Wiltshire MP backs motion to block the scrapping of winter fuel payments

It's thought more than 17,000 pensioners in Sarah Gibson's constituency are at risk of losing the payment

Author: Oliver MorganPublished 30th Aug 2024
Last updated 30th Aug 2024

The MP for Chippenham, Sarah Gibson, is backing a motion in calling for the stopping of winter fuel payments for certain residents to be blocked.

Sarah Gibson MP, who is a Lib Dem, has signed the motion amidst energy bill increases announced by Ofgem earlier this month.

The average household is set to be paying more than £149 a year more in October.

She says that 17,011 pensioners in Chippenham constituency are at risk of losing the £300 payment this winter, and is calling on the Government to “rethink” the cut and not force pensioners to “choose between eating and heating this winter”.

The move was announced by the Government as part of a package of measures designed to tackle a £22 billion "black hole".

This figure of residents is the estimated number of pensioners in the Chippenham constituency who do not receive pension credit, and so will lose the Winter Fuel Allowance under the government’s plans unless they receive other benefits.

Parliament formally returns next week - which is when the Liberal Democrats will table a parliamentary motion (known as a “prayer”) to block the Social Fund Winter Fuel Payment Regulations 2024, published by the Government last week, from becoming law.

This motion, backed by all 72 Liberal Democrat MPs, states: “That a humble Address be presented to His Majesty, praying that The Social Fund Winter Fuel Payment Regulations 2024 be annulled.”

Sarah Gibson MP said: “Over the past few weeks, I have been contacted by hundreds of pensioners across Wiltshire who have made it very clear that losing this vital support will mean they cannot afford their energy bills this winter.

“Stripping support from pensioners who have paid taxes all their lives, at a time when energy bills are set to rise yet again, is simply wrong. Many of the pensioners who are due to lose out on support under Labour’s plans to cut Winter Fuel Allowance are just above the threshold for other means tested support; without help with energy bills, many of those people will be pushed into poverty. I am seriously concerned that the current plans will force vulnerable elderly people into further hardship.

“I do not accept the Government’s suggestion that my constituents should choose between eating and heating this winter. That is why I have signed the motion, and that is why I will be doing everything in my power to make the Government rethink this cut.

“I recognise that the new government faces difficult choices after the appalling mess left by the Conservatives. But a rethink is urgently needed so that poorer and vulnerable pensioners in our community continue to get the support they so desperately need.”

It comes as new analysis by Royal London has found that only around half of people receiving the new state pension last year were getting the full weekly amount - and around 150,000 were on less than £100 per week.

While around 1.4 million pensioners are already receiving pension credit, there are up to an estimated 880,000 households eligible for the support who are yet to claim - and across the UK, around 10 million pensioners are set to lose out on winter fuel payments as the new Government restricts the benefit to only those receiving pension credit.

Sarah Pennells, consumer finance specialist at Royal London, said: "We often talk about the full state pension amount, but these figures show how many pensioners are getting only a fraction of that.

"One of the main reasons why people miss out on the full state pension is because they have gaps in their national insurance record, but they may not realise this until it's too late to do anything about it.

"You may have national insurance gaps because, for example, you were working but had low earnings, were unemployed but didn't claim benefits, were a high earner with young children who didn't register for child benefit, or because you were working abroad.

"The good news is that, even if you have gaps in your national insurance record going back over a decade or more, it may still be possible to top up your national insurance contributions and increase the amount of state pension you're entitled to.

"Under the new state pension system, you don't get any state pension at all if you have fewer than 10 years' national insurance, so it's important to check your national insurance contribution record."

Ms Pennells added: "You may be entitled to free national insurance credits if you're caring for a child under the age of 12 by registering for child benefit, or if you're caring for someone else who's getting certain benefits.

"In that case, you may be able to top up your national insurance record for free.

"But for those who can't, it's important not to miss this deadline of April 5 2025. That's the date by which you must have paid voluntary national insurance contributions to make up for gaps between tax years April 2006 and April 2018. After that, you'll only be able to go back six years and fill in any gaps."

A DWP spokesperson said: "Ensuring a better deal for the pensioners of today and tomorrow is a priority for this Government.

"There are a variety of reasons why some pensioners have a lower state pension - including contracting-out and paying less national insurance contributions - which is why we encourage those on the lowest incomes to claim for pension credit, worth on average £3,900 per year.

"Through our commitment to protect the triple lock over 12 million pensioners will benefit, with many expected to see their state pension increase by around a thousand pounds over the next five years."

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: "The state pension forms the backbone of people's retirement income so it is vital that you make sure you are receiving the right amount.

"Getting a state pension forecast will enable you to see where there are gaps in your national insurance record so you can make a plan on how to fill them."

Hear all the latest news from across the UK on the hour, every hour, on Greatest Hits Radio on DAB, smartspeaker, at greatesthitsradio.co.uk, and on the Rayo app.