The detrimental impact of the Government's decision not to retain the higher rate of Winter Fuel Payments has been further reinforced by one of its own Ministers.
The Liberal Democrat Minister for the Department of Work and Pensions, Steve Webb MP, confirmed in a written response to a parliamentary question from Pavilion MP Caroline Lucas that the combined impact for groups of pensioners under and over 80 years old will be to push 25,000 more households into fuel poverty in England.
This comes at a time when there are already 5.1 million households struggling to heat their homes.
Caroline, who is Co- Chair of the All Party Group for Fuel Poverty and Energy Efficiency, commented:
"Sadly, the decision not to retain the higher rate of Winter Fuel Payment, especially for Pension Credit Recipients, is a further example of how the Government appears to be out-of-step with the needs of the most vulnerable in our society.
"The response that Winter Fuel Payments will be paid exactly as budgeted for by the previous Government is inadequate. It is now clear that some of the lowest-income pensioner households will suffer and are in danger of being duped.
"In households where there is someone who has reached women's state pension age and is under 80, the Winter Fuel Payment is £50 less in 2011-12 compared to 2010-11. For households where there is someone aged 80 or over, it will be £100 less in 2011-12 compared to 2010-11.
"For this group it is estimated that £100 represents around 15% of the average winter fuel bill. This impact will be felt at a time when energy prices are at an unprecedented level and, because of global events, all projections indicate an ongoing upwards trend."
Caroline continued: "At the same time, the Government is heralding the new Warm Home Discount which will offer rebates to low-income pensioner households; this will involve a reduction of £120 on electricity bills for the most financially disadvantaged pensioner households in 2011-2012.
"However, given the aforementioned changes to the Winter Fuel Payment, the real value of these rebates to low-income pensioner households could be pitiful, just £20."
She concluded: "The risk is obvious - smoke and mirror policy decisions will leave many cold at a time when the need couldn't be greater".
ENDS
Notes
- The All-Party Parliamentary Group for Fuel Poverty and Energy Efficiency is a cross party working group for bank benchers in the House to debate policy and legislation working towards the eradication of fuel poverty.
- Fuel Poverty is defined as the need to spend over 10% of household income on fuel costs to maintain adequate warmth for health and comfort.
- There are currently 5.1 million households across the UK living in fuel poverty.
- Cold and damp homes affect people's health and wellbeing and are linked to serious cardiovascular and respiratory illnesses. The elderly, young children and people with people with disabilities are particularly at risk. There were over 40,000 excess winter deaths (EWD) linked to cold homes in 2008-09 in the UK. This number dropped to 26,000 through 2009-10 but ONS figures indicate that the number of EWD from the winter of 2010-11 may well be higher.
- For more information on the Winter Fuel Payment follow the link below.
- To see the Parliamentary Question on Hansard follow the link below.
http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm110404/text/110404w0002.htm
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