I wish in the same statement there had been be push to ensure pensioners in cold homes had real help with insulation and fuel efficiency
Still its sensible not giving handouts to those of us pensioners well able to meet our bills, while there are so many really in need of support.
On a personal level, though my wife and I will lose the allowance, we can take that in our stride.
The problem is - and they were told by senior Civil Servants - that due to the aging IT pension systems, it isn't possible to means test the Winter fuel payments, any more than it was to limit the additional one-off fuel payments made to all households to only those below a certain threshold. This sets out the position:
‘Rachel Reeves will be forced to U-turn on winter fuel means tests, warns former minister’
Chancellor Rachel Reeves has been warned that
her plans to means test winter fuel payments will not be possible because of ageing computer systems.
Former pensions minister Guy Opperman, who ran benefits for pensioners between 2017 and 2022 and looked at
means testing winter fuel payments, has issued a warning that the system in the Department for Work and Pensions cannot cope with the changes Ms Reeves has proposed.
The chancellor announced she would save almost £3 billion by ending winter fuel payments of £200 for over-70s and £800 for over-80s who are not on pension credit. That means around 10 million out of the 11.5 million pensioners who received the payment will no longer get it and 7 million of the 8.5 million households which received it will no longer be entitled to the payment.
Ms Reeves announcement was met with gasps in the Commons from MPs and shouts of “shame” but she insisted: “If we can't afford it, we can't do it.”
Age UK though has warned that at least 2 million pensioners who need the help no longer be receiving it. And in a thread on X (formerly Twitter), Mr Opperman has explained why he believes Ms Reeves will be forced to u-turn on the plan,
He wrote: “I was the Minister in charge of this policy at DWP from 2017-2022. Labour are making a big mistake.
“Firstly an explanation of our benefit system. It is a big beast made up of 12+ ageing computer systems and 1000s of admin staff. It does not do nuance and fine margins. The state pension and add on benefits - winter fuel payment, Christmas support etc are one off payments.”
He went on: “Over the last few years the Conservative government added an extra £300 extra cost of living winter fuel payment support to all pensioners, meaning they got £500-£600 in winter fuel payments. This is also not being renewed by Labour. So the £500-600 loss to a pensioner on state pensions is huge.”
He said that the debate over whether the £22 billion black hole Ms Reeves identified really exists and
whether she had to pay inflation busting wage increases for public sector workers of between 5 per cent and 6 per cent was a different debate.
“But the government choice is to pay for this using money paid to support vulnerable pensioners during cold winters,” Mr Opperman added.
“I know the DWP civil servants who are advising the ministers.
They know you cannot means test the winter fuel payment, save money and not avoid big gaps in support. The reason is because, whilst we all agree multi millionaires should not need winter fuel payment support, people who have only the state pension do need this support. The error is Labour is targeting both these groups. Their exceptions are way way too narrow. And this relies on pension credit applications filling the gap.”
Opperman was also minister for pension credit and spoke of how difficult it was to get people to apply for it.
“I, the DWP and other ministers worked ceaselessly to drive up applications and take up. We campaigned in a multitude of ways from advertising in post offices, media campaigns, letters to pensioners, letters to local papers and even enlisted Len Goodman. “We succeeded in increasing take up. But still hundreds of thousands of people did not apply. And the application is slow and complicated. It needs hundreds and hundreds of people to man any increase in this system. People, by the way, that the DWP do not presently have. But that is how Gordon Brown designed pension credit.”
He concluded: “So the reality is that between multi-millionaires and state pensioners not on pension credit thousands of pensioners will struggle to heat their homes this winter; I know hundreds of my former constituents in Northumberland will struggle this winter.
“One thing is sure. This policy as presently proposed will not last. I am afraid the ministers should listen to their civil servants on this one.”
https://www.msn.com/en-gb/news/ukne...1&cvid=b385c068d9f24bd38ea81209388061ea&ei=53
The incoming government, notably Rachel Reeves, promised fiscal responsibility and restraint. 'We won't do what we can't afford to do'. The early signs aren't promising. They rightly criticised the outgoing government for it's predilection to use private jets to swan around the world, but here we are, with Starmer, David Lammy et al jetting around the world in private jets, including Starmer's trip to the Euros, in some instances the same type of plane used by Taylor Swift. Exactly what they said they'd put a stop to if elected. Just 'weasel words'.
They said they'd 'negotiate' to settle pay disputes in the NHS and with teachers and other public sector employees. I have no problem with accepting the recommendations of the independent Pay Review Body of 5% (even though it's double the rate of inflation). However, 22% - ten times the rate of inflation, doesn't sound like 'negotiation' - more like capitulation. And of course, these pay rises don't include employer National Insurance contributions and employer pension contributions, which are additional cost burdens.
They're supposed to be 'filling a black hole' which brings to mind the saying: 'If you're in a hole - stop digging'.
"Oh what a tangled web we weave/When first we practice to deceive’ . (Not Shakespeare - Sir Walter Scott. 1808).
If you lie or act dishonestly you are initiating problems and a domino structure of complications which eventually run out of control.
Time will tell.
