Age Scotland urges governments to support those losing WFP

Age Scotland has written to the UK and Scottish governments urging them to outline plans to tackle the crisis facing the lowest income pensioners affected by the loss of the Winter Fuel Payment.

In a letter to Scottish Secretary, Ian Murray, Age Scotland has highlighted recent figures identifying 200,000 pensioners living in poverty or just above the poverty line who will no longer receive their Winter Fuel Payment, previously worth up to £300 to help with energy costs.

The charity has asked Mr Murray to urgently convey to the Prime Minister and the Chancellor, ahead of next week’s Budget, the message that the move will have a devastating impact on low income pensioners in Scotland, who are already struggling with rising energy prices, as we move into winter.

The letter to the Scottish government welcomes the recent vote at Holyrood condemning the UK government’s decision – but calls on ministers to be clear about how they intend to deliver the devolved Pension Age Winter Heating Payment when they assume responsibility for the benefit next year.

The letter also calls on the Scottish Government to do all it can to support a campaign to increase uptake of Pension Credit, to identify more of the 65,000 pensioners in Scotland who are eligible but do not claim the important benefit.

In the letter to Ian Murray, Katherine Crawford, chief executive of Age Scotland, wrote:

“I am grateful for the frank discussion we had about the challenges older people will face and for your interest in our analysis of the scale and impact this policy decision will have.

“In the time since we met, OFGEM announced a substantial increase to the energy price cap this winter and huge numbers of older people have been in touch about how they will really struggle to manage their energy bills, and stay warm, with less financial means. Our petition with Age UK has also gathered 560,000 signatures in opposition to this cut.

“With the UK Government’s Budget imminent, I am writing to ask that you draw the Prime Minister and Chancellor’s attention to new analysis from our partners at Age UK which shows that 85% of pensioners in Scotland who live in poverty or are just above the poverty line will lose their Winter Fuel Payment.”

In the letter to the First Minister, John Swinney, Katherine Crawford wrote:

“The overwhelming support of parliament for the motion was significant. With it, the Scottish Government has clearly accepted how important it is that the decision is reversed and that action is urgent.

“As you shape the Scottish Budget for 2024/25, we ask that you give the most serious consideration to how the Pension Age Winter Heating Payment can be better resourced next year so that those pensioners who are in desperate need are supported.

“It seems clear that the Scottish Government need to identify a plan and associated funding for this to happen before the end of this year whilst you work budget proposals. Leaving any policy proposals or consultation later will inevitably mean that there is no money available to support older people with this vital issue.”

ENDS

Notes to editors:

Age Scotland's letter to Secretary of State for Scotland, Ian Murray MP, reads:

Dear Ian
 
It was good to meet in the summer to discuss our opposition to the UK Government’s plan to withdraw the Winter Fuel Payment for pensioners bar those receiving Pension Credit. I am grateful for the frank discussion we had about the challenges older people will face and for your interest in our analysis of the scale and impact this policy decision will have.
 
The effect this has also had on its devolution to the Pension Age Winter Heating Payment in Scotland is significant. The swift change in the funding arrangement coupled with the severe financial challenges the Scottish Government are dealing with creates a very complicated future for this important social security payment.
 
In the time since we met, OFGEM announced a substantial increase to the energy price cap this winter and huge numbers of older people have been in touch about how they will really struggle to manage their energy bills, and stay warm, with less financial means. Our petition with Age UK has also gathered 560,000 signatures in opposition to this cut.
 
Pension Credit uptake is happening slowly and no where near the pace needed to compensate those on the very lowest of incomes this winter who aren’t in receipt but would have otherwise had a Winter Fuel Payment. But Pension Credit is a threshold too low to help enough people who really need it. At best, around 18% of Scottish pensioners could be on Pension Credit, but around half have incomes too low to be liable for income tax. The gulf here shows why much more support is needed.
 
