Labour accused of ‘window dressing’ with latest pension ploy: ‘Really doesn’t wash’

Labour accused of ‘window dressing’ with latest pension ploy: ‘Really doesn’t wash’

Pensions expert Tom McPhail accuses Labour of 'window dressing'

GB NEWS
Ben Chapman

By Ben Chapman


Published: 09/09/2024

- 16:03

Labour says there has been an uptake in pension credit

Pensions expert Tom McPhail has accused Labour of "window dressing" over their approach to pension credit following the decision to cut winter fuel payments.

Speaking to GB News, McPhail said: "We've seen a modest uptake in pension credit. It hasn't shifted the dial - I think the government are using this as window dressing to say, 'we've done our best to encourage those eligible to take up the pension credit, it's not our fault if they're not claiming it'."


He criticised the government's strategy, stating: "That really doesn't wash - the definition of madness is doing the same thing over and over. The Government needs to look at this."

McPhail also highlighted the significant impact on pensioners, noting: "Pensioners are going to lose £300 which will really matter a lot. These are people worrying about fuel bills going up already."

Keir Starmer, Rachel Reeves and Tom McPhail

Tom McPhail hit out at Keir Starmer and Rachel Reeves on GB News

PA / GB NEWS

Labour's decision to cut winter fuel payments has led to a significant increase in pension credit applications. According to the Express, the number of pensioners seeking financial help from the Department for Work and Pensions has "exploded" following the announcement.

In the five weeks after Chancellor Rachel Reeves' decision to scrap the universal Winter Fuel Payment, new applications for pension credit more than doubled, with 38,500 new claims submitted.

This marks a 115 per cent rise in potential claimants, many of whom receive weekly pension payments below £218.15 for singles or £332.95 for couples.

The surge in applications comes as Labour attempts to address a £22 billion "hole in the public finances" inherited from the previous government.

Keir Starmer and Tom McPhail

Tom McPhail joined Martin Daubney on GB News

GB NEWS

A government spokesperson acknowledged the fiscal pressures, stating: "Given the dire state of the public finances we have inherited, it's right that we target support to those who need it most."

The decision to cut winter fuel payments has raised serious concerns about potential consequences for pensioners. Labour's own research from 2017 suggested that means-testing the benefit could lead to thousands of deaths among the elderly.

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The analysis warned that cutting the fuel allowance for ten million pensioners could increase excess deaths by 3,850 in a single winter.

Labour MP Rachael Maskell expressed worry about the impact on the NHS, stating: "My concern is that an NHS under extreme pressure will experience even more pressure if people who are fuel-poor are ending up there because they can't heat their homes."

Pensioner sits by electric heaterPension Credit is a benefit reserved for lower income pensioners GETTY

Unite general secretary Sharon Graham called on Sir Keir Starmer to "do a U-turn" on the plans, describing the cuts as "completely wrong" and accusing the government of "picking the pocket of pensioners".

The decision is expected to affect around 10 million pensioners and seven million pensioner households.

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