Social Security Advisory Committee: Winter Fuel Payment

Richard Burgon Excerpts

Tuesday 12th November 2024 Commons Chamber

[Emma Reynolds]

I do apologise for the delay in responding to the committee’s letter; it is regrettable. The initial delay, as I set out, was because we were waiting for the OBR to come forward with its costings of the policy. Then there was another, unexpected delay. There has been a delay—[Interruption.] I do not know why I am being heckled; I am trying calmly to explain why there has been a delay, for which I do apologise. We will issue a response very shortly, and certainly by the end of the week. It is important that we respond to that letter. I respect that the hon. Lady is asking that question.

Regarding the public sector equality duty, we have done everything in line with the duty, which is to provide an equality analysis of the decision that we have taken. As hon. Members will know, that analysis was published in September. However—I say this gently—after the election we found ourselves in a situation of having a £22 billion black hole, with Treasury reserves spent three times over. The OBR has said that its assessment of the previous Government’s Budget would have been materially different had it known the pressures on spending and the real situation in the Treasury. I note that the hon. Lady does not come with an apology.

We have had to take the decision to means-test winter fuel payments. We did not want to do that, but we have had to take some difficult decisions to clear up the mess, to tackle our fiscal inheritance and to start rebuilding our public services, which pensioners across the country and many others rely on.

[Richard Burgon (Leeds East) (Ind)]

Government Members will obviously not take protestations about poverty from the Conservative party with anything other than a mountain of salt. But the Government spend £1,300 billion per year and the cut to winter fuel allowance will save the Government about £1.4 billion per year, so that cut will save about 0.1% of Government spending. On that basis, as we look at all the welcome advances made in the Labour Budget—all the great stuff that we can talk about—and we consider that this measure saves only 0.1% of Government spending, I really urge the Minister to think again. I think the public would welcome that as a sign of real leadership. Not anyone or any Government always gets it right, and I believe we got it wrong on this occasion. Could the Government rethink on this issue?

[Emma Reynolds]

I am proud of the last Labour Government’s record of lifting over a million pensioners out of poverty. We do expect to make savings of about £1.4 billion this year through means-testing the winter fuel payment. That is not an insignificant proportion of the £5.5 billion of savings that the Chancellor set out on 29 July.