Sep 3, 2024, 2:17 PM
Sep 3, 2024, 2:17 PM

Rachel Reeves discusses cuts to winter fuel payments for pensioners

Provocative
Highlights
  • The Chancellor stated that the basic state pension has increased by £900 compared to last year, and energy bills are lower.
  • Concerns were raised by MPs about the impact of cuts to winter fuel payments on vulnerable pensioners, particularly regarding rising living costs.
  • The government's decision to limit payments is expected to save £1.4 billion but has faced significant backlash from various political figures.
Story

Rachel Reeves, the Chancellor, defended the decision to limit winter fuel payments to pensioners on pension credit during a session in the House of Commons. She highlighted that the basic state pension has increased by £900 compared to the previous year, and energy bills are lower than last year, suggesting that many pensioners can manage without the universal winter fuel payments. This decision has sparked concern among MPs, particularly Tory MP Wendy Morton, who expressed worries about pensioners in her constituency relying on these payments. Labour MP Rachael Maskell raised concerns about rising rents and the overall cost of living, which she argued outpaced the pension increase, leaving many pensioners vulnerable this winter. Reeves emphasized the importance of ensuring that the 800,000 pensioners who missed out on pension credit under the previous government receive the necessary support, as they are among the poorest and most in need. She reassured that the basic state pension will continue to rise due to the triple lock policy, which guarantees increases based on inflation, average wage growth, or a minimum of 2.5 percent. The government is also collaborating with local authorities to improve pension credit uptake. The new policy is expected to significantly reduce the number of pensioners receiving winter fuel payments, from 11.4 million to 1.5 million, resulting in a savings of approximately £1.4 billion this year. This has led to a backlash against the government, as many fear the implications for older individuals during the winter months, particularly with rising living costs. Overall, the situation reflects a broader debate about the adequacy of support for pensioners in the face of increasing living expenses and the government's approach to welfare spending.

Opinions

You've reached the end