Britain’s Winter Fuel Allowance Cut Raises Alarms Over Pensioners’ Lifelines
British citizens protesting against the removal of the winter fuel allowance, Sept. 2024. X/ @socialistworker
September 11, 2024 Hour: 8:01 am
Only 1.5 million people will remain eligible for the fuel allowance.
On Tuesday, a Labour-dominated parliament voted down a motion against the cut, with 348 MPs voting against and 228 in favor.
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Following the revision, only around 1.5 million people will remain eligible for the fuel allowance, down from 11.4 million when it was available to everyone over the age of 66. This change affects nearly 10 million elderly individuals in Britain.
UNPOPULAR CHOICE
Ahead of the vote, British Prime Minister Keir Starmer defended the decision, stating he made “no apologies” for initiating difficult changes and acknowledging that the government has to take unpopular measures, including cutting winter fuel payments.
During the debate, British Work and Pensions Secretary Liz Kendall explained that introducing a means-tested winter fuel allowance was part of broader efforts to stabilize the economy and rebuild Britain. However, the total savings from this cut would amount to just 1.5 billion pounds (US$1.96 billion), far less than the 22-billion-pound (US$28.76 billion) deficit Labour Chancellor Rachel Reeves warned about.
Even with pension credits boosting annual income to 11,300 pounds (US$14,770) for a single person and 17,300 pounds (US$22,612) for a couple, many pensioners are not applying for the credits, worsening the situation.
A poll commissioned by the Liberal Democrats revealed that 55 percent of British pensioners plan to heat their homes less frequently this winter due to the withdrawal of the Winter Fuel Payment. Two-thirds of respondents indicated they would need to take additional cost-cutting measures as a result of the changes.
“This is a vicious and vindictive act against some of the poorest and most vulnerable people in the UK,” said Martin Powell, professor of Health and Social Policy at the University of Birmingham. He argued that there were many alternatives to cutting the fuel allowance for 10 million pensioners. “It would be possible to save a similar amount of money elsewhere in the government budget,” he added.
COLD TRUTH
Opposition MPs cited Labour Party research from 2017, which warned that scrapping the Winter Fuel Allowance could increase excess winter deaths among the elderly by almost 4,000.
“Rachel Reeves’ ‘crocodile tears’ statement about a cold pensioner she met, along with MPs and ministers claiming heating bills on their second homes, should weigh heavily on the conscience of any ‘Labour in Name Only’ MP,” Powell said.
“There will be severe consequences, but it is somewhat ironic that trade unions are criticizing this move, given that the government has effectively admitted it needs to save money for above-inflation increases to union members. Workers can strike, but pensioners can’t,” he added.
Steve Nolan, an economics lecturer at Liverpool John Moores University, said: “The problem for Chancellor Rachel Reeves and the government is that they have tied their hands by pledging not to raise the three main revenue-generating income, national insurance, and value-added taxes.”
“It does seem rushed, a policy designed to fill the supposed ‘black hole’ in this year’s finances. There is a race to get those eligible for pension credit signed up. Overall, it highlights the pitfalls of creating fiscal policy in haste,” said Nolan.
Eleanor, a pensioner from Liverpool in her early 70s, described the removal of the winter fuel allowance as brutal.b”Labour has always portrayed itself as the party of the working class. I can’t believe they would do this to the most vulnerable group in this country. Millions of pensioners put their trust in Labour, and we feel as though we’ve been kicked in the teeth. Like many older people, I dread the winter months,” she said.
teleSUR/ JF Source: Xinhua
