While the decision has been well-received, clarity is still needed on whether it will affect payments this year.
During the prime minister’s questions yesterday (Wednesday 23rd May), Keir Starmer announced plans to ease cuts to winter fuel payments. The U-turn decision comes after Labour tightened eligibility requirements for the payment last year in a bid to save an estimated £1.4bn.
The winter fuel payment is a lump sum of £200 a year for households that include an elderly person under 80-years-old, or £300 for those with an older person aged 80 or above. What’s more, the income threshold to receive the benefit stands at £11,800 a year for individuals and £18,023 for elderly couples.
The latest payment was distributed to households in November and December last year, but 10.3 million people lost out as a result of Labour’s cuts.
While he was speaking at the prime ministers questions, Keir Starmer said: ‘We all know the economy was left an absolute mess by the Tories. We had to stabilise the economy with tough decisions but the right decisions. Because of those decisions it is beginning to improve.
‘I recognise people are still feeling the pressure of the cost-of-living crisis including pensioners, and as the economy improves, we want to make sure people feel those improvements as their lives go forward. That is why we want to ensure as we go forward more pensioners are eligible for winter fuel payments.
‘As you would expect we will only make sure we make decisions we can afford. That is why we will look at that as part of a fiscal event.’
It’s safe to say the decision has been well-received by charities/individuals/organisations who have been working to reverse the decision to tighten thresholds, since the government announced it last year.
‘[The] announcement by prime minister Keir Starmer, signalling a reversal of the government’s decision to cut winter fuel payments, is a welcome development,’ Martin Jones MBE, CEO of Home Instead, said. ‘The initial policy, which restricted eligibility to only those receiving Pension Credit or certain means-tested benefits, had stripped support from nearly 10 million pensioners, leaving many vulnerable to the health risks associated with cold homes.’
Despite the optimistic tone, Martin likewise remarks that we shouldn’t get too ahead of ourselves yet.
‘While the intention to expand eligibility is a step in the right direction, the lack of immediate implementation details is concerning. The prime minister indicated that changes would be considered in the autumn budget, but did not confirm whether the reforms would be in place before next winter,’ he added.
The UK government are responsible for winter fuel payments in England and Wales, whereas Scotland and Northern Ireland have implemented their own solutions. Last winter, the Northern Ireland Executive did scale back payments but offered a £100 top-up for all pensioners that were struggling.
Meanwhile, the Scottish government also means tested payments last year but is planning to introduce a universal £100 payment in 2025 for those who no longer qualify for the main payment.
Commenting on the recent news, Adam Stachura, director of policy at Age Scotland, said: ‘It is good news that the prime minister has finally accepted removing the winter fuel payment in the way he did was the wrong decision. It is regrettable that it has taken him so long and so many who needed it went without this winter.
‘While there is very little detail of how it will be reintroduced in other parts of the UK, it is vital that any new money coming to Scotland as a result is used by the Scottish government to directly increase the pension age winter heating payment. It shouldn’t be used just to cover the current budget line or repurposed elsewhere.’
‘The planned basic rate of £100 next winter just isn’t enough for most Scottish pensioner households as hundreds of thousand live in fuel poverty and struggled to heat their homes without it,’ Adam continued. ‘We urge the First Minister to make a firm commitment to do this and ensure that more older people are better supported through our tough winters and the cost-of-living crisis.’
Photo by Christopher Bill
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