Winter fuel payments based on council tax banding “would not be possible”, the pensions minister has warned, as she revealed the Government has not set a target for pension credit uptake.
Responding to a written question by Labour MP Rachael Maskell, Emma Reynolds said banding based on property values may not accurately reflect taxpayers’ incomes.
The Government has axed the universal winter fuel payment, which all pensioners used to receive regardless of their income, and replaced it with an allowance available to pensioners on means-tested benefits, including pension credit and universal credit.
Ms Reynolds vowed to “work with external partners, local authorities and the devolved governments to boost the take-up of pension credit” but declined to say how many pensioners she would like to see sign up, in response to a further written question from Democratic Unionist Party MP Gregory Campbell.
News. The Chancellor's just announced Winter Fuel Payments will no longer be universal to all pensioners, now only pensioners on benefits will get it – in my view that's too narrow a group. Here's my formal statement to @RachelReevesMP …————–The targeting of Winter…
— Martin Lewis (@MartinSLewis) July 29, 2024
MPs voted 348 to 228 to cut the seasonal payment for all but the country’s poorest pensioners on Tuesday, rejecting a Conservative bid for the controversial policy to be blocked.
Ms Maskell did not take part in the vote.
Asked about her written question, she told the PA news agency: “I think there’s a solution in there that Government needs to explore, that may mean the Government may not need to take (their winter fuel payment plans) back to the House.”
The York Central MP said she was “sceptical” about a suggestion by Martin Lewis, MoneySavingExpert founder, that allowances could be linked with council tax bands A, B, C and D, representing some of the lowest value properties.
Mr Lewis described the proposal on X, formerly Twitter, as “an imperfect but workable proxy for lower household incomes”.
In response to the suggestion, Ms Reynolds told Ms Maskell that “it would not be possible to pay winter fuel payments to pensioners according to their council tax band as my department does not hold data on people’s council tax banding”.
The minister added: “Additionally, council tax band is not always an accurate reflection of someone’s income.
“Matters of taxation are for His Majesty’s Treasury.”
Ms Maskell also asked work and pensions ministers whether they would assess “the potential merits of establishing a fuel poverty prescription that can be given by GPs”.
Some local authorities have previously run prescription schemes, including in Nottinghamshire, where the Warm Homes on Prescription project “aims to help low income residents with cold-sensitive, long-term, health conditions to achieve affordable warmth”.
Ms Reynolds wrote: “This Government takes fuel poverty extremely seriously.
“The Government will invest an extra £6.6 billion over this Parliament in clean heat and energy efficiency through the Warm Homes Plan, upgrading five million homes through solutions like low carbon heating and improved insulation to reduce emissions and cut bills.”
The Labour minister added the Household Support Fund would end on March 31 2025, after the winter, with an additional £500 million “aimed at anyone who’s vulnerable or cannot pay for essentials”.
In response to East Derry MP Mr Campbell’s question on pension credit uptake targets, Ms Reynolds replied: “No targets have been set.
“The Government wants everyone eligible for Pension Credit, but not currently claiming it, to receive the benefits they are entitled to.
“DWP launched the Pension Credit Week of Action on September 2, joining forces with national charities, broadcasters and local authorities to encourage pensioners to check their eligibility and make a claim.
“From September 16, we will be running a national marketing campaign on a range of channels. The campaign will target potential pension-age customers, as well as friends and family who can encourage and support them to apply.
“Our future campaign messaging will also focus on encouraging pensioners to apply for pension credit before December 21 2024, which is the last date for making a successful backdated claim for Pension Credit in order to receive a winter fuel payment.”
