Oral Answers to Questions

Steve Darling Excerpts

Tuesday 3rd September 2024 Commons Chamber

[Steve Darling (Torbay) (LD)]

10. What fiscal steps she is taking to support pensioners with the cost of living.

[Caroline Voaden (South Devon) (LD)]

12. What fiscal steps she is taking to support pensioners with the cost of living.

--- Later in debate ---

[Rachel Reeves]

I understand the concerns that the hon. Lady sets out. The state pension is worth £900 more than it was a year ago and energy bills are lower this winter than they were last winter. As she points out, we inherited a £22 billion black hole from the previous Government, who had made unfunded spending commitments with no idea how to pay for them. When I became Chancellor, I undertook an immediate audit of the spending situation to understand the scale of the challenge, and I made difficult decisions—some very difficult decisions—to put the public finances on a sustainable footing. They were tough decisions, but they were the right decisions in the circumstances we faced. They included the decision to make the winter fuel payment better targeted, so pensioners who need it most will still get it alongside pension credit. Targeting the winter fuel payment will save around £1.5 billion a year to support public finances.

[Steve Darling]

Some 21,000 pensioners in my constituency of Torbay will be impacted by the cut. In Devon and Cornwall, almost 90% of pensioners will be impacted by it. While many of us acknowledge that the Chancellor was left with a massive financial challenge when she came into the post, I remain extremely concerned about the residents who have reached out to me and colleagues with their major concerns about making ends meet as we enter the winter period. They have had no time to save and it is a complete shock to them. What assurances can the Chancellor give that the Government will support those who are most vulnerable? If those measures fail, what assurances can she give that she will scrap the proposal?