Winter Fuel Payments explained after warning cut could kill 4,000 pensioners (original) (raw)

MPs will today vote on plans to cut winter fuel payments for millions of pensioners.

Chancellor Rachel Reeves announced the controversial plan after finding a £22billion black hole in the public finances left by the Tories. But the move, which will see the financial help for the majority of pensioners bar the poorest, has come under fierce criticism - including by Labour MPs.

Business Secretary Jonathan Reynolds on Tuesday morning insisted the Government has "no choice" but to cut winter fuel allowance to fill the financial black hole left at the Treasury. Asked why it was not in the Labour election manifesto, he told Sky News the party "did not know the situation we would inherit".

Earlier this week it emerged Labour's own research from 2017 found cutting the winter fuel allowance would increase excess deaths by 3,850 that winter. They published their findings in a warning to the then-Tory government - a warning that has now come back to haunt their own Government.

MPs will now get the chance to vote on the plan - with Keir Starmer facing a rebellion on his hands.

Keir Starmer is facing a showdown with Labour rebel MPs (

Image:

PA)

What and when is the vote on Winter Fuel Payments?

MPs will take part in a 90-minute debate on Tuesday to voice their opinions on cutting winter fuel payments. The Prime Minister has faced criticism from unions and some Labour MPs over the policy, which will see all but the country's poorest pensioners stripped of the winter fuel payment.

The move has been met with unease among some Labour backbenchers who have said they feel unable to vote with the Government on Tuesday. Some 17 Labour MPs have now signed a motion put forward by Neil Duncan-Jordan calling on the Government to delay implementing the cut.

The motion has also been backed by six of the seven MPs who lost the party whip in July after voting against the King's Speech over the Government's refusal to abolish the two-child benefit limit.

What does the vote mean?

As many as 50 MPs could take a stand against the move in a Commons vote as union leaders urged the Government to change course. However, with such a massive majority in Parliament after its huge election victory, Labour should be able to see off any unrest. It means the cut is likely to go ahead for pensioners as the Government is unlikely to be defeated, even if there is a rebellion from some Labour MPs.

Potential rebel MPs will also be nervous about being punished after the party removed the whip from those who rebelled over the two-child benefit limit. The PM told the BBC at the weekend that whether or not Labour MPs will be suspended from the party for voting against cuts to winter fuel payments is "a matter for the chief whip".

A Number 10 spokeswoman said there was no dissent among ministers over the planned cut in a Cabinet meeting on Monday. And a spokesman for the Chancellor said that MPs showed "strong support" for the planned cut during a meeting of the parliamentary party on Monday evening.

Even though the cut is likely to go ahead, the row is still likely to be damaging for the Government.

Chancellor Rachel Reeves announced the cut to fill a £22billion black hole (

Image:

Ian Vogler / Daily Mirror)

What are Winter Fuel Payments?

The Winter Fuel Payment was brought in back in 1997, when Labour returned to power. It is designed to ensure pensioners can afford to pay their energy bills when temperatures drop.

Under the current rules, Winter Fuel Payments are available to everyone in England, Wales and Northern Ireland who is over state pension age - regardless of your income. The exact date changes every year, but most recently, this included those born on or before September 24, 1957.

How are Winter Fuel Payments changing?

If you live in England or Wales, you'll only be able to get a Winter Fuel Payment from now on if you're over state pension age and receiving one of the following benefits:

How much you'll receive in Winter Fuel Payments won't be changing - they will still be worth up to £300, depending on your circumstances.

The update means around 10 million fewer pensioners will be able to claim Winter Fuel Payments. At the moment around 11.4 million qualify. But this will be reduced to 1.5 million who meet the criteria. The move will save the Treasury around £1.4billion this financial year.

What have rebels said?

In a scathing attack on the policy, Labour backbencher Rachael Maskell said she fears pensioners will die as a result. She wrote in The Telegraph: “We know that being cold leads to stroke, heart attacks, pneumonia, hyperthermia and so much more as the body wrestles to keep warm, and viruses prey on the frail."

And Ms Maskell continued: “The fear is that, if we withdraw winter fuel payments for those in fuel poverty, it will lead to excess deaths.” Another disgruntled backbencher said the move, coupled with the refusal to scrap the two-child benefit limit, has caused anger. They said: "There's people right across the political divide who are very unhappy. They need to consider a u-turn over the winter fuel payments. I think this is going to ramp up, there's a lot of angry people out there."

Labour backbencher Rachael Maskell said she fears pensioners will die (

Image:

Daily Mirror)

What's Keir Starmer said this week?

Keir Starmer said he recognised that scaling back the winter fuel payment was a "really tough decision" but said Labour must "secure the foundations" of the economy as he faces a potential backbench revolt over the plans.

Mr Starmer told journalists in Downing Street: "Let me first recognise this a really tough decision that we've had to make." But he said that Labour had been "elected into government on the basis of economic stability, that we would secure the foundations".

He added: "If you're asking whether I recognise it's a tough decision I absolutely recognise the tough decision. If you're asking, would I want to make this decision, the answer is no, but I did not want to inherit a £22 billion black hole, and I'm not prepared to walk past that."

What do charities say?

Charity Age UK has launched a petition, which has been signed by more than 500,000 people, calling for a U-turn. Age UK says: "Cutting the Winter Fuel Payment this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision.

"Millions of struggling pensioners won’t receive up to £300 they rely on to pay their bills. We believe as many as 2 million pensioners who find paying their energy bills a real stretch will be seriously hit by this cut."

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Am I or a loved one missing out when I shouldn't be?

It is estimated that 880,000 people who are entitled to pension credit don't claim it. On Sunday the Government launched a week of action saying this "needs to change". Ministers called on everyone who is eligible to sign up. This will ensure they don't miss out on Winter Fuel Payments.

Applications for Pension Credit can be made:

The Government said there had been a 115% increase in people applying in the five weeks since the announced that winter fuel payments would be cut cut. But this still only amounts to a total of 38,500 claims - far below the almost 900,000 who are estimated to be eligible.