(3 weeks, 4 days ago)
Commons ChamberI thank the hon. Member for his comments and his welcome for this change; he called it the right change. He asked about different treatment of single and couple households; I can explain that in a bit more detail. Single households will receive the entire household’s winter fuel payment to the one individual, whether that is £200 or £300. If the individual’s income is below £35,000, they will keep that in full, and if the individual’s income is above £35,000, that will be recouped by HMRC unless they choose to opt out. With couples, the situation for those not receiving means-tested benefits will be as it was before July 2024, which is split payments, half to each member of the household, and then they will be individually tested against the tax system.
I thank the hon. Member for giving me the chance to clarify that point. I also entirely endorse his statement about pension credit. The reason we want to see higher rates of pension credit take-up is not because of winter fuel payment per se, because that is small relative to the financial gains that come from people who are entitled to a pension credit receiving it. We absolutely must maintain the progress on pension credit take-up in the months and years ahead. As I said in my statement, I welcome the work of MPs in their constituencies, and of local authorities and charities, in driving up those rates.
As chair of the all-party parliamentary group for ageing and older people, I really do welcome the reinstatement of the winter fuel payment for 9 million pensioners, but since the announcement to remove it, the energy price cap has gone up £281, so will the Minister take a look at the value of the winter fuel payment and perhaps turn to the industry, which over the last five years has profited by £207 billion? Perhaps it can make a greater contribution to help our poorest pensioners.
My hon. Friend is right to raise questions about energy prices—an issue for households of all ages that have been living through the cost of living crisis of recent years. The good news is that the energy price cap will be coming down in July, although I think everybody across the House would like to see it fall significantly further. This Government have been taking steps over the last 11 months to make sure that more households are getting support with their energy bills. Members will have seen the consultation on the doubling of eligibility for the warm home discount, the work to significantly increase the spending on warm home insulation—over £3 billion this year—and the extension of the household support fund. Right across the piece, for households of all ages, not just for pensioners, we do need to make sure that this is a country where more people can afford to heat their homes.
(5 months ago)
Commons ChamberIt is important that we keep driving up the take-up of pension credit, but that is not the only support available to pensioners: everyone will see the state pension rise by over 4% this April; the household support fund is very important and will be extended for another year; and the warm home discount is available to the poorest pensioners.
Government figures show that an additional 42,500 households have claimed pension credit, yet that is only about 5% of all those eligible who were not claiming it. As constituency MPs, we are having to support people who are really struggling with the cold and their financial balances. Will the Minister think about setting up a pensioner poverty taskforce, so we can really get underneath the issues facing older people?
I am sure that all Members, on both sides of the House, are providing support to their constituents—pensioners, those of working age and children—to ensure they can cope following a difficult few years for everyone because of the cost of living crisis. On pensioner poverty specifically, it is important that we update our understanding of how that has developed. If we look at the record, we see that pensioner poverty halved under the previous Labour Government, but rose by 300,000 under the Tory Government over the past 14 years.