Winter Fuel Payment

Debate between Helen Whately and Torsten Bell
Monday 9th June 2025

(3 days, 18 hours ago)

Commons Chamber
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Helen Whately Portrait Helen Whately (Faversham and Mid Kent) (Con)
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I feel for the Minister, sent here by his bosses to complete what must be the most humiliating climbdown a Government have ever faced in their first year in office. For nearly a year, the Conservatives have campaigned against this cut, and for nearly a year, the Government have tried to hold out. Just four weeks ago, I stood here and asked the Minister how long this tone-deaf final stand could go on for. Loyally, he held the line. He defended the cut one final time. He said their plan for pensioners was right on track. Well, today he has been sent to end that “courageous” last stand, and—unless it is coming next—he has been sent without the one thing that pensioners up and down the country deserve: an apology.

Let us be clear: the Government made a choice to cut the winter fuel payment. It is outrageous to claim that the economy has somehow improved from the day they made the cut, and they know it. In fact, by almost every metric, the opposite is true. Inflation was at the 2% target—now it is 1.5 points higher; 150,000 more people are unemployed; and growth forecasts have been slashed in half by the Office for Budget Responsibility. In the meantime, the Government have gone to town with the country’s credit card. Borrowing is up. Debt is up. Who is the Chancellor trying to fool when she suddenly says she can afford this when before she could not? The fact is that last winter she gave pensioners’ fuel money to the unions. Now she realises how unpopular that was, so she is pretending that everything has changed. Perhaps the most surprising thing is that she thinks anyone is taken in.

According to the Government’s own analysis, 50,000 pensioners were plunged into poverty this year and 100,000 extra pensioners ended up in A&E this winter. Their mistake has hurt people, and it is cowardly not to own up to it. Just like their personal independence payment reforms, there were no consultations or proper assessments—just a self-righteous insistence that what they are doing should not be questioned. There is certainly no thought for those affected or concern for the anxiety that their government by press release is causing. This is what happens when a Government come into office with no plan, no principles, no idea what they want to achieve and no idea how to achieve it. They just bumble from one mistake to another, breaking promise after promise. Did they think they could try out new policies like trying a new mattress—unwrap it, see how it feels, sleep on it for a while, but if it causes a political backache, send it back?

This rushed reversal raises as many questions as it answers. It is clear that when the Prime Minister stood up and made his big U-turn announcement in PMQs, he had no plan and no idea how he was going to pay for it. It is a totally unfunded spending commitment. Where is the £1.25 billion needed to pay for this U-turn coming from? I note that the Minister has kicked that can down the road until the Budget. The Government claim that the change will not permanently add to borrowing, so does that mean it will permanently add to taxation?

On the plan itself, is this really the best system of means-testing that the Government could come up with? Is the Minister sure that they have thought it through, or will this unravel, too? What happens if a pensioner earns over £35,000 a year through non-taxable income? Will they have to register for self-assessment and start filling out a tax return in their 80s or 90s? [Interruption.] You didn’t cover that.

Why should someone earning taxed income be disadvantaged? Is it fair that a millionaire pensioner and their spouse might receive a payment, but two people earning £36,000 will not? What happens if someone dies in the period between receiving the payment and having to pay it back? Will the Government go after the deceased person’s relatives?

I have two final questions. After all this, the savings for the Treasury for this coming year may be as little as £50 million. Does the Minister think it is worth it, and will he apologise?

Torsten Bell Portrait Torsten Bell
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I will deal directly with two of the questions raised because it is important to provide reassurance. The right hon. Lady asks what will happen with the estate of someone who is deceased. I want to be clear that His Majesty’s Revenue and Customs will never pursue any estate for the winter fuel payment alone. She also asks about the level of savings. As I set out in my statement, the savings will be £450 million a year in England and Wales. That is very clear, and it is a significant saving.

More broadly, the hon. Lady talks about an apology. She comes here representing the party of Liz Truss and lectures anybody else about apologies; she comes here representing the party of flatlining wages, rising debt and a 200,000 increase in pensioners in poverty, and asks anybody else to apologise. I have never heard such nonsense. We have listened to pensioners. For all her sound and fury—she was at her most furious today—I still cannot tell what the Conservatives’ policy is, 11 months on. For all the rhetoric and shouting, it sounds like she might support the means-testing of winter fuel payments. After all, that was the policy of her party’s leader, who once also supported means-testing the entire state pension in one of her bolder moments.

Conservative Members say that the policy is not much comfort to pensioners, but Age UK says the exact opposite: charity director Caroline Abrahams said that this announcement is

“the right thing to do”.

