To consider the following Motion in the names of Councillors Hussain, Scott, H Zaman, Moore, A Zaman, Masood Ahmed, Bramwell, Anwar, Safdar, Darwan and Daji;
“This Council notes with deep concern the Labour Government’s decision to cut the Winter Fuel Allowance, resulting in over 10 million pensioners losing up to £300 a year. This loss is equivalent to more than a week’s pension income, and the cuts come just as Ofgem has announced an energy price cap increase of £149 this winter. This represents a devastating double blow for millions of vulnerable pensioners.
We believe that austerity policies such as this are not the answer, and pensioners should not be made to bear the burden of government mismanagement. The wealth exists in our society to provide support where it is most needed. For example, energy companies more than trebled their profits during the pandemic, and the 50 richest families in Britain own a combined £500 billion in wealth – equivalent to half of the UK population’s combined wealth. A wealth tax on the richest 1% would raise billions, yet the government has chosen to target pensioners instead of seeking fairer solutions.
Some argue that wealthy pensioners receive the Winter Fuel Payment unnecessarily, but we strongly support the universal nature of this payment. Like the state pension itself, a universal payment ensures that nobody falls through the cracks. Linking the Winter Fuel Payment to pension credit will leave millions of vulnerable pensioners without the extra support they need. Currently, over 850,000 pensioners who qualify for pension credit do not receive it, missing out on an average of £2,677 a year. These same pensioners will now face losing up to £300 more with these cuts. Additionally, Age UK estimates that a further one million pensioners who live just £50 above the poverty line will also lose out on the Winter Fuel Payment, pushing them closer to financial hardship.
It is important to stress that the proposed cuts to the Winter Fuel Payment are expected to save only £1.4 billion a year. However, if all pensioners entitled to pension credit were encouraged to apply as a result of these changes, the cost of paying this unclaimed credit would rise to £2.2 billion annually – meaning the government might save nothing at all from these cuts.
The Chancellor’s announcement of an extension to the Household Support Fund is a temporary and inadequate measure. It places an additional burden on pensioners, forcing them to rely on charitable grants from their local councils instead of receiving their automatic Winter Fuel Payment. Pensioners, who have worked hard all their lives, should not be forced to go cap-in-hand for basic support.
This Council calls on the Leader of the Council to write to the government and demand that they reverse the proposed cuts to the Winter Fuel Allowance. Our vulnerable pensioners deserve better, and they should not be made to suffer as a result of government decisions that fail to tax the wealthiest individuals and corporations adequately.
We urge the government to reconsider its approach, seek fairer alternatives, and protect the wellbeing of those who rely on this essential support to stay warm this winter.”