Support for Pensioners

Wendy Morton Excerpts

Wednesday 12th February 2025 Westminster Hall

[Blake Stephenson]

I had noted the same, but I was going to wait until the end of the debate to see if any sneaked in. Perhaps the Whips are calling them now—who knows? We will see whether any turn up to defend the current Government’s record.

The simple reality is that hope for more support was misplaced. Instead, energy bills are up and support for vulnerable pensioners has been cut. The Prime Minister said in April that Britain’s pensioners want politicians who will be straight with them, and I agree. Here is the truth: whatever the failings of the previous Government, and whatever difficulties they had grappling with the impacts of covid, the invasion of Ukraine and their own missteps at times, they always tried to support pensioners. As recently as March last year, the now Pensions Minister, the hon. Member for Swansea West (Torsten Bell), admitted on social media that

“pensioners are an average of £1,000 better off”

as a result of policies since 2010. He may want to reflect on that when he sums up this debate.

Last winter, Gary might well have received £600 from his winter fuel payment and his pensioner cost of living payment; this winter, he might well have received nothing. Like an estimated 9.2 million pensioners who lost their winter fuel payment this winter, Gary may have found himself without the vital support he received last winter to make that choice between heating and eating a little less difficult.

[Wendy Morton (Aldridge-Brownhills) (Con)]

My hon. Friend is making some really important points, particularly with the examples of pensioners who find themselves trapped. The crux of this issue the unfairness, but it is also about the speed with which this policy decision—this political choice—was made. Even as recently as 27 April 2024, the now Prime Minister was saying:

“Britain’s pensioners deserve better. They deserve certainty, and for politicians to be straight with them so they can plan their lives.”

This is not an example of fairness, it is not an example of certainty, and it is certainly not an example of being straight with pensioners.

[Blake Stephenson]

I absolutely agree with my right hon. Friend, and I will come on to the importance of certainty and stability when it comes to pensions, so that people can plan for their futures, regardless of their age. For the Government to pull the rug out from under the feet of vulnerable pensioners with little or no notice at all is absolutely shameful.

Gary has seen the Government that he voted for with hope and optimism for a better life snatch away the lifeline he relied on. If he is on the old basic state pension, he will have seen 86.5% of his triple lock-backed increase snatched back. Indeed, he could well find that it will take until 2027-28 for his income to reach the level that he might have expected to see this winter.

Gary is not alone, because although this Government talk about millionaire pensioners being able to cope, for many of the 9.2 million pensioners losing their winter fuel payment, that really was vital support. The average pensioner, far from being the millionaire fat cat that the Government would like us all to imagine, earns just over £22,000 per year—similar to the income of a worker on the living wage. The level at which the threshold to keep winter fuel payments was set for a single pensioner means that someone could be bringing in less than £1,000 per month and now be one of the “millionaire pensioners” on whose shoulders the Government have chosen to balance the books.

Age UK estimates that 2.5 million pensioners living in poverty or just above the poverty line, including 1.1 million pensioners with a disability, will lose their winter fuel payment. I have heard so many stories from constituents in Mid Bedfordshire about the impact that that will have on them—stories of people who have had to make the stark choice between heating and eating this winter. I heard from a constituent who now cannot shower, who cooks a hot meal just once a week, and who can turn on their heating only when it is “unbearably freezing”. One constituent told me of the struggles to keep their 92-year-old father warm. Their father has dementia, and he keeps worrying about the bills.

--- Later in debate ---

[Blake Stephenson]

Indeed, the winter fuel allowance is one example of many broken promises. I know that my constituents feel let down by this Labour Government, and I thank my hon. Friend for raising some pertinent examples from his constituency.

Where do we go from here? Well, I am here to help the Government with some simple ways in which they can help our pensioners.

[Wendy Morton]

I don’t think they are listening.

