Winter Fuel Payment

Lord Clarke of Nottingham Excerpts

Tuesday 10th June 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to my noble friend for his support for the change—I was going to say in the means test, and that is obviously exactly what his question is about. I am not sure I am expert enough to engage in a debate with him about the definition of a means test. Clearly, we are raising the level at which pensioners are entitled to and benefit from this policy. As he says, it will be paid universally to all pensioners, and those with an income over £35,000 will have the winter fuel payment recovered by HMRC through the tax system.

[Lord Clarke of Nottingham (Con)]

My Lords, this is certainly a shambolic way of conducting a government, but otherwise, I find myself unfortunately rather out of step with the exchanges so far.

The winter fuel payment had nothing to do with the level of fuel bills. It was paid to everybody, rich or poor, as a prize for reaching a certain age, which is why, at the last general election that I fought successfully as a candidate, the Conservative Party manifesto contained a commitment to abolish it. Unfortunately, we never got round to that.

The Government failed to make their case, which was exploited very successfully by Nigel Farage, so now they are introducing an extraordinarily generous means test. I quite accept that this should be means tested, but we are now going to pay it out to some of the better off households in this country. Does the Minister not accept that if the Government can somewhere find £1.5 billion to spend on the alleviation of poverty, there are very many more sensible ways of spending it that might help relieve the quite excessive levels of poverty that exist in our society at the moment? Meanwhile, I thank him for the £300 that I shall be receiving in a week or two’s time, although apparently, I shall be giving it back eventually.

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question. I am sorry that he does not share the consensus in the House on the new policy position. He is absolutely right in his characterisation of the policy. I do not know what he earns, so it is not right for me to comment on that, but if he earns above the £35,000 threshold, it will be recovered through the tax system. He describes it as an extremely generous means test. It is kind of him to say that, but it is in line with average earnings and we have decided that that is the appropriate level it should be paid at.