Support for Pensioners

Steve Barclay Excerpts

Wednesday 12th February 2025 Westminster Hall

[Blake Stephenson]

I thank my hon. Friend for making such an important point. Yes, the third sector has come forward to support, but what have the Government done to the third sector? They have applied national insurance increases and reduced the threshold, causing pain and suffering for the sector that our constituents now rely on because the Government have stepped away from their responsibilities.

The support that the Government have given pensioners to cover off the impacts of their decision to cut winter fuel payments is merely the thinnest of political spin. The most prominent such cover is the extension of the household support fund, which itself is an attempt to outsource the protection of vulnerable residents to already under-pressure local authorities that should be focused on delivering high-quality public services.

But it is worse than just outsourcing the problem, because a bit of examination showed that up to be the most disappointing example of the empty words our constituents hate. Despite the spin, the truth is that the household support fund simply has not been designed with pensioners in mind. The east of England receives £32.90 per pensioner. London receives double that: £66.73. When I first saw those numbers and the Government’s description of the household support fund as mitigation for pensioners, I wondered why London’s pensioners had been deemed so much more deserving of support, so I wrote to the Secretary of State. I got the simple answer that the fund is not intended to be targeted at pensioners. The Government have even admitted to me that they do not know how much of the household support fund went to pensioners this winter. Age UK estimates that typically, £1 in every £10 the household support fund pays out goes to pensioners.

What does all that mean for our pensioners? It means more pensioners in hospital—nearly 20,000 more in November and December 2024 than in the same months in 2023, a 6.6% increase. That is 6.6% more stress on our already overstretched health services, and it is nearly 20,000 more pensioners suffering in hospital and potentially suffering lasting ill health, because this Government, which some of them voted for in the belief that they would look after them, forced them to make a choice between heating and eating. It means tens of thousands more pensioners in poverty. Those are the Government’s own statistics.

[Steve Barclay (North East Cambridgeshire) (Con)]

Does my hon. Friend think it is notable that current chief medical officer, who remains in post under this Government, in his 2023 annual report, cited specifically the concern that cold homes were a driver of hospital admissions? My hon. Friend will also note that delayed discharge from hospital is often a cause of pressure in urgent and emergency care departments, yet the Government have again delayed any changes to social care. While we all recognise that there are often challenges—indeed, as a Minister, I faced them myself—the hypocrisy of those who suggested before the election that there were simple solutions, and yet are now taking decisions that are actively leading to elderly, frail patients being admitted to hospital, at the same time as other decisions are deliberately delayed, is striking.

[Blake Stephenson]

I thank my right hon. Friend for that intervention. My original speech had an element of social care in it, but I took it out, so I am pleased that he brought that up. This Government have kicked social care reform down the road, and we can kick it down the road no longer. We have to face up to these difficult and tough decisions. There are no simple answers to these things, but my right hon. Friend makes a good point and I agree with him.

I have used the example of winter fuel payments to demonstrate a simple truth. This Government told pensioners that they were on their side. They campaigned for their votes. The Pensions Minister—again, I have been watching his X or Twitter—was even at the pensioners club in Swansea just days before the general election, no doubt reassuring them that he was on their side. Perhaps when he comes to respond he will tell us what he was doing. They have let our pensioners down, without apology, without owning their decision, and without any care for what it might mean for millions of the most vulnerable people in our society.

Now the 9.2 million pensioners—13.5% of the UK population—who are losing their winter fuel payment see the Government talking about sending money that could pay for it many times over to Mauritius. If they care about helping pensioners, they are out of their depth. They did not think about the impact of their decisions and have not bothered to monitor it. If they do not care, they gave pensioners false hope and took it away as soon as the votes were counted. What a sad state of affairs.

On too many issues, the Labour party was happy to talk the talk in opposition, but is unwilling to, or perhaps incapable of, walking the walk in government. In June, the now Work and Pensions Secretary decried the number of pensioners paying tax going up under the Conservatives. In November 2023, the now Chancellor said that the Government were picking people’s pockets by not increasing tax thresholds. Now that the Labour Government are in charge, an estimated 2 million more pensioners will be paying tax by 2032. Time and again we see the same old Labour party, which will say anything to get votes and nothing to help when in government.

--- Later in debate ---

[Jim Shannon]

Yes, it is disappointing, and I cannot ignore that fact. I always like to think that good people come together, reach out and try to address those issues, but the hon. Gentleman is right that they should not have to.

In September 2023, NEA undertook a Northern Ireland-wide representative survey to assess the impact of energy prices on households. The survey found that 41% of households in Northern Ireland were spending at least 10% of their total household expenditure on energy costs, and were therefore in fuel poverty. The continued pressure on household budgets has led to a rise in detrimental coping mechanisms. Those systems that should be in place to help are clearly unable to. For example, 19% of households told the survey that they had gone without heating oil, gas or electricity in the past 24 months because they were unable to afford energy. One in 10 households admitted to skipping meals to ensure they had enough money to pay for energy. Others have referred to that.