[Blake Stephenson]

I do not think they are listening either, but let’s try. The Minister for Employment has told me previously about the Government’s desire to help pensioners reduce their energy bills, and I agree. There was a flagship policy in Labour’s manifesto, but good intentions alone are not enough to reduce energy bills. The Government’s Great British Energy pet project will not produce any energy. It will not employ anything near the number of people they said it would, and its boss cannot say when it will reduce energy bills. For many pensioners, that simply will not be soon enough. It is not just the Government’s GB Energy plans that are a mirage. They want to improve energy efficiency, but they cannot say where their warm home grants will be spent. They cannot say how many of the worst impacted properties off the energy grid are listed buildings that would need more specialist support.

All the energy wasted on plans that will not bring down energy bills could have been better spent taking real steps to reduce them. While the Government have been talking about reducing energy bills, they have gone up by £170. Our pensioners deserve better. They deserve real, focused action to drive up energy efficiency and drive down energy bills.

From the private sector I know that the old axiom “what gets measured gets done” is more than a cliché. The Government need to start taking seriously getting every single person eligible for pension credit signed up for it. To do that, they need to set out a credible, measurable plan with targets that we can all hold them to account on. Our pensioners deserve better. They deserve a real focus to make sure that the most vulnerable pensioners get the help they need. Getting them that help will also help the Government in their mission to grow the economy.

Independent Age found that spending an additional £2.1 billion on pension credit for all eligible pensioners would save the NHS and social care around £4 billion. That is extra money to spend on the Government’s priorities—growing the economy and delivering better public services while protecting the most vulnerable pensioners. We must also go further to ensure that the Government are able to support both the pensioners of today and the pensioners of tomorrow. People need confidence and certainty in pensions to plan. That is a lesson we must learn from the winter fuel fiasco, and indeed from the legacy of the Women Against State Pension Inequality Campaign. Politicians cannot continue to promise things that cannot be delivered. We have a duty in this place to deliver the things we promise. That means ensuring that we put the state pension on a long-term sustainable footing with a plan that looks to the future.

During this Parliament we must clearly communicate to the young people starting work now the support that they can expect to receive from the state when they retire, so that from their first days in work young people can start to plan for a comfortable retirement. We must get pensions reform right—I think the Minister will agree with that—so that young people have good choices available to them as they build financially secure futures. In doing so, we can build greater financial resilience so that the next generation of pensioners, and those that come after, will never have to worry about choosing between heating and eating again. To do anything else would be a dereliction of the duty we have been entrusted with by our constituents.

The Government promised pensioners that they would deliver for them. Instead, they have chosen to balance the books on the backs of people who cannot simply turn around and go back to work, and who cannot find an extra £50 behind the sofa to turn on the heating this week. Although the Government can hide behind shameful, politically driven characterisations of some of the poorest in our society as millionaire pensioners to justify snatching away vital support, pensioners know the truth. Labour were elected on a promise to make pensioners’ lives easier; they have done the opposite. Over the next four years we all have a duty to do better for the pensioners of today and the pensioners of tomorrow. I hope that the Government will get a grip quickly and rise to that challenge.

--- Later in debate ---

[Wendy Morton (Aldridge-Brownhills) (Con)]

I am grateful to my hon. Friend the Member for Mid Bedfordshire (Blake Stephenson) for securing today’s debate. As others have pointed out, it is rather sad that the Labour Benches are empty today. I can only guess that Labour Members are not interested in this issue, or perhaps they did not receive the message from the Whips suggesting that they come along.

We on the Conservative Benches speak to our constituents day in, day out. We knock on doors and listen to people, and we know that this issue is not going away. Thousands and thousands—millions—of pensioners out there are hurting, and they are worried about the lack of the winter fuel payment. To some, £300 may not seem like very much, but perhaps the Minister needs to be made aware that to someone on a fixed or low income, £300 is literally the difference between heating and eating. It enables them to turn their heating up when the winter weather hits. People who do not get the winter fuel payment will not get the cold weather payment either, so it is not just a single whammy; it has a multiplying effect.

