Liz Kendall has indicated that there is no “tension” over the Government’s plans to cut Winter Fuel Allowance for all but the poorest pensioners, despite potentially diminishing savings as more people claim Pension Credit.
The Work and Pensions Secretary, while speaking to MPs, expressed her commitment to achieving a full uptake of Pension Credit, which could be worth up to £3,900 for eligible pensioners, regardless of the impact on public finances.
During her appearance before the Commons Work and Pensions Committee, Ms Kendall said: “I would like every pensioner who is entitled to pension credit, up to £3,900, to get it, yes. Regardless, because they are entitled to it. That is what I want to see.”
Despite acknowledging the challenge of setting a specific date for this goal, she affirmed her determination to maximise Pension Credit distribution.
Ms Kendall added: “For me, there is no tension because I think it is a scandal that over 800,000 pensioners, the poorest pensioners, are losing up to £3,900 in Pension Credit that they should be entitled to.”
Addressing MPs, she hinted at potential reforms in the Pension Credit application procedure, asserting: “I also know that over many years we have not been able to solve this because people, it is difficult to increase take up. People don’t want to claim, they feel a stigma or ashamed of claiming. The Pension Credit form is very long.”
She also stressed an ambition for a more straightforward system, adding: “We have got more people doing this online now but we have got to solve that and I think it should not be beyond the wit of man or even womankind to actually solve this problem, which is why ultimately we have got to make this a much more automatic entitlement.
“So for me, there is no tension because I am going to move heaven and earth to do what I can to stop that because it is not right.”
The Government has come under fire for narrowing the criteria to claim Winter Fuel Payment this year, with opposition voices urging for a reversal of the decision.
The Social Security Advisory Committee, an assembly of independent advisors to the Department for Work and Pensions (DWP), has indicated that savings from restricting the benefit to only the most hard-up pensioners might not be as substantial as assumed and could be outweighed by increased claims for Pension Credit.
This comes after the DWP began publishing data for weekly pension credit applications after Rachel Reeves said in July she would limit the Winter Fuel Allowance.
The figures showed a sharp uptick in the number of claims following the Chancellor’s announcement, with numbers remaining over ten thousand each week until publication ceased in mid-September.
