How Starmer and Reeves pension savings are deliberately driving the elderly to an early grave

1950s born women to face a quadruple whammy to their hopes over compensation, heating allowances, fuel bills and new taxes

Sir Keir Starmer in the Cabinet Room Pic credit: Gov Uk

In just 50 days of a new Labour government pensioners rather than the better off have been singled out to pay the price to balance the books of running the country.

They are the people who are often not in the best of health, have worked most of their life and most don’t go around rioting and throwing fireworks or bricks at the police.

So for Sir Keir Starmer and Rachel Reeves they are a soft target to save money, particularly if your object is to grow the economy.

Rachel Reeves, Chancellor of the Exchequer poses for a photograph following her appointment to Cabinet by Prime Minister Sir Keir Starmer in 10 Downing Street. Picture by Lauren Hurley / No 10 Downing Street

To them the elderly are a burden. That is because they would find it difficult to have enough energy to start new businesses, expensive to look after since they are more likely to use the NHS, and the cost of pensions is the real big ticket item for the Department for Work and Pensions costing £125 billion a year – far outstripping any payments to other people. The total DWP annual pay out to people is £258.4 billion – so pensions are almost half the bill. Rachel Reeves will know all about this as her partner, Neil Joicey was finance director at the DWP.

If ministers are prepared to ignore that pensioners feel they have contributed to their pension and it is theirs by right, it would be rather convenient for the Treasury if they died sooner than later. Life expectancy is already stagnant and the new Starmer and Reeves measures could see it fall. Also pensioners were the last group who chose to vote Conservative rather than Labour at the general election, so it would be politically convenient with a five year government guaranteed by its large majority if many had died by 2029. The dead can’t vote.

Darren Jones Pic credit: ITN News

The justification for means testing the fuel allowance – worth up to £300 per pensioner household – put by Darren Jones, the new Chief secretary to Treasury, was that it was a blanket benefit costing £1.4 billion claimed by the rich and poor. True a 90 year wealthy woman living in Kensington might not miss it, but an average 66 year old man living in Blackpool and about to die a year after getting his pension, will.

But his argument could also be used to abolish the universal state pension- and for all I know is being discussed in the Treasury – since it goes to billionaires -as well as the poorest.

The cut off point to lose the fuel allowance is £218.25 a week for single pensioners and under £332.95 for couples. Some 880,000 earning less than this could apply for pension credit but the forms are daunting for this. I checked to qualify you have to answer up to 243 questions. Read it here.

Some of the questions are bizarre. Why would you have to tell the DWP for example, if you share your home, with another person, whether he or she has ever been in prison or held in custody at a police station? Why do you have to tell them whether they have ever had four weeks holiday outside the UK? If you have over £10,000 in savings you have to fill in an additional 31 questions on another form. You have to disclose all the money send original bank and building society savings books and reveal how much cash you hide at home. You are expected to fill in the form yourself, if you can’t expect a visit from a DWP civil servant demanding why you can’t. No wonder a lot of people are put off and Ed Miliband’s cheery suggestion you apply, appears to mean he hasn’t a clue how detailed the forms are.

The other outrageous thing is that any government proposing a change should do an impact assessment on what this will mean. This was ignored by Rachel Reeves- so keen was she to announce the cuts.

On top of this we now know, after the announcement from the regulator, Ofgem, that energy prices are going up 10 per cent from October adding an average £149 to people’s bills just as the £300 fuel allowance is being abolished. At the same time Labour pointedly did not agree to raising pensioners tax allowances so with the triple lock in place, to avoid the poorest pensioners with little or no extra pension in place starting to pay tax again.

Michael Shanks MP and junior energy minister

As for the 1950s born women the chance of any compensation – even the paltry sums of between £1000 and £2900 recommended by the Parliamentary Ombudsman — is getting dimmer by the day. A rather frank answer to a constituent from Michael Shanks, the new Labour MP for Rutherglen and junior energy minister, has revealed the Treasury has taken over deciding whether they get a penny.

He wrote:” My understanding is it is being looked at seriously by Treasury and DWP Ministers now they are in post and fresh discussions are taking place about what happens next.

He went on: “You may be disappointed we didn’t simply commit to compensation for all, but as we have discussed before, I think it is more complex than that and I’m not convinced a one size fits all approach is right, or a good use of public money. The PHSO has recommended £1-3,000 per person, costing up to £10bn. However, this would give compensation to women who did know about the change – around 43% of WASPI women according to the PHSO. We need to ensure that any compensation is fair, so that at such a difficult time for the country financially we are not paying out thousands of pounds of compensation to women who were well aware of the changes, and that we are not insulting those badly affected with a mere £1-3,000.”

I have looked at the PHSO report and couldn’t find a reference to this 43 per cent who knew. If this is true it means that over 1.5 million will get nothing even if the government decides some compensation is due.

Meanwhile the campaign by CEDAWinLAW goes on. Jocelynne Scutt, the former Australian judge, who headed an independent tribunal into the fate of 50s women who lost their pensions for six years, was handing in a letter following a petition signed by 37,000 at Number Ten Downing Street today to drive home to Sir Keir the strength of feeling over the discriminatory issue and the need for mediation with ministers. WASPI, which represent 186,000 of the 3.5 million affected say they will have a meeting with minsters next month.

Here’s a newly edited video of the visit by Jocelynne Scutt explaining the latest moves by CEDAWinLAW.

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