Former Welsh Government minister criticises winter fuel payment cuts

Emily Price

A former Welsh Government minister has criticised the UK Government’s controversial plan to axe winter fuel payments for pensioners.

Labour MS for Pontypridd Mick Antoniw said he was “disappointed” in Sir Keir Starmer’s decision to restrict the allowance to those on Pension Credit or other means-tested benefits.

The annual tax-free payment of between £100 and £300 was introduced in 1997 to help eligible pensioners meet the costs of heating their homes in winter.

The number of people who received the payment last winter was 214,000 more than the 11.4 million in 2022-23, and it has steadily risen from 11.1 million in 2020-21, statistics from the Department for Work and Pensions.

About 10 million people will lose the allowance this year.

Price cap

The UK Government has been urged to rethink its plans in light of the energy price cap rising just as the winter months arrive.

Delegates at Labour’s annual conference backed a union motion calling for the cut to be reversed, although the vote is not binding and ministers have made it clear the policy will not be changed.

The Prime Minister says that although he understands the concern over the winter fuel allowance cuts – stabilising the economy is the first step of a long-term plan.

Means testing the winter fuel payment is expected to save the government £1.4 billion this year, which Labour said was necessary to make up the gap between the previous government’s spending plans and the money that was made available to fund them.

Alternatives

In a Facebook post published on Wednesday (October 2), Mr Antoniw, the Welsh Government’s former chief legal advisor, publicly denounced the policy and urged the UK Government to look at other alternatives.

He wrote: “I have been contacted by many constituents who are concerned about the removal of the Universal Winter Fuel Allowance. The UK Government are planning to restrict the Winter Fuel Payment to those on Pension Credit, or other means-tested benefits.

“While I understand that the incoming UK Labour Government has inherited a terrible economic legacy from previous Conservative Governments, I am disappointed with this decision: I would have looked at other alternatives rather than do this. Indeed, a resolution, which I support, was passed at the recent Labour conference calling on the Chancellor, Rachel Reeves, to review this decision.

“My view is that we should not take decisions that impact on the lowest-paid or those with the lowest incomes, which includes many pensioners. We should apply taxes more fairly, so that the greater burden falls on those most able to pay.

“It is easy for me to say this, of course, because I do not have the responsibility for the budget, nor do I have any influence (or vote) on this issue, because it is not a devolved matter, but I do not think this is the right direction. Decisions such as this cannot be made in isolation, given the potential implications for the physical and mental wellbeing of pensioners on low incomes.

“I know that Welsh Government is looking at the implications of this and other economic factors to do all we can to those who will need support during the coming winter months. I will keep you all updated on these developments via this page.

“In the meantime, it is very important that those who are eligible for Pension Credit claim it. In Wales, it is estimated that £117m is left unclaimed each year. I want to use this opportunity to urge pensioners to check their eligibility for both Pension Credit and other sources of support.”

In a Senedd debate last month, a minister defended the cuts to winter fuel payments after the Tories challenged the Welsh Government to back calls for Labour in Westminster to reverse the plans.

Social Justice Secretary Jane Hutt said “difficult decisions” were being taken because of a £22bn black hole in UK public finances following 14 years of Tory rule.