Highlands pensioners could be ‘disproportionately hit’ by Labour’s cuts to the Winter Fuel Payment as one local MP says he is ‘horrified’ at the move
Critics say that swinging cuts to the Winter Fuel Payment by Labour could “disproportionately hit pensioners across the Highlands and Islands” – where people surfer the worst levels of fuel poverty in the UK.
On Monday the Chancellor Rachel Reeves made the shock announcement that only those in receipt of Pension Credit would get £200 – or £300 if the household contained someone aged over 80.
Though the payment is devolved in Scotland there will be a massive impact on funding north of the border – this morning the Scottish public finance minister Ivan McKee warned it could cost up to £100 million.
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Age Scotland figures show that one in six pensioners in Scotland are currently living in poverty and 40 per cent of pensioners live in fuel poverty while 24 per cent live in extreme fuel poverty.
Already, Inverness, Skye and West Ross-shire MP Angus MacDonald said he has written to Mr McKee to “highlight the plight of pensioners” across his Highland constituency – it remains unclear whether the Scottish government will follow suit.
In the letter, he states that the UK announcement is already causing alarm and distress for pensioners who rely on the annual payment to ease the cost of higher winter bills.
Mr MacDonald issued a demand to the Scottish Government – “Protect pensioners from the cruel and unnecessary cuts to Winter Fuel Payments announced by the Labour Government”.
He said: “I was horrified to see a Labour Chancellor stand up in the House of Commons, just weeks after an election, and announce that pensioners will pay for the previous government's mistakes,” says Mr MacDonald.
“Yet, the Scottish Government can reassure pensioners across the Highlands who are now worried about how they will pay their fuel bills this winter,” continues Mr MacDonald, “from September onwards, this is a devolved matter, and the payment is in the gift of SNP ministers.”
“Understandably, older people are concerned about how they can afford to heat their homes this winter. The Highlands is particularly impacted by fuel poverty. The Scottish Government must confirm that they will support pensioners and keep the Winter Fuel Allowance.
“That announcement needs to come now. A delay until the Scottish Parliament returns after the summer break is too late. Pensioners need reassurance and certainty now.”
Highlands and Islands MSP Jamie Halcro Johnston warned that the move by the new Labour government “cut to Winter Fuel Payments could disproportionately hit pensioners across the Highlands and Islands”.
He accused the Labour government of being out of touch, noting: “Particularly in those communities where heating bills and cases of fuel poverty are already higher than in the rest of Scotland.
“Like the SNP’s ban on wood burning stoves, Labour ministers are making decisions with little understanding or consideration of how those decisions might impact on communities like ours, or of the potentially devastating unintended consequences of those decisions.
“This short-sighted cut to these vital heating payments could leave some of our more vulnerable residents colder this winter”.
Age Scotland is urging the UK government to reconsider its plans to scrap the payment for pensioners who do not receive pension credit arguing it will push tens of thousands of low income pensioners further into poverty, ill-health and debt.
Katherine Crawford, chief executive of Age Scotland, said: “This move will effectively take money away from some of the lowest income pensioners in Scotland.
“There are currently more than 150,000 pensioners living in poverty in this country, and we know that many more are living on incomes just above the pension credit threshold.
“They will now miss out on a payment which could help them heat their homes and stay warm over winter.
“We know that around 123,000 pensioners in Scotland who are eligible for pension credit are not claiming it – and they are some of the people who are going to be worst affected when the payment is withdrawn.”
In the first major address to the House of Commons, Chancellor Rachel Reeves said she was trying to tackle a £22 billion deficit from the Conservatives – claims hotly disputed from the opposition benches – and that meant cuts.
Speaking in Parliament, the Chancellor said: “The scale of the situation we are dealing with means incredibly tough choices.
“So that is why, I am making the difficult decision that those not in receipt of Pension Credit will no longer receive the Winter Fuel Payment from this year onwards.
“The government will continue to provide Winter Fuel Payments worth £200 to households receiving Pension Credit or £300 for households in receipt of Pension Credit with someone aged over 80.
“Let me be clear: this is not a decision I wanted to make. Nor is it one that I expected to make. But it is a necessary and urgent decision I must make – It is the responsible thing to do to fix the foundations of our economy and bring back economic stability.
“Alongside this change, I will work with my Right Honourable Friend the Work and Pensions Secretary to maximise the take up of Pension Credit by bringing forward the administration of Housing Benefit and Pension Credit, pushed back by the previous government and working with older peoples’ charities and local authorities to raise awareness of Pension Credit, and help identify households not claiming it.”
