Home Money JEFF PRESTRIDGE: The reduction in winter fuel bills is outrageous. The BBC should be ashamed of itself for what it has said about this…

JEFF PRESTRIDGE: The reduction in winter fuel bills is outrageous. The BBC should be ashamed of itself for what it has said about this…

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Chancellor Rachel Reeves, who announced the decision to remove winter fuel payments from 10 million pensioners

Shame on the BBC for helping Labour defend its decision to strip 10 million pensioners of winter fuel payments, while its news broadcasts “reveal” details from the Treasury about inflation-beating state pension rises expected from April.

Last Thursday, as I listened to the report on Radio 4’s Today programme on the way to work, my mood went from happy to furious. The passenger sitting next to me on the Great Western Railway train to London Paddington shifted uncomfortably in his seat as I muttered a few expletives under my breath (I promptly apologised).

BBC News’s editors should feel deeply ashamed of themselves for having allowed themselves to be cynically used as a political tool by the Labour Party. But the truth is that their coverage of the Government’s ruthless reduction of the winter fuel payment for all but those in receipt of pension credit (and a few other benefits) has not been challenged since the Chancellor of the Exchequer, Rachel Reeves, announced the decision. Like Labour, the BBC shows little empathy for older people.

Chancellor Rachel Reeves, who announced the decision to remove winter fuel payments from 10 million pensioners

Jeff Prestridge with a petition regarding winter fuel payments to be presented to Ms Reeves

Jeff Prestridge with a petition regarding winter fuel payments to be presented to Ms Reeves

The information about the expected rise in state pensions next year was based on “internal calculations” by the Treasury which had been seen by a BBC journalist. I cannot for a moment imagine that these “calculations” were the product of clever journalism or that a civil servant had accidentally forgotten them on a train and passed them on to the BBC to “see”.

Of course not. Someone at the Treasury, using a magic trick, handed them over to the BBC in an attempt to calm widespread anger over the reduction in winter fuel payments.

This anger is entirely justifiable, given that analysis by former pensions minister Sir Steve Webb – in his role as a partner at the LCP consultancy group – suggests that 84% of pensioners living in poverty will lose their fuel payments, worth up to £300. Treasury figures “seen” by the BBC suggest that those in receipt of the “new” full state pension will receive an annual increase of more than £400 in the new financial year, a result of the triple lock which guarantees pensioners an annual increase based on the greater of two factors: inflation, average earnings or 2.5%.

In other words, a 3.5 percent increase would more than make up for the loss of the winter fuel payment, although of course only half of pensioners on the new state pension receive the full amount.

Although the BBC says this will mean an annual state pension of around £12,000 for those receiving the new full state pension (compared with £11,502 this financial year), older pensioners (pre-2016) will receive a smaller increase of around £300. This will mean an annual pension from next April of around £9,000, compared with £8,814 at present.

So many over-80s who will lose their £300 winter fuel payment will be no better off next tax year than they were this year. Scandalous.

For the record, this two-tier state pension is appallingly unfair and with every passing year the gap between the “new” pension and the basic one grows wider. It’s an issue that comes across my inbox every week. As always, Baroness Ros Altmann, a tireless campaigner for older people, hits the nail on the head.

Following the BBC’s collusion with the Treasury’s internal calculations, he said: ‘Older pensioners are about to lose £300 without warning – money they had expected to receive this November.

“That money could have helped them get through the winter warmer. The poorest and oldest will now lose hundreds of pounds, and promising them a few extra pounds a week next spring is cold comfort. Sadly, some will not survive the next few months.”

Altmann believes ministers should take a step back, pause the changes and re-examine how to tax or restrict winter fuel payments, rather than simply taking it away from many poor pensioners.

There will be a vote in the House of Commons this week on Reeves’ proposed reform of winter fuel payments. I sincerely hope that many Labour MPs will ignore the BBC’s distorted reporting and express the views of their constituents by voting against the changes.

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Insurance companies trample on customers

Although insurers and their trade body, the Association of British Insurers, claim that increases in home and motor premiums are slowing, anecdotal evidence suggests otherwise.

Readers regularly report to me increases of more than 50 per cent imposed on them by insurers when renewing their policy. Last week, I had a long conversation with marketing consultant Danny Russell, who has been told that his multi-cover policy with Admiral will rise by 49 per cent when it renews at the end of this month.

The combined car and home insurance premium will rise from just under £617 to just over £921. The excess for motor cover will also rise, from £250 to £350. Danny is baffled on many levels. Since taking out insurance with Admiral four years ago, he and his wife Julia have had no road accidents, made no claims and accumulated no points on their licences.

Age is not a potential issue either: both are over 50 (older drivers regularly suffer price discrimination). As for coverage for their five-bedroom home in Thames Ditton, Surrey, it’s the same: no claims have been made.

Danny is understandably quite angry, a rage fueled by the fact that the Admiral has provided no reason for the promotion (the very least he should do).

“I don’t understand it,” Danny told me last week. “It seems that price competition in the industry is weak at best. No insurer is willing to do whatever it wants while others do whatever they want.”

Danny believes that the home and auto insurance markets are in crisis. It’s hard to disagree.

Insurers are treating their customers with disdain, and only consumer journalists are standing up for bewildered people like Danny and Julia Russell.

…and a lyrical view of the Labour Party “stealing” from pensioners

1725798761 144 JEFF PRESTRIDGE The reduction in winter fuel bills is outrageous

I am indebted to reader Arthur Gilbert for his lyrical interpretation of Labour’s decision to scrap the winter fuel payment.

Arthur, a retired valuer from Billingham, County Durham, is a talented individual who regularly emails me with his views on key personal finance issues.

He also has a wonderful Facebook page called Gilbert’s, Have Bus Pass Will Travel, Travels, which gives information about walks people can do near where they live. I wish I’d known about it two months ago when I spent a couple of days getting wet in Whitby. Arthur’s recommended walk along the old railway line would have been more fun than the slippery Cleveland Way.

Arthur said his lyrics should be sung to the signature tune of ITV’s The Adventures of Robin Hood. The closing theme, Robin Hood, was written by Carl Sigman and sung by Dick James.

I remember it well from watching the series (with Richard Greene, above) with my younger sister Joy in the 1960s. I’ve edited Arthur’s lyrics (sorry, Arthur) and given you only a sample of them, but there’s no doubt that it sums up the thoughts of many pensioners who feel they’ve been robbed by the Labour Party.

Thief Hood, Thief Hood

Riding around the house

Thief Hood, Thief Hood

Winter fuel payment to slow down

Loved by the bad, feared by the good.

Hood Thief, Hood Thief, Hood Thief

The Labour Party has taken away winter fuel payments from the needy,

Blame Hunt for a

A 22 billion pound black hole

While large salary bonuses are awarded

To the unions, the greedy ones

And how they boasted: “Now we are in control”

Thief Hood, Thief Hood

Riding around the house…

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