A Triple Lock linked rise to the State Pension from the Spring is of course welcome, and necessary, but it does not compensate the majority of pensioners for the loss of their Winter Fuel Payment. Neither should it, as these two elements of the State Pension are entirely separate. As 6 in 10 pensioners in Scotland receive the old, basic State Pension and only half of those on the New State Pension receive the full amount, a £400 annual increase will only be felt by 20% of pensioners. It doesn’t help this winter and as it is spread out over the whole year it is just an £8 per week increase at its maximum.
 
The government must do more to support those on low and very modest incomes.
 
With the UK Government’s Budget imminent, I am writing to ask that you draw the Prime Minister and Chancellor’s attention to new analysis from our partners at Age UK which shows that 85% of pensioners in Scotland who live in poverty or are just above the poverty line will lose their Winter Fuel Payment. I have attached their Equality Impact Assessment of the policy for your information.
 
This is an incredibly stark assessment and shows that even if everyone who was entitled to Pension Credit received it, there would still be upward to 140,000 pensioners in Scotland on the poverty line worse off this year than last.
 
Please use the precious time left before the Budget to make the case for a pause in this proposal, reintroduce the universal payment and spend more time reviewing, if it is needed, Winter Fuel Payment eligibility in the future.
 
Yours sincerely
 
Katherine Crawford

Age Scotland's letter to First Minister John Swinney reads as follows:

Dear First Minister
 
Thank you for the recent Scottish Government debate in the Scottish Parliament about the removal of the universal Winter Fuel Payment for pensioners in Scotland.
 
The overwhelming support of parliament for the motion was significant. It demonstrated the sheer scale of opposition to the UK Government’s decision and outlined the impact this will have on the lives of hundreds of thousands of pensioners who live in Scotland. With it, the Scottish Government has clearly accepted how important it is that the decision is reversed and that action is urgent.
 
You will no doubt be aware of our estimate that 275,000 pensioners living in fuel poverty in Scotland will lose their Winter Fuel Payment this year. They  face up to  higher energy bills without the financial support they have previously relied on. For them, the coming months will be bleak.
 
Our partners at Age UK recently undertook their own Equality Impact Assessment of the UK Government’s policy and found that 85% (200,000) of pensioners living in Scotland who are in poverty, or just above the poverty line will lose the Winter Fuel Payment – Pension Age Winter Heating Payment – this year. That figure is unlikely to change much as Pension Credit uptake is still moving slowly and at best just under a third of them may be entitled to it.
 
We do have sympathy for the position the Scottish Government faced this summer as the expected funding to make the Pension Age Winter Heating Payment universal fell substantially to that of Pension Credit recipients only. Making up this shortfall, in year, while facing your own serious budgetary challenges is not an enviable position to be in.
 
As you shape the Scottish Budget for 2024/25, we ask that you give the most serious consideration to how the Pension Age Winter Heating Payment can be better resourced next year so that those pensioners who are in desperate need are supported.
 
Time is of the essence. It seems clear that the Scottish Government need to identify a plan and associated funding for this to happen before the end of this year whilst you work budget proposals. Leaving any policy proposals or consultation later will  inevitably mean that there is no money available to support older people with this vital issue.  
 
We would be glad to support the thinking around this and help identify what can be done in Scotland for our pensioners.
 
I’d also like to ask that the Scottish Government really get behind a Pension Credit uptake campaign this winter and beyond. Working with partners across the country such as ourselves, local authorities, public agencies and many others, we could have a significant impact on uptake of this vital element of social security. Your government could be leaders in this.
 
As you know, Age Scotland’s helpline and information services support older people to understand and claim the social security available to them. More than £1.5million was identified for callers last year and our projections for this year exceed this figure. We offer to work with you and other relevant agencies to develop a clear action plan to support pension credit uptake as older people continue to tell us that this is a matter of the utmost importance.
 
Finally, it would also be good to know how the Scottish Government intends on using the significant funding made available to you from the UK Government’s Household Support Fund consequentials? If targeted well, it could have a tremendous impact on the lives of the poorest pensioners in Scotland this year.
 
I look forward to your response and hope that we can work together to shape the future of the Pension Age Winter Heating Payment in Scotland.
 
Yours sincerely
 
Katherine Crawford