Winter Fuel Payment cutbacks will plunge ‘thousands of pensioners deeper into poverty,’ Derry reps warn

Northern Ireland Communities Minister Gordon Lyons confirmed on Tuesday that the Labour government cutbacks in England and Wales, which the government in London said was designed to save over £1bn in public finances, will also be applied in the north.

Mr Lyons said breaking parity with the controversial move being introduced in England and Wales would result in Stormont having to find over £50m, which would in turn mean funding being cut from elsewhere.

Addressing the Assembly, Minister Lyons pointed the finger at Rachel Reeves saying the restriction on these payments “is directly and wholly the result of the decision taken by the Chancellor of the Exchequer”.

"This was a totally unexpected announcement from the new Government in Westminster. It was not mooted by the government before now, it was not part of their manifesto and indeed, only a few months ago when the Prime Minister was leader of the opposition, he said that the Winter Fuel Payment should be maintained,” Minister Lyons said.

“As members will be aware, the principle of parity, as reflected in Section 87 of the Northern Ireland Act 1998, generally means that social security benefits are paid at the same rates and with the same conditions of entitlement across the UK. Where parity is maintained then expenditure on pensions and social security benefits in Northern Ireland is funded, in full, by the UK Government. Any deviation from this principle of parity, that results in additional expenditure in Northern Ireland, must normally be paid from the Block Grant.

“The estimated additional cost to the Block Grant of maintaining universal entitlement to a Winter Fuel Payment in Northern Ireland for Winter 2024/25 is £44.3 million and this does not even include any additional delivery or staffing costs. In addition, it is estimated that an appropriate IT system to deliver universal Winter Fuel Payments in Northern Ireland could cost between £5 million to £8 million for development and a further 20% of the development spend per annum for support and maintenance.

“Therefore, for the Executive to even consider breaking parity on this decision by the Labour Government would require significant cuts to Northern Ireland’s already struggling public services. To those who glibly say the Executive could have made a different decision, I would ask them what they would cut or what services would they postpone? It was simply not credible to claim that the Government have left the Executive with any other choice.”

Mr Lyons said he strongly disagreed with and was totally opposed to the decision by Labour. “I believe this decision is wrong. It is wrong because it will have serious consequences for the comfort, wellbeing, and health of older people across Northern Ireland,” he said.

SDLP Foyle MLA Mark H Durkan however said it was the Executive's choice to limit fuel support for pensioner households.

Mr Durkan claimed that if the Executive put ‘as much effort into finding a solution as they have into avoiding responsibility, people would be in a much better position’.

Speaking following the Communities Minister’s Statement on the Winter Fuel Payment in the Assembly, Mr Durkan said: “We in the Opposition recognise the constraints of parity, but parity should not mean parrotry. The Minister, and his Executive colleagues have failed to offer an alternative to the winter fuel payment and their incredible lack of foresight in terms of addressing growing rates of fuel poverty has been astonishing.”

Mr Durkan said Mr Lyons had the power ‘not to introduce this punitive measure in the North but didn’t take it’.

"Now it will plunge thousands of pensioners deeper into poverty,” he said. “Individuals who receive the full state pension worth £220.20 per week won’t qualify for Pension Credit and under these changes won’t be entitled to a winter fuel payment. It’s ludicrous that a household entitled to a yearly income of £11,450.50 isn’t deemed worthy of support. Many pensioners are already struggling to make ends meet, forced to choose between heating and other necessities and that’s with the winter fuel payment.”

People Before Profit Derry City & Strabane District Councillor Shaun Harkin meanwhile said the decision by the Stormont Executive “will hurt many thousands of struggling pensioners in Derry and across the North”.

“It's well documented we have higher levels of fuel poverty so the impact here will be disproportionate. By making access to the Winter Fuel Payment dependent on receipt of Pension Credit or means tested benefits the Executive has ensured many in need of this support will lose out.”

He said the ‘callous attack on the elderly’ followed on from the Executive's ‘failure to lift a finger to remove the cruel two-child Universal Credit limit’ and its ‘shameful refusal to restore holiday hunger grants’.

“The Tories are gone but austerity as a political choice from Westminster and Stormont continues. There's money for war and corporate handouts but nothing to address deprivation,” Colr. Harkin said.

Mr Lyons said it was “extremely important that people ensure that they are receiving all of the benefits they are entitled to”.

"I would therefore encourage everyone to check their entitlement to Pension Credit at their earliest opportunity. This can be done by telephoning the Northern Ireland Pension Centre’s Pension Credit Application Line.

The Department’s unique Make the Call Wraparound Service puts people in touch with any benefits, supports and services to which they may be entitled, and I would also encourage people to get in touch with them.

The State Pension Claim Line number is 0808 100 2658; the Make the call number is Freephone: 0800 232 1271 (network charges may apply) or e-mail: [email protected]