotten in a hurry.
My hon. Friend is making a powerful speech. It is absolutely right that we ask the questions we are asking today. The statistic that has shocked me most in this debate is that of the millions of pensioners who lost their winter fuel payment, 44,000 are estimated to have been terminally ill. Is she as shocked as I am by that statistic?
I was indeed extremely shocked by that statistic; that is one reason why we need to have this debate today and try to get some of the data out of the Government. They were at the time, and continue to be, incredibly reluctant to share whatever they know about the impact of this cut on people, including the terminally ill.
Going back to data, this policy does not just impact pensioners, because the Government seconded 500 extra staff to try to deal with pension credit. We know, from another written answer, that those staff came from the services handling child maintenance, counter fraud, compliance and debt, so there is going to be an ongoing impact. Do the Government not need to be transparent about the impact on the Departments that have had to move staff across to try to deal with their own policy?
My hon. Friend makes an important point about transparency, and he recognises that this policy has had an impact not only on pensioners, but on other parts of Government, and therefore on other constituents. It is another thing that I hope the Government Back Benchers in the Chamber are taking note of, to pass on to their colleagues who, for some reason, have chosen not to be present to discuss this topic this afternoon.
My hon. Friend is being exceptionally generous in giving way. Does she agree that the Government need to be completely transparent about the costs of this policy? It has been estimated that it will cost the NHS—already pressed—£169 million. We know from NHS England that 100,000 extra people aged 65 or over have been through A&E this relatively warm winter. Is this policy not a case of robbing Peter to pay Paul?
My right hon. Friend, given his experience in this area, will know very well the connection between heating and health, particularly for older people. The Government must surely ensure that they understand the knock-on impact of the cut to the winter fuel payment on older people’s health, and therefore on admissions to hospital and on hospitals’ ability to cope. As we know, there are then the consequences for older people, who, when admitted to hospital, often end up having long hospital stays, with significant loss of independence and reduction in quality of life as a result.
I will continue, because I know that many Members wish to speak this afternoon—at least on the Opposition Benches.
From the moment the Government announced this policy, we were deeply concerned about the impact it would have, which is why we led the opposition to the cut, and why we forced a vote on it back in September. The vote was a chance for Labour MPs to make a stand. Instead, 348 Labour MPs chose to support the winter fuel payment cut. We then saw the Government trying to avoid telling people the impact the cut would actually have, so we are trying again today.
I put it to the Minister that now is his chance to be straight with people. What did the Government know when the cut was announced? Did they know how many pensioners would miss out? Did they know how many would end up in hospital? Their own report from 2017 found that cutting the winter fuel payment could cause nearly 4,000 pensioners to die. Did Ministers ask if that was likely to happen this winter? I would be happy to give way to him if he wanted to answer my questions right now, but, given they have not been answered for months, I fear he will not.
I will in a moment—I was hoping the Minister might have answers, but he does not.
To this day, the Government have not published a full impact assessment setting out the truth about their policies. Is that because they do not know themselves, or because they do not want to admit the harm that they were willing to do?
Thanks to the effort of colleagues and the public, we have, however, been able to glean some information in the months since. The Secretary of State admitted to the Work and Pensions Committee that she had seen internal modelling showing that 100,000 pensioners would be pushed into poverty because of their political choices. Thanks to a freedom of information request, the Government were forced to publish their equality analysis, showing that 71% of people with a disability would lose their winter fuel payment, while official NHS data shows that the number of over-65s attending A&E this winter soared by nearly 100,000 compared with last year, despite this being a less cold year.
And now, as I have said, it feels as if spring is here. It is time for the Government to be honest with the public and tell us what this policy has done in practice. I hope they will not tell us that they did not monitor the results, because that surely is not credible. It is time to tell us how many eligible pensioners did not receive the winter fuel payment this year; time to tell us how the cuts have hit pensioner poverty; and time to tell us what those cuts did to hospital admissions. Ministers need to know this information so that they can prepare responsibly for next year. Back Benchers need to know this information so that they can represent their constituents effectively. And the public deserve to know the consequence of the actions of the Government they elected.
Will the shadow Minister be honest with the House, and honest with pensioners: how many would be affected, and by how much, by the means-testing of the state pension, to which the Leader of the Opposition is committed?
Will the shadow Minister tell the House how many pensioners would be impacted by the Leader of the Opposition’s plan to means-test the state pension, and by how much?
I do not want to fall into the same trap as the hon. Lady did when she made those accusations. What she has just said does not describe the position of the Leader of the Opposition. I also remind her that today is an opportunity for the Government to answer questions, and that is what she should be looking to the Minister, rather than the shadow Minister, to do.
I have always said that it is absolute nonsense that somebody like me, who is still working, and my wife, who is still working, should receive the winter fuel allowance. We were going to address that, which was right—so we should have done. If that is what is called means-testing, then I am perfectly happy with that. But what we were not going to do was to take money from the pockets of the poorest pensioners in the country, and that is what this Government have done.
I could not have made the point better than my right hon. Friend.
I have one final question before I conclude: what was all this for? We clearly know who lost out and who suffered as a result of the cut to the winter fuel payment, but who benefited? To govern is to choose. All those who got inflation-busting pay increases after Labour did its deals with its trade union friends were the ones to benefit. Billions for the unions, but nothing for the pensioners. This will be the legacy of yet another Labour Government. The last one increased the state pension by just 75p a week; this one have taken away the winter fuel payment.
By contrast, it was the Conservatives who introduced and protected the triple lock, which saw the state pension increase by £3,700 during our time in office; it was the Conservatives who reduced the number of pensioners living in absolute poverty by 200,000—Labour will undo that by a quarter in its first year—and it was the Conservatives who delivered nearly £12 million in winter fuel payments and cost of living payments for pensioners, because we understand the need to help the most vulnerable through the winter. It is astonishing how many people Labour has already let down in just eight months—pensioners, farmers, business owners, young people looking for jobs, and, yesterday, disabled people—in its rush to fix its financial mess.
Earlier we heard the Prime Minister say that if a party has a big majority, it does not need to consult, so the onus is on all of us here. Colleagues, and especially Labour Members, have an opportunity today to make the Government listen. It is a chance to stick to our principles, stick up for our constituents and vote to see the truth.
Before I begin, will the shadow Secretary of State, the hon. Member for Faversham and Mid Kent (Helen Whately), clarify her earlier comments? Does she not support pay rises for the armed forces? [Interruption.] She is more than welcome to clarify; I can see that she looks a bit confused.
The hon. Lady asks about something that I have never said, so I was surprised to hear it.
I very much thank the hon. Lady for those comments. I know she vociferously criticised pay rises for public sector workers in her speech, so I am glad to have clarified that.
The winter fuel payment was a policy that the Labour Government introduced in 1997, and it stands as one of the great achievements of that Labour Administration. When it was brought in, pensioner poverty was significantly higher than what we face today, and it made a real difference to many pensioners who were struggling with heating, eating, and many other living costs. Along with many things that that Government achieved, we had the shortest NHS waiting times in history, we brought crime down, and we created Sure Start, which made a difference to many young people’s lives. We had record results in schools, we introduced the Disability Discrimination Act 2005, and we brought in the first ever Climate Change Act in 2008. All those things made a huge difference to the lives of people in this country, in particular pensioners.