Rachel Reeves and Keir Starmer were branded ‘hypocrites’ last night over Labour’s raid on the winter fuel allowance.
The Chancellor was warned that her controversial move, announced this week, would plunge thousands of lower income pensioners into ‘fuel poverty’ by forcing them to choose between ‘heating or eating’.
And she was among a string of Labour frontbenchers under fire after comments they made in Opposition opposing such a move resurfaced.
On Monday, Ms Reeves announced that the Winter Fuel Payment (WFP) – worth up to £300 a year – will begin to be means-tested.
It means 10million pensioners will be stripped of it, with people on incomes as low as £1,000 a month affected from this winter.
On Monday, Ms Reeves announced that the Winter Fuel Payment (WFP) – worth up to £300 a year – will begin to be means-tested
It came as a video emerged of Sir Keir just two months ago, speaking to Good Housekeeping magazine, saying how ‘awful’ and ‘the biggest thing in the world’ it is when people are unable to afford their heating bills
In future, only those who qualify for pension credit or similar benefits will retain the payments, meaning that those with annual incomes of more than £11,344 will lose out.
Ms Reeves claimed the raid was needed to help fill a £22billion ‘black hole’ in the public finances left behind by the last Conservative government.
Experts, however, suggested the move could generate savings of less than two-thirds of the amount the Chancellor believes.
It came as a video emerged of Sir Keir just two months ago, speaking to Good Housekeeping magazine, saying how ‘awful’ and ‘the biggest thing in the world’ it is when people are unable to afford their heating bills.
Meanwhile, Ms Reeves tweeted in May 2017: ‘It’s Labour who will stand up for pensioners, defending the triple lock & winter fuel payments.’
And in November last year, her now deputy in the Treasury, Darren Jones, wrote to the-Chancellor Jeremy Hunt as as he prepared the autumn Budget, demanding a promise that no pensioner would be stripped of their winter fuel payment.
‘The Paymaster General has suggested stripping some older people of the Winter Fuel Payment,’ Mr Jones wrote. ‘Pensioners mustn’t be forced to bear the brunt of Tory economic failure.’
Deputy PM Angela Rayner has also previously tweeted: ‘Labour will protect ‘triple-lock’ on state pensions, maintain the Winter Fuel Allowance & free bus passes for pensioners.’
Dennis Reed, director of campaign group Silver Voices, said: ‘It’s hypocritical. But unfortunately it’s what we currently expect from most politicians and why we don’t trust them anymore.
In a dramatic statement in the Commons yesterday, Chancellor Rachel Reeves said that winter fuel will be means-tested
Rachel Reeves previously spoke at her ‘pride’ over ‘standing up’ for winter fuel payments
‘I certainly thought that pensioner benefits might come under attack, but not as soon as now. If they get away with scrap the WFP then we fear the next thins in line will be free prescriptions in England and the bus pass.’
Ms Reeves defended the move yesterday. Asked on LBC about hers and colleagues’ previous opposition to means-testin the WFP, she said that the new government didn’t expect to be faced with an ‘extraordinary’ £22billion hole.
However, Guy Opperman, a former minister responsible for the WFP from 2017 to 2022, said he looked into means-testing the payment twice but concluded the savings would be much less than the £1.5billion Ms Reeves claims it will save annually.
He said: ‘I well recall a very senior civil servant saying it would not save money given the complications.
‘Simply put, the benefit and computer systems are not good enough to do this [means-testing process], and the staff numbers needed would be massive.’
He added: ‘I was repeatedly pressed by Labour MPs not to cut it. The reason is clear.
Her announcement means 10million pensioners will be stripped of it, with people on incomes as low as £1,000 a month affected from this winter
Chancellor of the Exchequer Rachel Reeves in her office at no 11 Downing Street ahead of her statement to the House of Commons
‘Because if you do cut as is being proposed then old people who are just about managing will really struggle.
‘The proposal by the Chancellor will seriously affect thousands of pensioners. It will cause fuel poverty and possible death.’ Former Work and Pensions Secretary Esther McVey said: ‘This is a betrayal of pensioners by Labour.
‘When we were in government, Labour constantly sought assurances that we would protect the winter fuel payments.
‘And then they get into office – without seeking a mandate for it at the election – and scrap it for a huge number of pensioners who relied on this money.
‘It is utterly scandalous and those affected will never trust a word Labour say to them again.’
Sir Steve Webb, a former pensions minister and partner at pension consultants LCP, conducted analysis showing the move will likely save at least £490million less than Ms Reeves claims.
This is based on one in four of the 800,000 people not currently receiving pension credit, but who are entitled to it, starting to claim for it.
He said evidence showed that after it was announced in 2019 that the free TV licence for over-75s was to become means-tested, claims for pension credit surged by a quarter.
But a bigger proportion could start claiming for pension credit as the WFP change affects more people, he added.
He said: ‘It is highly likely that this week’s announcement will lead to a flurry of new claims for Pension Credit.
‘But a big surge in take-up could slash the savings from this measure.
‘If just 1 in 4 of those currently missing out on their entitlement to pension credit now makes a claim this could cut the Chancellor’s savings by around one third.’