One of the most shocking, or saddest, things about this issue is that it was literally days into this Labour Government’s tenure that the Chancellor announced that she was scrapping the winter fuel payment, and just weeks ahead of the winter. We are still only in February—we have not seen the winter through yet—and we have already witnessed and felt plummeting temperatures. Our pensioners have had no time to prepare for this; no time to try to save, or to work out whether they can afford to have a bit of extra insulation in their homes. They have had no time to even fill in the form to apply for pension credit, hoping that they might be eligible for it.

We have spoken today about the third sector helping our pensioners. Some pensioners go to the third sector for help with filling in their pension credit application form. I do not know whether the Minister has actually seen that form, but believe you me, I have. It is pages and pages—questions upon questions. I opened that document and thought, “Oh my goodness, where do I start?” I would like to think that I am quite intelligent and technologically minded, but even I found that form to be an absolute nightmare, so how does a person who is 83 and is sitting at home feel? Those pensioners might not have somebody who can help them to fill in that form, so they are excluded—not just digitally excluded, but excluded from being kept warm. I hope that the Government are listening today.

I have also tabled a series of written parliamentary questions, because it was clear from the very beginning that the Government had not made a full assessment of what the situation looked like and what it might look like. That includes the impact on our health services and on social care, but fundamentally, this is about the impact on pensioners sitting at home and on their health. I have often struggled to get meaningful answers out of the DWP. I must admit that I table quite a lot of written questions and ask a lot of questions in the main Chamber, as my constituents would expect me to do, but of late, I have been trying to find out something really important: how many people who are eligible for pension credit were waiting for their winter fuel payment at the end of last year, and again as of 31 January. The DWP replied:

“Where the customer is eligible for a Winter Fuel Payment, the Department aims to make this payment within 2 weeks of the award of Pension Credit. Customers won’t miss out on Winter Fuel Payments even if their qualifying benefit takes longer to process than usual.”

I remind the Department and Ministers that some people cannot wait—they need that money. They need that payment to be processed now, while we are in the winter period. Those people have their bills to pay now, so I gently urge the Minister to do anything that he can to speed up payments to those who are eligible. That would be one tiny thing that might help some people.

We rightly talk a lot about the people who are eligible, but there is also a big group of pensioners who are just over the threshold. They are the ones who are really hurting because they qualify for nothing. Pension credit is, I think, classed as a trigger benefit. If someone gets pension credit, it triggers the winter fuel payment. It is all means-tested. I completely understand that, but as I say, there are pensioners who are getting absolutely nothing. They are the ones who are really facing hard decisions. “Shall I put the heating on today? Shall I put the oven on today? Actually, I can’t afford to put the oven on. I don’t have a microwave. I might have to have a cold lunch.” That is no good if you are ageing and in ill health.

The other anomaly that I want to raise is someone who is on attendance allowance but seriously ill. They do not have a huge amount of money, but are over the current eligibility level for pension credit. They are missing out on winter fuel payments as well, and they are often the people who really need extra heating at home. Again, it is the difference between keeping warm or not. We know that some people spend more time in bed in the hope that they can keep warm. For all the wonderful work that our churches and community organisations do providing places of welcome and helping in the community, a whole group of people cannot even leave their homes because of mobility and health issues. If we are not there to support them, what is their life like? Does it mean just lying in bed, feeling more and more isolated? We already know that social isolation is a problem among older people.

I could go on and on, but I will resist doing so. We know that 14% of pensioners are in destitute poverty. Can we imagine what that must be like? I find it incredible that a Labour Government have made this callous decision on winter fuel. For those who are in receipt of pension credit, how can the Government continue to justify this policy? People are not being treated fairly, while at the same time the Government are in discussions with the Mauritian Government. We hear the sum of £18 billion talked about. The Government deny that, often saying that it is £9 billion. I frankly do not care whether it is £9 billion or £18 billion. I have strong views on what is happening with regard to the Chagos islands, but when we relate it to the winter fuel allowance, as I believe my hon. Friend the Member for West Worcestershire (Dame Harriett Baldwin) did in the House the other day, when she highlighted that that money is enough to pay winter fuel payments to all pensioners for the next 12 years, I think that starts to give some context about where the Government’s priorities lie.