Martin Lewis says that it is a “big improvement”. [Interruption.] There is a lot of chuntering from the Conservative Front Benchers. Maybe their Back Benchers can work out what the Front-Bench policy is by the time they get to their feet in a few minutes’ time. I have no idea whatsoever what the Conservative party’s policy is.

More widely, when it comes to pensioners, the Government’s priorities are to raise the state pension and rescue the NHS. The triple lock will see state pension spending rise by £31 billion annually over this Parliament. Some £26 billion is being invested into the NHS because we inherited in England a disgraceful situation in which more than one in five pensioners aged over 75 were on waiting lists. There is no excuse for that legacy from the Conservative party. Neither of those forms of progress—raising the state pension and investing in the NHS—would be possible without the difficult decisions that we have had to make on tax. Those are difficult decisions that every Opposition party has opposed. Only this Government can provide that crucial support for pensioners, because we will do what is necessary to turn that support from rhetoric into reality.

Oral Answers to Questions

Debate between Helen Whately and Torsten Bell
Monday 12th May 2025

(1 month ago)

Commons Chamber
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Helen Whately Portrait Helen Whately (Faversham and Mid Kent) (Con)
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I suspect that the hon. Members on the Government Front Bench are now surrounded: I suspect that they are the only people left in this Chamber who are prepared to defend the cutting of the winter fuel payment. Dozens of their own MPs have now joined a long list of people telling the Government that they have got it wrong, including the Welsh First Minister—talking about learning lessons from Wales—the money-saving expert Martin Lewis, and voters up and down this country. The Conservatives have led this campaign from the start, but if the Government will not listen to us, will they now listen to everyone else and think again?

Torsten Bell Portrait Torsten Bell
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We have set out our policy, but here we are 10 months on and I have no idea what the Conservatives’ policy is. I am not even sure that they know what their policy is. For all the shouting, there is no promise to reinstate a universal winter fuel payment. There is one policy from the Leader of the Opposition, the very woman who called for the winter fuel payment to be means-tested in 2022: now, she wants to means-test the entire state pension. Apparently, that is “exactly the sort of thing we will look at”. She thinks that is bold policymaking. It is not—it is bonkers.

Lindsay Hoyle Portrait Mr Speaker
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The good news is that the Minister has no responsibility for the Opposition.

Helen Whately Portrait Helen Whately
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That is not something that the Leader of the Opposition said. To the point in hand—the winter fuel payment—I wonder for how much longer this tone-deaf final stand will go on. Every time the Government talk about winter fuel payments, they make out that they had no choice, but that is simply not true. To govern is to choose. At best, this policy was only ever going to save £1 billion or so, but they are spending £8 billion on setting up an energy company, and the cost of asylum hotels will rise to £15 billion under Labour. This has always been a choice, and it is the wrong one. Can the Minister guarantee that next winter, every single one of the 750,000 poorest pensioners who missed out on the winter fuel payment this year will receive it?

Torsten Bell Portrait Torsten Bell
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I can guarantee that this Government are going to deliver on our priorities for pensioners by raising the state pension, with a £470-a-year increase this April, and saving the NHS, with a £26 billion increase every single year. What will the Conservatives be doing? None of that, because they oppose every single measure required to fund it. We know what the Tory plan is, because we have just lived through it: pensioner poverty rising and the NHS collapsing.

Oral Answers to Questions

Debate between Helen Whately and Torsten Bell
Monday 3rd February 2025

(4 months, 1 week ago)

Commons Chamber
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Helen Whately Portrait Helen Whately (Faversham and Mid Kent) (Con)
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I welcome the Minister to his place. I have a simple question for him: how many people are still waiting for their winter fuel payment?

Torsten Bell Portrait Torsten Bell
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The largest campaign to drive up pension credit take-up is now under way, and it will continue in the years ahead. What we are seeing at present is that anyone who made their claim for pension credit before 21 December will receive their winter fuel payment when that claim is processed.

Helen Whately Portrait Helen Whately
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So the answer is that the Minister does not know. He does not know how many people are waiting for their winter fuel payment. He does not know how many people are stuck in the pension credit backlog. He does not know when they will hear about their claims. He does not know who has had help from their local council. He does not know how many people who lost their winter fuel payment have ended up in hospital this winter. He and his Department have dodged or refused to answer every single one of those questions in recent weeks. Will he commit to a full review of the winter fuel payment cut so that we can get those answers?

Torsten Bell Portrait Torsten Bell
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I will commit to fighting every day to avoid a repeat of the exercise under the last Government whereby pensioner poverty rose by 300,000, having fallen by 1 million under the last Labour Government. We will make sure that we publish details of the take-up of pension credit by the end of February.