Winter Fuel Payment

Kirsty Blackman Excerpts

Wednesday 19th March 2025 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

I start by acknowledging the clear impact that I have had on the hon. Member for Cowdenbeath and Kirkcaldy (Melanie Ward). I am not sure why or how I have had that impact, but it was clear that she was drastically upset at me, despite the fact that I had been sitting quietly throughout the debate until that point.

I will talk about why the Labour Government took this decision—why the Chancellor’s first decision was to target pensioners. It was because the Government talked in their manifesto about the fiscal rules that they would put in place, and said that they would not raise taxes on working people, among a number of other policies. However, they then found themselves in a bit of a bind: “What can we do to reduce the cost in-year? What is an easy target?” The Treasury team obviously said, “Well, how about cutting the winter fuel payment? You can do that in-year. You can make the change in this Budget, in the current financial year.”

That has left the Scottish Government in a rubbish situation. Because those decisions were taken in-year, it reduced our block grant after we had set our budget in Scotland. We could not magically come up with the £147 million that the UK Government had taken from us with no warning, despite saying that they were going to reset the relationship with the Scottish Parliament. They took that money away in-year.

This is supposed to be a Labour Government. My former Procedure Committee colleague, the right hon. Member for Staffordshire Moorlands (Dame Karen Bradley), talked about the universality of benefits. I wholeheartedly agree that that is what we should have. I believe that we should have universal social security systems and universal basic income, and that everybody who deserves the social security net should be provided with it. Then we should tax non-doms, tax share buy-backs, rejoin the single market and have a more progressive tax system—like the one in Scotland—in order to pay for those things.

Universal benefits mean that, yes, absolutely, one or two millionaires who buy champagne with their winter fuel payment will get it, but they also mean that every single person who needs it will get it. The choices being made will exclude some of those millionaires, but they will also exclude the people who were freezing in the minus 1°C weather in my constituency overnight. That is a shoddy decision by the Labour Government. I do not understand what the point of Labour is just now.

--- Later in debate ---

[Andrew Western]

I will make some progress first.

There will always be those who, for whatever reason, have been unable to make sufficient provision for their retirement. The benefit system provides a vital safety net for those on low incomes who need support the most. This, of course, includes help through pension credit, worth on average £4,300 a year and which tops up income, as well as unlocking access to additional support and benefits. We know there are still low-income pensioners who are not claiming pension credit but are eligible to do so and we want everyone to get the support to which they are entitled. That is why, since September, we have been running the biggest ever pension take-up campaign. Around 1.4 million pensioner households receive pension credit, but too many have been missing out. Thanks to our campaign, we have seen 235,000 pension credit applications in the 30 weeks since the end of July last year, an 81% increase on the comparable period in 2023-24. That has led to almost 50,000 extra awards over the same period.

[Kirsty Blackman]

I wonder if the Minister can ask his friend, the hon. Member for Makerfield (Josh Simons), to get in touch with me about how he managed to find out where the 5,000 pensioners are that he was able to write to. I have tried to get that information so I can write to pensioners and tell them about pension credit, but it has not been available anywhere. If he could ask his friend to write to me, I would really appreciate it.

[Andrew Western]

I thank the hon. Lady for her intervention. I am sure she is capable of contacting my hon. Friend the Member for Makerfield herself, but I recall that he did mention that he was working closely with his local authority. I am sure it has been able to assist in that campaign, which he described as a partnership rather than his own work, to drive take-up in his area.

As detailed earlier by the Pensions Minister, we are directly targeting all pensioners who make a new claim for housing benefit, bringing together the administration of pension credit and housing benefit, and we are introducing new research on the triggers and motivations that encourage people to apply for pension credit, to guide future policymaking.

I echo the Pensions Minister’s remarks on the triple lock. It is worth repeating that over 12 million pensioners will benefit from our commitment here. Over this Parliament, up to and including 2029-30, the OBR forecasts that Government spending on the state pension will rise by over £31 billion. And there is lots of other support too, including the warm home discount and the household support fund, available to pensioners.

I will turn now to some of the other specific points raised during today’s debate. Several Members raised the delays in pension credit processing. It is important for me to recognise here the sheer volume of applications the Department received during this period. We understand that pensioners expect their applications to be processed quickly and accurately, which is why we deployed over 500 extra staff to process the huge increase. The latest statistics also show a positive picture: outstanding claims have reduced from 85,500 in mid-December to just 33,700 by 23 February, which is in line with the Department’s usual number of claims awaiting processing.

Some hon. Members raised the issue of an impact assessment at the time of the policy decision. In line with the requirements of the public sector equality duty, an equality analysis was produced as part of the ministerial decision-making process. That was published on 13 September and placed in the House of Commons Library. It assessed the effects on individuals and households according to protected characteristics set out under the Equality Act 2010. They do not include impacts on the NHS.

Other hon. Members have quoted figures on the poverty impact of the changes to winter fuel payments. I simply note that yes, internal Government modelling was produced as part of routine policy advice. Given the interest from the Work and Pensions Committee and the public interest, the Department published this modelling for transparency in a letter to the Select Committee in November. However, it is essential to note that this modelling is subject to a range of uncertainties, which should be taken into account when interpreting the results, and that it does not take into account any impact of the measures we are taking to increase pension credit take-up and ensure pensioners get the benefits to which they are entitled.