Agenda item

Motion submitted in accordance with Council Procedure Rule 14 as to Winter Fuel Payment Cuts

To consider the following Motion in the names of Councillors Munro and Marchington;

 

“This Council notes:

1)    The recent announcement by the Labour Government to end universal Winter Fuel Payments and restrict eligibility to only those in receipt of Pension Credits and other benefits;

2)    The Government won a vote in Parliament on the 10th September on the plan to restrict the payments for most pensioners by 348 votes to 228. Liberal Democrat MPs backed a motion in Parliament to block the Government’s cut to Winter Fuel Payments;

 

3)    Though many argue that universal Winter Fuel Payments are not necessary, Council is deeply concerned that many pensioners on lower and middle incomes will not now receive the payments. Across England and Wales, the number of people eligible for Winter Fuel Payments will fall by 10 million (from 11.4 million to only 1.5 million);

 

4)    In Kirklees the number of pensioners affected by the change in eligibility criteria is 63,108. That means that just under 88% of pensioners in Kirklees currently eligible for Winter Fuel Payments will no longer be able to claim the payment from this winter onwards;

 

5)    That the Government did not carry out an impact assessment as part of their decision to cut winter fuel support;

 

6)    By making the Winter Fuel Payment a means-tested benefit tied to claims for Pension Credit, the Government projected savings of £1.4 billion per year. The Government’s savings calculation were based on an assumption of a rise in Pension Credit applications by 95,000, resulting in additional Pension Credit expenditure of £370 million a year. However, new analysis by Policy in Practice, a consultancy who work with local authorities, has thrown the Government’s projected £1.4 billion savings in doubt, as there has been a surge in claims for Pension Credit since the Government’s announcement. This means that any savings could be significantly lower than the Treasury expected, as many of those affected will need to seek other benefits to help them stay warm;

 

7)    From the 1st October this year, the energy price cap for a typical household that uses gas and electricity and pays by Direct Debit will go up from £1,568 to £1,717 per year, an increase of around 10%. The new energy price cap, which combined by the removal of Winter Fuel Payments, will likely push thousands of local pensioners into fuel poverty. 


This Council believes:                                                                                                 

1)    That 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;

2)    While claims for Pension Credit has increased in recent months, the take-up is still too low, with only 63% of those eligible nationwide receiving them – and over 880,000 pensioners not doing so. Council recognises the role we have to play to increase awareness of benefits, such as Pension Credit, to ensure people are aware of the support they are entitled to;

3)    Balancing the nation’s books on the backs of low-income pensioners is the wrong political choice and will likely increase pressure on health and care services and on an already stretched NHS.

This Council, therefore, resolves to:

1)    Instruct the Chief Executive to write to the Chancellor of the Exchequer calling for the policy on linking Winter Fuel Payments to Pension Credit receipt to be immediately paused and introduce a new threshold to determine eligibility for Winter Fuel Payments. Council further requests the Chief Executive write to all MPs covering Kirklees, asking them to give their formal support to halting the changes to the Winter Fuel Payment eligibility;

2)    Request all group leaders at Kirklees Council sign a joint letter to the Chancellor of the Exchequer calling for the new Winter Fuel Payment policy to be suspended and reviewed and for a new threshold determining eligibility for Winter Fuel Payments to be adopted;

3)    Urgently commence a significant awareness campaign to maximise uptake of Pension Credits. This will include use of council noticeboards, social media, promotion in local press and targeted letters to those who may be eligible.