Labor faces new demands to reverse winter fuel cuts after ‘damning’ new report | Politics | News

Labor has faced new demands to reverse cuts to winter fuel payments after criticism from a committee scrutinizing the government’s welfare policies.

In a letter to Work and Pensions Secretary Liz Kendall, the Social Security Advisory Committee (SSAC) on Thursday condemned the decision not to carry out a full impact assessment of the plan to limit the allowance to only OAPs on pension credit.

The committee expressed concern that new pension credit applications would be processed on time this winter.

It also questioned whether the controversial measure would deliver the savings the government has targeted.

Shadow Work and Pensions Secretary Mel Stride said: “The Government’s own advisory body has stated that the winter fuel payment legislation is not fit for purpose.

‘It confirms that leaving almost ten million pensioners out in the cold to pay for union pay rises will have a huge impact on pensioners already living in poverty.

“Many will be faced with the terrible choice between heating and eating brought about by this Labor government.

“Labor has 13 days to reverse this policy before the budget. Now it is time for them to follow their own advice and unravel this cruel policy.”

The SSAC called for two urgent changes to the regulations, including giving winter fuel payments to those receiving the full rate of pensioners’ housing benefit this year.

The second is protection for older people who receive a child tax credit and who are at risk of being financially disadvantaged if they switch to a pension tax credit.

Mr Stride said the committee had delivered “a damning verdict” on the policy.

The senior Tory added: “They have condemned the decision not to carry out a full impact assessment and called for one to be carried out as a matter of urgency.

“The committee says this should particularly look at the impact on those already living in poverty.

‘They are also raising concerns that the additional staff brought in to process pension credit applications will require months of training, meaning pensioners may not be paid in time for the winter.

“All this confirms what the Conservatives and many concerned pensioners have been saying all along: these plans are ill-conceived, rushed and completely unjustified.

Chancellor Rachel Reeves sparked a backlash in July when she announced plans to scrap previously universal winter fuel payments for millions of OAPs.

The government has blamed the move on a £22 billion black hole in public finances left by the Tories, which the Conservatives have denied.

The change is expected to reduce the number of pensioners receiving benefits of up to £300 by 10 million, from 11.4 million to 1.5 million, and save £1.4 billion this year.

A government spokesperson said: “We are committed to supporting pensioners – with millions set to see their state pension increase by up to £1,700 this parliament through our commitment to the triple lock.

“More than a million pensioners will still receive the winter fuel payment, and our drive to boost the take-up of pension credits has already led to a 152% increase in claims. Many others will also benefit from the £150 Warm Home discount to help pay winter energy bills, while our extension to the Household Assistance Fund will help with food, heating and bills costs.

“In the longer term, we will bring together the implementation of pension credit and housing allowance as quickly as operationally possible, so that retired households that receive housing allowance also receive the pension credit to which they are entitled.”