Winter Fuel Allowance: Rachel Reeves relents on a policy Labour should never have done in the first place

05/07/2024. London, United Kingdom. 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

Last year the biggest hit on this blog was when I condemned the decision by Sir Keir Starmer and Rachel Reeves to abolish the winter fuel allowance for all pensioners except the poorest on pension credit. The blog went viral and currently stands at 188,400 with 129 comments.

The decision – one of the first by an incoming Labour government – was inept, stupid, ill thought out, and rushed – and showed that the Labour government was completely out of touch with its base and its reputation for helping the poorest.

There was a decent case for restricting the payment to the wealthiest members of society who did not need help with their fuel bills. But by setting the figure so low as £11,300 to get it and trying to get people to claim pension credit – which has been a policy failure for years – this was a serious own goal.

The decision to use regulations to do this was attacked by the House of Lords statutory instruments committee – when they examined the detail – and ministers by passed their own benefits advisory committee, the Social Security Advisory Committee, on the flimsiest excuse that they didn’t have time to do this to make sure it could be implemented as an emergency. The committee itself when it finally got to discuss the regulations pointed out it was perfectly capable to look at it at an emergency session. It did this when the last government introduced massive social security changes to cope with lockdown during the pandemic.

The optics also looked bad for any politician. Claiming they had found a huge black hole in government finances it looked as though the first people who would plug the gap were pensioners, many of them surviving on incomes less than £20,000 a year. Pensioners and the disabled also need warm homes in winter probably more than any other people and the government’s claim it was implementing the triple lock to raise pensions was no use in the winter. It would not be paid until the spring when temperatures begin to rise and some would be scrimping and saving to try and keep warm before receiving an extra penny.

The result came back to bite Labour in the spring council elections and Parliamentary by-election in Runcorn, when voters dumped Labour in droves turning to Reform, the Greens and the Liberal Democrats instead.

Labour MPs and activists found this was one of the most cited reasons why people turned against them during the election. As a result Reform could capitalise by gaining control of a swarth of county councils and some mayoralties. The Conservatives were still not trusted by people after their 14 years in government, but to be fair to them they never proposed to cut the winter fuel allowance in the first place.

Luckily for Labour it is four years to the next general election so there is a chance it might be forgotten how stupid they were after four winters. And the mechanism they have proposed to pay the allowance back to nine million pensioners is fair with those earning £35,000 or more having to pay back the money in their annual tax return. The big question is why they didn’t do this in the first place.

The overall policy will still save £450m versus the universal system. But £1.25bn of the £1.7bn projected saving when this policy was announced is gone. Rachel Reeves, the chancellor, was claiming she couldn’t have done this when the government came into power because of the state of the finances, but can now because the situation has improved. She will have to explain this big change in her statement to MPs this week.

In my view the government overall has lost a lot of support by targeting pensioners not only in this way but also in the way it has treated 50swomen who had to wait six years for their pension by completely rejecting any compensation for them and ruling out mediation. I am sceptical that the WASPI campaign will get anywhere by going to court to try and revive the now rejected Parliamentary Ombudsman’s report on partial maladministration.

The issue was always discrimination as well as maladministration and the Ombudsman’s report was a very tepid solution for those who lost tens of thousands of pounds.

And ministers are being dilatory in paying out money to HIV contaminated blood victims and those swindled by the Post Office computer scam. All these affect many in the same age group.

The government has got a lot to do to regain popularity to get a second term in office, but this U turn on the winter fuel allowance is only a start.

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Who offers 50s women best deal to get your lost pension money back when you vote on Thursday

Table compiled by CEDAWinLAW

The Green Party emerge at last moment as offering one of the better deals

The need to pay 3.5 million 50swomen compensation or restitution for their delayed pensions has hardly been a keenly debated issue in this election campaign. In fact it has hardly been mentioned by the main parties.

This table above gives an idea where the parties stand on the issue and does not make good reading.

It is quite clear that whoever becomes PM on Friday – more likely Sir Keir Starmer rather than Rishi Sunak – has no liking for an early decision to pay out the money. After the Parliamentary Ombudsman ‘s report on giving guidance to compensate people up to £2900 for partial maladministration – both the Labour and Tory Party still insist they have to study his findings.

The only word from the Tories is that they will make an ” appropriate decision ” at the time. This could be anything from a low offer or complete rejection- as Department for Work and Pensions civil servants argued in a submission to the Ombudsman’s inquiry.