The pensioners I speak to are vulnerable, have complex health needs and have disability issues. Sometimes they have no family. As others have said, they have to look after themselves, but they are unable to. That dismays me greatly. Data shows that close to one in five households over over-60s are now in such severe fuel poverty that their homes are being kept in a condition that “endangers the health” of the inhabitants.

What happens when someone cannot heat their house? The house deteriorates, the mould grows and the damp grows. It is a fact: people have to have a level of heat in their houses; otherwise, they will deteriorate. That is an impact that is perhaps not often seen. The hon. Member for Aberdeenshire North and Moray East will remember the debate this morning in which a constituent was mentioned: an elderly person, over 70, who was living in a house with a leak in the roof. He did not have the ability to fix it, had no family to fall back on and did not qualify for any grants for it. The deterioration of houses cannot be ignored.

Fuel poverty among pensioners is dangerous and must be addressed. I recently went to the home of a lady who was applying for attendance allowance. I am no better than anybody else, but I know how to fill in forms—I know how to do all the benefit forms, and I have done them for umpteen years; I know how they work, and I know the right words to say on behalf of a deserving constituent. When I was on the election trail in July, going round the doors, I acquired between 80 and 90 attendance allowance forms. Those constituents did not qualify for pension credit, but we were able to get them on to attendance allowance, as I will explain with one of my examples. Those forms take at least an hour to fill in, and I have a staff member who does nothing but fill in forms five days a week—sometimes six.

Let us be honest: I am no spring chicken any more. I am a pensioner and I will be reaching quite a significant figure shortly, but I am pretty strong. I think I am strapping, although I am not sure whether my wife agrees—she is the one who really matters. I know that the hon. Member for Aberdeenshire North and Moray East has a great interest in shooting; I could probably stand shooting for the best part of the day in cold weather, as long as the pheasants and the pigeons kept coming over my head.

[Steve Barclay]

Not only standing, but I recall that in the debate on Monday, the hon. Gentleman was sitting next to the Minister, such was the pressure on seats. Given that none of the Minister’s colleagues have bothered to come to the debate, perhaps he might consider sitting over there again and giving the Minister a little company.

As other hon. Members did, the hon. Gentleman is talking quite rightly about the speed and the targeting of the policy. The point is that it was a choice. There is a debate to be had about universal benefits and targeted benefits, but the speed with which it was done meant that some of the targeting, such as for pension credit, was not addressed. That has caused the cliff edge that hon. Members on both sides of the House have spoken about, so that if someone is just over the threshold, they lose out entirely.

On choices, the Government have chosen to fund not just the Chagos deal, as my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) said, but the above-inflation pay rises to trade union workforces such as train drivers. The hardship cases set out by the hon. Member for Strangford (Jim Shannon) and others show that this issue is not about a wider debate on the economy, the mistakes made in the Budget or their effect on our growth projections, but about choice. The Government have chosen to give money to their other priorities—but before the election, they told pensioners that they would choose to prioritise them.

[Dame Siobhain McDonagh (in the Chair)]

Order. The right hon. Member is a man of great of experience and he knows that this is an intervention, rather than a speech.

--- Later in debate ---

[Torsten Bell]

The hon. Member raises an important point. Attendance allowance would entitle a pensioner to extra income to pay for extra costs, including heating if required, but it would also lead to a higher threshold for qualification for pension credit. However, he is right that we need to see people applying for those benefits.

As I was saying, the last 15 years tell us that we need to do more for pensioners, and that returns on private pension savings matter too. We are undertaking a comprehensive pensions review to ensure that the pensions system is fit for the future, building on the success of auto-enrolment, which was introduced under the last Government and has seen over 11 million employees saving into a workplace pension. That is one of the big areas of progress in the pensions landscape in the last 25 years.

The Government are committed to further reforming our pensions landscape, so that it drives up both economic growth and returns to savers, via the upcoming pension schemes Bill. We need bigger and better pension funds investing in productive assets such as infrastructure. We need to help individuals consolidate small pension pots and have sight of them via the pensions dashboard, so that they can plan for security in retirement. The measures in the Bill could help the average earner who saves over their lifetime have over £11,000 more in their pension pot when they come to retire.

[Steve Barclay]

The central justification that the Government give for taking away winter fuel payments is the fiscal position, but then they say that they want people to take up pension credit, which comes at a cost. Could the Minister say how many people would need to take up pension credit to cancel out the fiscal benefit? If that were to happen, it would undermine the central premise on which he is putting forward the policy.

[Torsten Bell]

That argument is made a lot. All I would say is that all of us should want all pensioners to receive the benefits they are entitled to and to drive pension credit take-up. We are confident that this policy will deliver significant savings, and the costings put into the Budget in the autumn take into account an increase in pension credit take-up.

For most pensioners I speak to, concerns about the state of the health service are front of mind. The biggest betrayal of pensioners today is the state of our NHS—run down in England and undermined in Wales, with the capital budgets handed down by the UK Government to the Welsh Government not remotely sufficient to maintain the NHS estate or to invest in badly needed diagnostic equipment.