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THERE is no adequate explanation for the urgency to cut the winter fuel allowance for all pensioners bar those on pension credit this year.
It was not part of the Labour Party manifesto. We are told it was a “tough choice” — it was a choice to bypass the scrutiny of the social security advisory committee and also a choice not to deliver an equality impact assessment of the effect on the health and welfare of older people.
It raises the question of the government’s attitude to the principle of universalism and in particular to the older generation. That is why on Monday October 7, the National Pensioners Convention (NPC), trade unions, national and local organisations working with older people are holding a lobby of Parliament at Westminster with other actions in the devolved nations.
The state pension in the UK is the most inadequate in the industrial world with those on the new state pension receiving £11,502 per year and those on the basic state pension on £8,814 per year.
This is less than half the earnings of someone on the National Living Wage. The majority do not receive a full pension and not everyone has an occupational pension to rely on. Research by the Joseph Rowntree Foundation on the Minimum Income Standards shows that a single pensioner needs £17,200 a year and a pensioner couple £27,800.
Claims that the triple lock will offset the loss of the winter fuel allowance is nonsense. The Office for Budget Responsibility reports that over the lifetime of this parliament, pensions will be barely 1 per cent higher than they would be even with the statutory minimum increases.
Given the cost of energy has risen by 10 per cent this month with another 3 per cent expected in January, without the winter fuel allowance the cost of energy for pensioners has increased by 131 per cent.
The pension increase comes in April along with inflation increases for every household bill imaginable. We believe therefore that our pensions will be in deficit in 2025 and beyond, which also impacts on those retiring in the future.
The effect of this legislation is not only to increase fuel poverty among the older generation but other parts of society too. It opens the door to other “choices” for government departments. It means that in the coldest months of the year, the tough choices for pensioners are about heating, eating or paying another bill.
Between now and April 2025, many older people will face tough budgeting decisions beyond simply choosing between heating and eating. Many, particularly those with disabilities and health conditions, may be forced to reduce their care packages, which could have serious consequences for them, their families, and health and social care services.
Cold, damp homes kill — it is a fact. Cold temperatures increase the risk of strokes, heart disease, and other health issues, especially for older and disabled adults. Labour’s own figures estimate an additional 4,000 older people could die as a result of means testing the winter fuel payment. Depending on the type of winter, this may be an under estimation. One death is one too many.
The take-up of pension credit is low for various reasons; 243 questions on the application form, pride, embarrassment, lack of access to help to complete the application, not wanting “charity.” This is part of the history of means testing that sets one individual apart from another for no good reason. The threshold for access to pension credit is too low and must be lifted.
The Chancellor must step away from cutting the winter fuel allowance this year; consult with pensioners, the NPC, organisations that work with older people and those with knowledge of energy systems and fuel poverty.
Bring all homes up to decent standard by fast-tracking insulation and find an alternative approach to fuel poverty by implementing energy for all — a basic level of energy free to all households according to need. Deal with the root cause of pensioner poverty by consulting on what a living pension should be for everyone.
The irony of the 10 per cent increase in energy on October 1 (International Older Person’s Day) was not lost on us and is something the new government needs to reflect on as a principle of treating older people with dignity and respect.
Jan Shortt is general secretary of the National Pensioners Convention.
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