Ministers challenged by own backbench over winter deaths with fuel payment cuts

Labour ministers have been tackled by their own side over how many more elderly people will die of cold as a result of stripping 10 million pensioners of their winter fuel payments.

In response to the red-on-red criticism in Parliament, the Government frontbench said it understood the “disappointment”, but insisted it was the right, if tough choice, given the state of the public finances inherited from the Tories.

The new administration was also accused of “picking” on pensioners with the move, which it was claimed would wipe out the benefits of the triple lock, which guarantees state payouts rise each year in line with inflation, earnings or by 2.5% – whichever is higher.

The controversy comes after Chancellor Rachel Reeves said she was making “difficult decisions” as she accused the previous government of leaving £22 billion of unfunded commitments that it had “covered up from the country”.

Above-inflation pay rises

At the same time she announced above-inflation pay rises for millions of public sector workers, which Conservative critics claim accounted for around half of the spending “black hole”.

Introducing a means test for the winter fuel payment, where only those on benefit qualify, is expected to reduce the number of pensioners in receipt of the payment by 10 million, from 11.4 million to 1.5 million, saving some £1.4 billion this financial year.

The payment is a devolved matter in Scotland and Northern Ireland.

Challenging the Government, Labour peer Lord Sikka argued the move was “taking away” £300 from pensioners by “a measure that was not in our manifesto”.

He told the upper chamber: “I have received already many messages where pensioners are very, very concerned about this.

“The Government could have introduced a taper to lessen the pain to help many pensioners.

“Would the minister give a commitment that he would have another look at that?”

He also pointed out a document produced by the Treasury “has lots of financial numbers but there is no mention of any human whatsoever”.

Lord Sikka said: “Last year, 5,000 pensioners died because of cold and were unable to afford heating.

“Has the minister made any estimates of how many more will die because £300 will be taken away from them?”

Disappointment 

Responding, Treasury minister Lord Livermore said: “This is not an easy decision and I understand why there is disappointment this but it is the right decision in the circumstances.

“The level of overspend that we inherited is simply not sustainable.

“Left unaddressed it would have meant a 25% increase in the Government’s financing needs this year. So it does fall on this Government to take the difficult decisions to make the necessary in-year savings.”

Tory former pensions minister Baroness Altmann said: “I truly confess that I was shocked to see pensioners being picked on and bearing the brunt of cost savings yet again.

“This Government promised to protect the triple lock. What was announced at a stroke with virtually no notice was worse than taking away the triple lock.”

She added: “I urge the Government to think again about the enormity of the decision that was made.”

Lady Altmann called for a delay until the impact could be assessed “on some of the very poorest pensioners”.

But Lord Livermore said: “I do think her analysis is not correct in terms of the triple lock versus the winter fuel payment.”

He added: “This of course is not an easy decision and I can understand why there is disappointment about this, but it is the right decision in the circumstances.”

The minister said there would be an effort to maximise the take-up of pension credit by working with charities and local authorities to raise awareness.

Unforgiveable 

Earlier, Lord Livermore told peers: “The inheritance from the previous Government is unforgivable.

“After the chaos of partygate when they knew trust in politics was at an all-time low, they gave false hope to Britain.

“When people were already being hurt by the cost-of-living crisis they promised solutions they knew could never be paid for and then in the election, and perhaps this is the most shocking part, they campaigned to do it all over again.”

He added: “We will take the tough decisions to restore economic stability and to fix the foundations of our economy.”

Tory frontbencher Baroness Penn argued the Chancellor’s statement was a “political ploy by the Government to lay the ground for tax rises that Labour were not honest about during the election”.

But Labour former Treasury minister Lord Boateng urged his frontbench colleague to “reject the carping criticism of crocodile tears that have come from members opposite”.