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Removing the winter fuel allowance from many pensioners across Preston will mean ‘more hot water bottles for pensioners this winter’ says the leader of the city’s Conservative group.
Councillor Stephen Thomson, who represents Preston Rural North, has hit out at the chancellor’s changes.
He told Blog Preston: “I’m not impressed. As fuel is one of the most expensive elements for pensioners to budget for this seems to be an attack on vulnerable people! In the rural areas oil fueled heating is common and expensive.
“If you have a small private pension you will be over the threshold to qualify for help. More hot water bottles for pensioners this winter I think.”
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Analysis of the winter fuel payments made at the moment by DWP suggests 17,123 pensioners in the Preston City Council area will lose the payment.
At the moment 20,302 receive the payment, worth up to £300 per year, but this will drop to just over 3,000.
The move by the Chancellor Rachel Reeves, announced earlier this week, sees anyone who isn’t receiving pension credit or a number of set benefits removed from receiving the annual payment.
Preston’s Labour group and its deputy leader, councillor Martyn Rawlinson, who is responsible for the city council’s finances in his cabinet role, defended the government’s decision.
He said: “Stopping the WFP won’t cause poverty. Privatised energy company profits cause poverty and Labour are trying to tackle this by creating competition through GB Energy.
Ideally state pensions would reflect the actual cost of living and senior citizens would not need one-off annual subsidies.
“The council have good resources to help people with fuel poverty and the cost of living and that won’t change so I would encourage anyone struggling to get in touch.
“It’s Rachel Reeves job to balance the country’s books and sometimes the council has to reduce spending on things we don’t want to reduce spending on. The focus should always be on reaching a more fair and sustainable economic model, which is exactly what we try to do in Preston.”
Preston’s Liberal Democrat leader, whose party are the opposition party on the city council, attacked Labour’s decision.
Councillor John Potter said: “Many pensioners and charities working in Preston will be very concerned about the Labour Government’s surprise announcement to remove the Winter Fuel Payments to the vast majority of pensioners.
“In Preston, 84.3% of previously eligible pensioners will now not get these payments, that’s 17,123 people. Many of these pensioners will be our family members, friends or neighbours.
“While some Winter Fuel Payments do currently go to wealthier pensioners, many middle and low income pensioners will now miss out.
“The Preston Lib Dems believe the Labour Government has set the threshold at which pensioners do not qualify for Winter Fuel Payments far too low. Only those receiving a pension of less than £218.15 a week (or £332.95 a week for couples) are eligible for pension credits. This is significantly lower than the living wage rate.
“We are also concerned by the low take up of pension credit with only 63% of those eligible nationwide receiving them – and over 880,000 pensioners not doing so.
“The Energy Price Cap is due to rise by 10% in October, which combined by the removal of Winter Fuel Payments, will push thousands of local pensioners into fuel poverty.
“Less than a year ago, Darren Jones MP, the Labour Chief Secretary to the Treasury wrote to the then chancellor concerned that the Conservatives were going to remove the Winter Fuel Payments. Now Labour have done exactly that.
“The Labour Party needs to think again and use a fairer threshold to determine eligibility for Winter Fuel Payments.”
In areas around Preston then in South Ribble 21,133 people will lose the payment, 13,481 in Ribble Valley, 26,407 people in Wyre and 19,540 in Fylde.
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Who will receive the payment?
Starting this winter then to receive the winter fuel payment you will need to be receiving the state pension and also receive either income support, income-based jobseekers allowance, income-related employment and support allowance, pension credit or Universal Credit.
Pensioners are being urged, by the likes of Martin Lewis, to check if they are eligible for pension credit as hundreds of thousands of people don’t claim it.
He’s also called for the government to re-consider scrapping the winter fuel payment for many, urging them to consider linking it to council tax bands A-D so those in lower-value households still receive the payment.
Anger from charity and fuel campaigners
Charities representing pensioners and fuel poverty groups have joined together to oppose the change.
Direct at Age UK, Caroline Abrahams, said; “We strongly oppose the means-testing of Winter Fuel Payment (WFP) because our initial estimate is that as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in trouble as a result – yet at the other end of the spectrum well-off older people will scarcely notice the difference – a social injustice.
“It is well established that pensioners tend to do everything possible to avoid going into debt so if they are worried about their future energy bills we know their likely response will be to ration their fuel use and economise by reducing their spending on other essentials. This proposed policy change is therefore certain to result in more older people experiencing a horrible ‘eating or heating’ dilemma.
“Means-testing WFP this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision, and one that will potentially jeopardise their health as well as their finances – the last thing they or the NHS needs. With winter now just over the horizon, the Government should halt their proposed change to WFP and think again, given the clear evidence of how it will hurt the older people who need it the most.”
How do you feel about the winter fuel payment change? Will it affect you? Let us know in the comments below or email contactus@blogpreston.co.uk
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