--- Later in debate ---

[Rebecca Smith]

Sorry, I meant to say Wokingham. I had circled “Swansea West” in my notes; I was trying to be clever—forgive me. Anyway, I will go back to my notes; that would be much better.

In the same way that the Government are coming after farmers, with the family farm tax, they have also gone after pensioners right across the country—and all of that on the back Labour wiping £118 billion off the value of people’s pensions the last time it was in government. So, many of these pensioners have already seen their pensions being devalued.

At the same time, the Government are finding the money to launch the vanity project GB Energy—if we are lucky, we will see lower energy bills by 2030—and pouring money into public pay packets, with no expectation of improving productivity. Pensioners and farmers seem to be the easy targets, and some Labour members seem to believe that that is the case—or perhaps I should say former members, given that they are perhaps less likely to vote Labour.

Labour has come to power against the backdrop of a Conservative record of improving dignity in people’s retirement. We protected the triple lock; uprated the state pension by £3,700; drove up pension credit applications earlier in our time in office; and abolished the pension lifetime tax allowance, which we need some credit for, because it incentivised more experienced workers, including GPs, to stay in work for longer. The Resolution Foundation, which the Minister previously worked for, has confirmed that pensioners are £1,000 better off since 2010, thanks to the decisions made by successive Conservative Governments.

As other Members have said, among the more disappointing policy decisions the Government have made since they came into office is the decision to scrap winter fuel allowance for pensioners who are not in receipt of pension credit—that is the key point. The decision to means-test the winter fuel allowance has seen 10 million pensioners lose access to payments they were previously eligible for. I note the excellent research published by my hon. Friend the Member for Harborough, Oadby and Wigston (Neil O'Brien), which shows that my constituency of South West Devon is likely to be among the hardest hit. Previously just over 22,000 people received winter fuel allowance, but now only about 1,600 would be eligible through pension credit. Some 21,301 pensioners in my constituency would lose out.

Many of us have had representations from constituents, and I want to particularly highlight single pensioners, who are the hardest hit in many cases. We have heard that some earning as little as £11,344—less than £1,000 a month—are no longer eligible for winter fuel payments. There is also an undue hit on the disabled and those whose modest savings lift them out of the bracket. That is completely immoral.

[Wendy Morton]

I am grateful to my right hon. Friend—[Interruption.] I beg my hon. Friend’s pardon; I promoted her there, but I am sure that it is only a matter of time. Does she agree that when a political choice such as this is put in place, it removes the incentive from working people to get on in life, do well, do the right thing and save a little, because they know they will get kicked by a Labour Government?

[Rebecca Smith]

Yes, absolutely, and I think we see that right across the piece of DWP benefits. That is one reason why we think getting people into work, in particular, is so important. The lack of notice, particularly for those with savings, who are doing the right thing, but who are now having to choose whether to do work on their home or heat it, is definitely not a good move.

It was projected that 880,000 pensioners eligible for pension credit, but not yet claiming it, would lose access to the winter fuel allowance when the policy was first announced. By November 2024, the Government had improved pension credit uptake by only 81,000, so the debate will have been put to good use if they commit to take further steps to raise awareness to increase those numbers. Equally, it would be great if we could see the number of applications per constituency, because many of us cannot find that data at the moment, so it would be good if it could be released in due course.

