Winter Fuel Payment

Iain Duncan Smith Excerpts

Wednesday 19th March 2025 Commons Chamber

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

The Treasury always says to every new Government, “We have this jolly good idea. Just get rid of the winter fuel payment and save yourselves a lot of money.” We looked at that when I was in the Department and eventually rejected it based on two elements of the impact assessment. First, there was the point about those who were right on the cusp of poverty—80% of them, as has been mentioned, will be damaged by the policy. Secondly, there is pension credit take-up. We get hammered either way, because if we push for pensioners to take up pension credit, the savings are lost and we spend more, but if they do not take it up, they end up in poverty. That was why we rejected the idea and, I think, every other Government up until now have too. Will the Minister have another review of that and ask his team at the DWP whether they should reject this policy now, because it will not work?

[Torsten Bell]

On the question of savings, this measure will make savings, even taking into account the increase in take-up; the evidence of that is very clear. I will also just reflect on the right hon. Gentleman’s point that his party’s Government did not take up the opportunity that the Treasury presented to means-test winter fuel payments. The truth is that the last Government and the new Labour regime before that allowed pension credit to be eroded year after year by inflation. Since the period when he considered the measure, there has been over 50% inflation erosion, so the policy of the previous Government was to cut the winter fuel payment year after year. In real terms, I am afraid that is how inflation operates.

We will not just carry out research; we will put the evidence that it provides into practice. I welcome suggestions from right across the House on what more we can do to drive take-up of pension credit.

--- Later in debate ---

[Torsten Bell]

I have heard from many Members the point the hon. Member makes about the different ways people heat homes, particularly in certain parts of the country, including Northern Ireland. I would be happy to talk to her about that specific suggestion, having asked for suggestions earlier.

As I said earlier, our top priorities are to raise the state pension and to rescue the NHS, which pensioners in particular rely on. It is precisely because the Government have taken some difficult choices that we are committed to delivering on the triple lock throughout this Parliament. It is true that targeting winter fuel payments saves a bit over £1 billion a year, but spending on the state pension is forecast to rise by over £31 billion—

[Sir Iain Duncan Smith]

indicated dissent.

[Torsten Bell]

I have already engaged with the right hon. Member.

Spending on the state pension is forecast to rise by over £31 billion during this Parliament, which puts that into context. What does this mean for individual pensioners? The full new state pension is expected to rise by around £1,900 a year, and the basic state pension by around £1,500, benefiting over 12 million pensioners.

Then there is the health service, the state of which is the biggest betrayal of older generations today. The Conservatives left pensioners far too often not receiving the care and support they deserve and need. We are investing and reforming the English NHS through the 10-year plan by abolishing NHS England so Ministers are accountable for the health service once again. For pensioners who have spent their lives paying into the system, our priority is to ensure a resilient NHS that gives back to them at a time when they need it most.