The Commons: Winter Fuel Payments And Public Trust In the starmer administration
william warby
Trust in politics is at an all time low in the UK. Research done by the UK government in 2023 showed that 57% of people had “Low or no trust” in the government. It gets even worse when you ask people if they think politicians tell the truth. Polling company Ipsos found that in 2023 a mere 9% of people in Britain trust politicians to tell them the truth, the lowest result ever since Ipsos first started polling this question in 1983. Many hoped that the election in July 2024 was a chance to change this. Throughout the election campaign, Labour leader Keir Starmer pledged to restore trust in politics, tackle economic inequality, and bring renewed hope to Britain. However, since gaining power he has commented relentlessly on “tough decisions” and “economic challenges” the country faces – a far cry from the hope and optimism that was portrayed during the election. Many are now worried about cuts to already broken public services and social welfare alongside rising taxes to plug the finance gap, and many vulnerable groups simply cannot afford another hit to their wallets after the continuing cost of living crisis that has gripped the UK these past few years.
With all this in mind, it was quite politically ambitious when one of the first actions of the new Labour government was to cut winter fuel payments for all but the poorest pensioners, effectively turning a universal benefit into a means-tested one. The winter fuel payment is an annual payment introduced in 1997 of between £100 - £300 given to all pensioners to help pay towards heating their homes in Britain’s colder months. Labour’s new plan sees the benefit removed for all pensioners unless they claim another benefit such as pension credit, universal credit or working tax credit. Approximately 1.5 million pensioners will still be eligible to claim the allowance, while around 10 million will no longer receive the payments.
Labour party sources suggest this action could save £1.4 billion this year alone, which would ease some of the pressure on the chancellor, Rachel Reeves, as she constructs the first Labour budget in over 14 years. The Prime Minister, made the argument that this cut is a step towards stabilizing public finances.
“Talking to many pensioners in the last two or three years, the things that have hit the most and hardest are inflation, because it got out of control under the last government, energy bills, because the steps that were needed to be taken years ago weren’t taken, and the cost of living. I’m determined that no pensioner will ever be put through that before. That’s why we’re fixing the foundations now, tough though that may be.” - Keir Starmer speaking to Laura Kuenssburg from the BBC
The government emphasizes that the poorest pensioners will still have access to winter fuel payments. However, an estimated 800,000 pensioners currently do not claim the benefits they’re eligible for, meaning that some of the most vulnerable may miss out on the winter fuel allowance. In response to this, the government is making a concerted effort to raise awareness of pension credit and get pensioners who do not claim the benefit to check their eligibility.
This plan to means-test winter fuel payments has undoubtedly been met with strong resistance and criticism from opposition politicians. The Conservative shadow work and pensions secretary, Mel Stride, told the PA news agency that this decision was a political choice. He said, “many” pensioners are going to “really, really struggle”, adding that: “This government chose to give well above inflationary pay rises to trade union paymasters when it came to wage settlements and chose to take this money away from some of the most vulnerable people in the country. We don’t believe that’s right.” Other parties have also criticized the decision, with the 3rd largest party in the Commons, the Liberal Democrats, stating on their website: “Stopping these payments is just plain wrong - and Liberal Democrats will fight this decision. Vulnerable older people in our community should not be forced to choose between eating and heating this winter.”
The wider public response is perhaps the most crucial element at play. The winter fuel cut comes straight off the back of an election win that was supposed to inspire hope and optimism, and as such, many members of the public feel cheated and wrongfooted by this particular measure. After slogans of “change” during the Labour election campaign, many feel like this is just more of the same, too similar to what they experienced with previous governments, contributing to the British public’s lack of trust in politicians. This sentiment is felt across the political spectrum, with traditionally Labour-supporting trade unions urging the Chancellor, Rachel Reeves, to U-turn on the policy. The union ‘Unite’ even filed a motion at the Labour conference 2024 pushing for "any public expenditure gaps" to be filled by "taxing wealth".
This situation calls into question Labour’s ability, or lack thereof, to control the narrative since gaining power in July. Often after an election, the media headlines focus on new government policy, new spending changes, and new ministerial appointments. Whilst these headlines did occur, the media were left with nothing important to report on during the summer recess. A void of political news is not one Labour should have filled with a spending cut announcement, with no obvious and immediate benefit to announce alongside it. The public reaction, while well-founded and reasoned, was certainly exaggerated due to the lack of other political stories in the media at the time. Perhaps the winter fuel cut announcement could have waited until the budget in October when the public and media response would likely be diluted due to many other economic changes occurring simultaneously.
