Week 10 - Why cut the Winter Fuel Allowance

Last week in Parliament the opposition parties tried to stop the cut to the winter fuel allowance.  There was a vote on a motion to stop the legislation from going through, but we didn't have enough numbers to win since not enough Labour members rebelled or absented themselves.

Some interesting facts came up in the debate.  The cut will save some £1.4Bn, taking the allowance away from 90% of the pensioners in Newton Abbot.  In the first week of this parliament we heard that there is an in year budget deficit of £22Bn.  The government has said that this is down to a list of overspends and unfunded promises.  The cut equates to just over 6% of the deficit.

One thing the government has said is that the allowance stays for those on pension credit.  They are also trying to increase the proportion of take up of pension credit from eligible pensioners.  It was quoted in parliament that should all the pensioners take up this offer, the extra benefits that pension credit unlocks would cost over £3Bn.

The whole thing is wrongheaded.  I do agree that a number of pensioners don't need the allowance, but drawing the threshold at some £13,000 annual pension is far too low.  

And the resultant saving is minimal in the scale of the savings required.

So why has the government decided to do this right now? Why not wait until the budget next month where there will undoubtedly be many more large cutbacks and cancellations of projects?

Other questions have been answered by the government in terms of waiting for the October budget.  Whilst we have been assured that senior bus passes and free prescriptions will be maintained, I do worry about the extent of the cuts or taxes that will be needed if that £22Bn budget gap is to be filled.

I hope that the government will notice the record profits being recorded by banks and oil companies and consider how that may be part of their solution.

Meanwhile we are now in party conference season.  The Liberal Democrat’s conference in Brighton has been celebrating our best ever result with 72 MPs.  It was a very busy event with lots of us getting on with meeting up and making connections to help solve some of the many issues local residents are facing every day.  I was pleased to speak with many of the campaign and charity organisations supporting both rural issues and specifics such as Dementia UK, Waspi, Pancreatic cancer UK and many more.