Politics
Pension credit claims soar as chancellor refuses to reverse winter fuel payment cut
Applications for pension credit hit nearly 75,000 in the eight weeks since the new chancellor announced the winter fuel payment for pensioners would be means-tested for the first time.
Figures released on Friday by the Department for Work and Pensions figures showed there were around 74,400 pension credit claims in the eight weeks since 29 July.
This is up from 29,500 claims in the eight weeks before the announcement.
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But in the seven days beginning on 16 September, the government received 11,800 claims – down from 13,400 the week before.
The new Labour government announced in July that only elderly people in receipt of benefits such as pension credit and universal credit would receive help worth up to £300 with their fuel bills over winter, whereas previously it was universal.
Labour has sought to justify its decision by saying it needs to stabilise the economy after the Tories left behind a £22bn financial “black hole”.
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The leader of Unite has urged the government to reverse its decision to cut pensioners’ winter fuel allowance, calling the policy
Ministers launched vast efforts to boost take-up of pension credit among eligible pensioners, with the Work and Pensions Secretary Liz Kendall saying “thousands” were missing out on the payment of an average of £3,900 per year.
The government has come under fire from all quarters for the cut, with Labour members at the party’s conference voting in favour of a motion calling for ministers to reverse their cut to the winter fuel allowance, in an embarrassing blow to the prime minister.
The motion was put forward by the trade union Unite, which has accused the government of embarking on “austerity mark two”.
Sharon Graham, the general secretary of Unite and outspoken critic of Sir Keir, moved the proposal by quoting Labour’s election-winning post-war manifesto, which she said was “one of hope”.
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The government was defeated on a vote at the Labour Party conference – on whether to reverse its decision to end winter fuel payments for pensioners.
She added: “I do not understand how our new Labour government can cut the winter fuel allowance for pensioners and leave the super-rich untouched.
“This is not what people voted for. It is the wrong decision and needs to be reversed.”
But Ms Kendall defended the much-criticised cut to the benefit, claiming “this Labour government has done more to help the poorest pensioners in the last two months than the Tories did in 14 years”.
Rachel Reeves has refused to back down
Chancellor Rachel Reeves has also held firm, insisting at the party conference that the policy would not be changed.
She told a fringe event on Tuesday that parliament had already voted on restricting winter fuel payments, and that “there was overwhelming support” for it.
SNP Westminster Leader Stephen Flynn said the prime minister “must finally listen to voters, admit he got it wrong, and U-turn on the Labour government’s damaging cuts to the Winter Fuel Payment for millions of pensioners”.
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But a Labour spokesperson said: “The Tories wrecked our economy and left a £22bn black hole in the public finances. They made commitments they couldn’t pay for, covered it up and ran away.
“The Labour Party was elected on our manifesto commitment to sound fiscal rules, economic growth is our primary mission and we will take the tough decisions now to rebuild Britain and make every part of the country better off.”
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A government spokesperson said: “We are committed to supporting pensioners, with millions set to see their state pension rise by £1,700 this parliament through our commitment to the triple lock.
“Given the dire state of the public finances we have inherited, it’s right we target support to those who need it most.
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“Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take-up has already seen a 152% increase in claims.
“Many others will also benefit from the £150 warm home discount to help with energy bills over winter while our extension of the household support fund will help with the cost of food, heating and bills.”