Social Security

Wendy Chamberlain Excerpts

Tuesday 10th September 2024 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

Recent weeks have seen my inbox inundated with correspondence from pensioners in North East Fife, because it gets quite cold up there, who are deeply worried. I am sure—in fact, I know—that that is far from a unique experience across this House. Since the Chancellor’s announcement in late July, we have all heard the concerns of our elderly constituents. We know that the winter fuel payment provides vital support during the coldest months of the year. It is not a luxury, and the Chancellor’s decision will leave as many as 2 million people extremely worried about how they will afford their energy bills this winter.

We on the Liberal Democrat Benches accept that the new Government have been left with an unenviable task of rebuilding our economy after the mess left by the previous Government. No one is disputing that years of Conservative mismanagement have left the public finances in crisis, but this cut is simply wrong. It is wrong to strip support from many of the poorest pensioners just as energy bills are set to rise again, it is wrong to force vulnerable elderly people to make that choice between heating and eating this winter and it is the wrong answer to the challenges we face.

The way we treat the vulnerable members of our communities reflects who we are as a society. What sort of signal does it send to be turning our backs on millions of pensioners? In addition, I have campaigned consistently for unpaid carers since my election, as has my party and our leader, my right hon. Friend the Member for Kingston and Surbiton (Ed Davey). Census figures, with the proviso that Scottish census data is still awaited, suggest that almost 1.4 million people across the UK aged over 65 are providing unpaid care. Although Carers UK awaits data on how many will lose the winter fuel allowance, we know that those carers, and those they care for, are some of the most vulnerable in our society.

[Steff Aquarone (North Norfolk) (LD)]

On the disproportionate effects on certain groups, I am sure my hon. Friend is aware that North Norfolk is home to 28,000 pensioners and has the title of being the oldest constituency in the country. Many of them already face higher energy costs due to the huge number of North Norfolk homes that are off the gas grid. Does she agree that these cuts will have a disproportionate impact on older rural constituencies such as North Norfolk, and that the Government must go back to the drawing board with these misguided proposals?

[Wendy Chamberlain]

That is one thing often lost in relation to the energy price increases that we have seen in recent years: the price cap and guarantee does not support those who are using other forms of fuel. Those issues have been raised in the House before and I look forward to hearing what the Government are going to do to support those individuals.

A new Parliament represents an opportunity to move on from the chaos and misery of recent years, but this cut would be far from a fresh start. It would be a disappointing and shameful abandonment of poor and vulnerable pensioners. Age UK has strongly condemned the cut. It points out that it has been introduced with

“virtually no notice and no compensatory measures”.

I note from the debate this morning, when the Minister for Pensions was talking about compensatory measures, that there is real complexity around what will additionally be available to support people. We know the questionnaires that are needed for pension credit. We know that the household support fund has been extended, but we do not know what that will mean. We know that the £150 grant may be available for some, but after listening to the debate this morning, we are left in the position where the Government have made a decision to make the cut, but they have not properly thought through the consequences or the measures that will be available to support those most in need.

[Rebecca Harris (Castle Point) (Con)]

Does the hon. Lady agree that in 2010, when the coalition Government came in, we inherited a really serious economic crisis and a genuine black hole, and we had to make some very tough decisions as a coalition Government, but we never considered—and never did—this?

--- Later in debate ---

[Wendy Chamberlain]

Obviously, difficult decisions were made during the coalition. The Government are saying today that one of the things they are doing is continuing the triple lock. One reason why the Liberal Democrats supported and brought that move in during the coalition Government, and one reason why we continue to support it, is that still not enough has been done to best support our vulnerable pensioners.

[Pete Wishart (Perth and Kinross-shire) (SNP)]

I am sure the hon. Lady will acknowledge that Scotland has the coldest climate in the whole United Kingdom. We will be disproportionately hit. It is absurd that that will happen in energy-rich Scotland. Will she appeal to all Scottish Members to ensure their support tonight? Constituents right across Scotland will be watching carefully how Scottish Members of Parliament vote tonight, so will she encourage them to vote with us this evening?

[Wendy Chamberlain]

We all know that geographical disparities exist. There are differences in how cold parts of the country are. Different communities face differing energy costs and rates and have different means of fuel. We will be supporting the official Opposition’s motion tonight and I hope other MPs across the House do so.

Age UK has drawn attention to low take-up rates for pension credit. Around 1 million pensioners would be eligible for pension credit but do not claim it, often due to a lack of awareness. Since the Chancellor’s announcement, we have seen lots from the Government about how they are going to increase the uptake. Reports do suggest an increase in applications, but also that the wait times for that are increasing. If people are applying for pension credit and get it confirmed only after the date on which the winter fuel payment is made, will those people be caught up with?

An awareness drive is all well and good. The DWP has stated that its calculations assume an increase in the uptake of pension credit. That will still leave more than 700,000 eligible pensioners not getting pension credit, and therefore not getting winter fuel payments. Those of us in the last Parliament will remember numerous drop-ins and “dear colleagues” to outline the steps that the then Government were taking to encourage the uptake of pension credit, and what MPs could do. I remember writing regularly in my local newspaper column to outline how people could apply, but in reality the number of people taking up pension credit is stubbornly stuck at a ceiling of 70%. I would be interested to know what the Government are going to do that will be radically different in order to increase that figure.

The Government’s rationale is that an estimated £1.4 billion will be saved by means-testing the winter fuel payment, but have they made an assessment of what that saving would be if they fulfil that other stated aim of ensuring that all those eligible for pension credit claim it? Is there not a fundamental contradiction at the heart of this measure? How can the Government aim to boost pension credit on the one hand, while aiming to maximise the fiscal savings they are making through this cut? What will it cost to increase the take-up rate, and can the Secretary of State give an assurance that the Treasury will give its full support to any measures aimed at boosting the uptake of pension credit?

A separate but related issue is that of the cliff edge. Analysis by Policy in Practice shows that around 130,000 elderly people miss out on pension credit, as they are just £500 over the income threshold to claim the benefit. We know that those vulnerable elderly people will now be cut off from winter fuel payments with just a few months’ notice. That leaves me feeling that there is cruelty at the heart of this cut. Those vulnerable pensioners, who have spent years struggling under a Conservative cost of living crisis, are now faced with a double hit: an increase in the energy price cap from 1 October, alongside being stripped of those winter fuel payments.

It is important that we do not forget that energy costs are much increased from a few years ago, so arguably a winter fuel payment is needed more than ever. This House has an opportunity today to do the right thing and protect those vulnerable members of our society. The Liberal Democrats will support the official Opposition motion and oppose the move to strip pensioners of that support. I hope other Members will do the same.

[Several hon. Members rose—]