Labour have done a complete U turn since the 2019 general election when the the shadow chancellor John McDonnell promised £58 billion compensation. Now his successor Rachel Reeves recognises there has been an injustice but has set aside no money to pay them. There is no mention in the Labour manifesto – instead it looks like Rachel Reeves is to prioritise getting equal pay for women in work instead by implementing a clause in the Equality Act. This would meet the UK’s commitment under the UN Convention on the Elimination of All forms of Discrimination against Women (CEDAW) but ignore discrimination caused by the delay in paying out pensions to 50s women.

So voting Conservative or Labour on this issue could mean the 3.5 million women could get nothing in the next Parliament.

The Lib Dems are far too vague about their support – just saying that 50swomen should be” treated fairly and properly compensated ” – but they don’t put a price on their compensation so you have no idea what they are going to support.

Others like the Scottish National Party who were strongly critical of the last government taking no action – do put a price on their compensation – saying it should be what the Ombudsman recommended and in line with what WASPI is demanding.

Quite a number of parties make it clear they support mediation – or Alternative Dispute Resolution. These include the Scottish Party, Alba, and the Alliance Party, Sinn Fein, the SDLP and DUP – virtually all Northern Ireland parties.

Mel Stride refused any mediation

The problem with this is that Mel Stride, the outgoing work and pensions secretary, will not enter talks so no progress can be made on this front – and unfortunately CEDAWinLAW had to abandon their judicial review against him to make him. It is not known if Labour forms the next government whether it will entertain agreeing to mediation.

Plaid Cymru has been very vocal about supporting 50s women and said it would want Parliament to pay higher compensation than the Parliamentary Ombudsman recommended going up to £9950. The party has also pressed the Welsh Assembly to hold an inquiry into how 50swomen have been treated.

George Galloway’s Workers Party is backing full restitution for the 3.5 million women and Gina Miller’s True and Fair Party is supporting mediation and CEDAWinLAW. Nigel Farage’s Reform Party does not give it a mention.

Green Party has strengthened its support for 50swomen

The Green Party are the only party to strengthen its stance on 50swomen during the election campaign. The issue is not mentioned in the manifesto but it has now decided to work with CEDAWinLAW. First Adrian Ramsay, the co-leader of the party, disclosed his mum was affected and backed Waspi’s campaign to get compensation for 50swomen. Then the Green Party Women group announced it would join the ADR group demanding mediation and tweeted “GPW have joined the #ADR group in support of mediation for #50sWomen. These women need JUSTICE. No procrastination. No kicking it down the road. We join@CarolineLucas, our own Co Chair @tinalouiseUK & some of our other PPC’s who have pledged to support. #CEDAWinLAW .”

Amanda Stones from the Green Party Women’s Committee said “As the special interest group in the Green Party that advocates for Women and Girls, and campaigns against sex discrimination we are very determined to try and get this historical discrimination rectified. Many of our members are 50sWomen including some on our own committee. We are extremely pleased to have joined the ADR group and we will be calling on any newly elected Green MP to demand justice for these women from whoever forms the next government. This ongoing discrimination must end.”

Another Green Parliamentary candidate Nataly Anderson, standing in Woking, announced on X she was backing CEDAWinLAW.

So who do you vote for? I am not telling you how you should vote but it seems obvious that a vote for the two biggest parties is unlikely to further your cause. So it will depend on the constituency. A vote for the Greens would help your cause in places like Brighton Pavilion ( Caroline Lucas’s old seat) Bristol Central, Waveney in Norfolk and North Herefordshire where the party stands a chance of winning and means you would have a voice for your cause to put pressure on the government.

In Northern Ireland any of the parties could further your cause, though Sinn Fein never take their seats in the UK Parliament. In Scotland a vote for the SNP or Alba would keep the issue alive while Plaid Cymru in Wales are taking a much stronger line than Labour.

Given there are 3.5 million women who have the vote the decision they take could influence the result of the election. The tricky decision in most of England would be balancing whether you wanted to get rid of the Conservatives at all costs which means voting for either Labour or the Liberal Democrats but that would depend on how strongly you feel on other issues.

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After sending up Boris Johnson, Joe Politics turns on Keir Starmer

The honeymoon must truly be over for Keir Starmer as Labour leader. Out today is a biting satirical video from Joe Politics on Keir Starmer and his move to shift Labour to the small c conservative right to attract back those “Red Wall ” voters. Corbynistas must be enjoying this one. Indeed Tommy Corbyn has already tweeted lol.