Lastly, I want to highlight the household support fund, which is a very welcome pot of money instituted by the previous Conservative Government. However, it is not enough to tackle the gap between those who receive winter fuel payment and those who do not because, as we have heard time and again this afternoon, it is there for the entire community, not just pensioners. As has also been highlighted, there is a real disparity across the country, and my region receives the smallest amount if the funding is split per pensioner, with just £30.10 in the south-west, compared to £66.73 in London. I want to give a shout-out to the warm, welcoming places in my constituency, such as the Rees centre family and wellbeing hub, the Sir Joshua Reynolds pub, Plymstock library and Hooe Baptist church. They all do a great job to provide those spaces but, ultimately, if that is all we can do in the south-west, it is just not fair that that funding is not split across the board.

Finally, I have a couple more questions. Will the Minister look at why the household support fund is distributed so unequally, whether to pensioners, working families or individuals?  It is particularly difficult for our rural communities, which will be the hardest hit because their heating costs are even higher, so the lack of the £300 or £600 that they would have got will be felt even harder.

Will the Minister commit to delivering a credible plan to ensure that all eligible pensioners can secure pension credit and the services that go with it, which I have mentioned? As we have heard, it is a gateway benefit: if someone can unlock it, they get a whole load of other support.

Finally, will the Minister commit to a long-term focus to make sure that we think clearly about what we do for those who might be just outside the brackets at the moment? In 1997, when the previous Labour Government introduced student fees, they did so with no notice; that was just put on people, with no expectation that it was going to happen. Within two years, students went from no fees to full fees, and if we do not think ahead, this policy risks leaving us in exactly the same situation.

--- Later in debate ---

[Torsten Bell]

I am loath to do this, but the honest answer is no—it is far too small a reduction. Absolutely poverty should be falling every year, very significantly. We should really only need to debate relative poverty measures because, in a growing economy, we should all be taking it for granted that absolute poverty is falling.

I hope that we can agree on two things: first—I think we do agree on this—that we must do better, and secondly, and more positively, that there are lessons to learn from what has worked over the last quarter of a century. While we are on a positive note, I can agree with the hon. Member for West Worcestershire (Dame Harriett Baldwin) about the importance of community groups that support our pensioners, through Ageing Well in Swansea and, I am sure, lots of other devices around the country.

I am not under any illusions—even if I was, I could no longer be after the last hour and a quarter—about hon. Members’ views on the Government’s decision to target winter fuel payments at those on the lowest incomes. I will not rehearse all the arguments for that policy, but our dire fiscal inheritance is no secret. We owe it to the country—to all generations, young and old—to put that right, and that has involved wider tough decisions on tax and spending. I say gently to Members who oppose not just the targeting of winter fuel payments, but every tax rise proposed, that that has consequences. If they oppose every tough choice, they propose leaving our public finances on an unsustainable footing, and leaving our public services in a state that far too often lets down those who rely on them, not least pensioners.

Although we can no longer justify paying winter fuel payments to all pensioners, it is, as all Members have said, important that we do more to make sure pensioners receive the support they are entitled to. In recent months, we have run the biggest ever pension credit take-up campaign, because, although around 1.4 million pensioners currently receive pension credit, too many are missing out. I urge all pensioners to check whether they are entitled to support.

The right hon. Member for Aldridge-Brownhills (Wendy Morton) mentioned the complexity of the pension credit form. I have considered that, and there is more that we can do to simplify it. All I would say is that in our messaging to pensioners, we should be clear that most of the questions do not need to be answered by the people filling in the form. Currently, 90% fill in the form online or over the phone, and the average time taken to fill it in online is 16 minutes.

[Wendy Morton]

I am grateful to the Minister for providing that clarity, but it took me longer than 16 minutes, so perhaps I am not as articulate as others.

[Torsten Bell]

It is the average.

[Wendy Morton]

Does he agree, though, that the 10% who cannot do it themselves in that way are potentially really losing out? There is also a group of pensioners who have worked hard all their lives and done the right things, but are too proud to apply for pension credit, let alone to go online to fill in a form.

[Torsten Bell]

The right hon. Member is absolutely right to raise the case of those who might need support to complete the form. That is why one of the elements of the campaign we have run this year is targeting not pensioners directly, but friends and family, to encourage them to help people to apply for pension credit themselves.