Former DWP boss makes Winter Fuel Payment policy plea

Mel Stride has urged the Government to 'follow their own advice'

The shadow work and pensions secretary has called on the government to retract its decision to means-test Winter Fuel Payments and to "follow their own advice, and unpick this cruel policy". Mel Stride MP, previously head of the Department for Work and Pensions (DWP), urged Labour to scrap the planned cuts that would affect over 10 million elderly individuals ahead of the Autumn Budget scheduled for October 30.

His plea follows criticism from the Social Security Advisory Committee (SSAC), which is tasked with giving statutory advice on benefits to ministers; also admonished the UK Government for not having provided an impact assessment of its plans before they were brought into law. The group of experts warned that the savings from limiting the Winter Fuel Payment to only the poorest pensioners are unclear and could be outdone by a rise in those seeking Pension Credit.

Mr. Stride said: "The Government's own advisory body has stated that Winter Fuel Payment legislation is not fit for purpose. It confirms that leaving almost 10m pensioners out in the cold to pay for union pay rises will have a huge impact on pensioners already in poverty. Many will face the dreadful choice between heating and eating caused by this Labour Government."

Furthermore, he warned: "Labour have 13 days to reverse this policy before the Budget. Now is the time for them to follow their own advice, and unpick this cruel policy."

Chancellor Rachel Reeves revealed in July that the annual assistance for heating bills would be restricted to only the least affluent pensioners. This move is part of an effort to address what she referred to as a £22 billion "black hole" in public finances, reports the Daily Record.

Consequently, the number of State Pensioners receiving the Winter Fuel Payment is expected to decrease from approximately 10.8 million to 1.5 million this year, potentially saving the Government £1.5 billion. Only those receiving Pension Credit and other means-tested benefits such as Universal Credit or Tax Credits will continue to qualify for the payment, which ranges between £200 and £300.

However, Downing Street stated that eliminating the universal benefit was "not a decision that we wanted to take", citing the need to rectify struggling public finances as the reason behind the move. Since Ms Reeves' announcement on 29th July, the DWP has reported a 152% increase in the number of Pension Credit claims.

This is largely due to its new nationwide awareness campaign, encouraging hundreds of thousands of older people to check their eligibility for the annual income boost, worth around £3,900. In a letter to Secretary of State for Work and Pensions, Liz Kendall earlier this week, the SSAC said "it is not clear how the tension between the two goals of fiscal savings and increased take-up of Pension Credit is resolved within the plans".

The committee expressed its disappointment that the UK Government had not conducted an impact assessment of the plans and was sceptical about Sir Keir Starmer's assurances that Pension Credit uptake would prevent many pensioners from slipping into poverty. It stated: "Given the scale of pensioners who will be affected by this change, and the speed at which it is being introduced, we are not similarly reassured that this will be the case and are of the firm view that a more detailed assessment is urgently required, in particular, on the potential poverty impact."

The SSAC also called for additional protections for pensioners receiving other benefits, such as Child Tax Credits and disability benefits.

On the topic of those on disability benefits, the Committee remarked: "We consider it essential that the Department urgently reviews its current Pension Credit take-up campaign to ensure those receiving Attendance Allowance, Disability Living Allowance and Personal Independence Payment are sufficiently engaged and aware of the options available to them."

The Social Security Advisory Committee has raised concerns about pensioners who receive Child Tax Credits and their transition to Pension Credit. They stated: "If it is not possible to expedite the migration of the 5,000 pensioners in receipt of Child Tax Credits across to Pension Credit, we recommend that you consider ameliorating this concern by introducing an urgent amendment to these regulations providing protection for any pensioners who inadvertently find themselves disadvantaged by responding to the current take-up campaign."

In response, a Downing Street spokeswoman told the Press Association: "When it comes to winter fuel our position remains that we remain focused on ensuring that those eligible for that support are receiving it."

She added, "There continues to be effort under way in the Department (for Work and Pensions) to ensure that people are applying for that and receiving back-dated payments where eligible."

The full letter from the SSAC to the DWP can be accessed online at GOV.UK.