Although it has been 13 long days (and nights) since Chancellor Rachel Reeves stole money from pensioners to help fund inflation-beating pay rises for public sector workers, anger at her malicious decision has yet to subside. It rages like an erupting Mount Etna.
Over the past week, hundreds of readers have contacted me to say they are outraged by your decision to immediately end the universal entitlement of pensioners to an annual tax-free winter fuel payment of up to £300 (£200 for most).
And the emails keep coming into my inbox (thank you, please keep them coming).
Chancellor Rachel Reeves announced the controversial change at a press conference three weeks ago.
Having flown across the Atlantic for a few days to promote the UK to potential international investors, I’m not sure Reeves realises the stir his actions have caused.
Without being melodramatic (me? Never), readers are furious. Some even want to take to the streets and march on Downing Street to demonstrate (peacefully, of course) their hostility to the hasty and unpleasant profit-grab.
And if they do, I’ll be right there by their side.
In summary, readers believe that the restriction on winter fuel payments for those in receipt of pension credit has been introduced too quickly and does not give many financially struggling pensioners enough time to adjust their household budgets to take into account the impact on their income.
As many as two million older people will struggle to keep warm this winter as a result of Reeves’s ruthless measure, charity Age UK warns. These are pensioners, Age UK says, whose finances are tight but who either do not qualify for pension credit or have not claimed it.
Retirees are struggling financially every day. Why have 880,000 eligible retirees not applied for a pension loan? There are several reasons: they don’t know how to do it, they don’t know how to use the Internet or they stoically refuse to be a burden on the state.
Many readers now fear for their financial future. They believe that this assault by Reeves marks the beginning of a financial assault on pensioners, with the Chancellor looking out for her masters (the unions) and pandering to the public sector. They are right to be worried.
As well as ending winter fuel payments for millions of people, Reeves has announced the removal of the £86,000 cap on welfare payments that was due to come into force at the end of next year. This could mean pensioners having to sell their homes to fund long-term care costs.
The budget, due at the end of October, will also be painful for the elderly. Having promised not to raise income tax, VAT or social security contributions, Reeves is likely to introduce a more draconian inheritance tax regime.
This will limit grandparents’ ability to pass on wealth to their loved ones without their estates taking a major tax hit.
In defence of the Chancellor, she indicated last week that she has no plans to require pensioners to pay National Insurance contributions on any income they generate from their work (thank goodness for that).
But after doing the dirty work on winter fuel payments, it may be willing to restrict other benefits for retirees (such as free prescriptions, vision exams and bus passes).
Late last week, Baroness Altmann, an avid campaigner for the elderly, urged Mr Reeves to suspend his changes to the winter fuel payment pending a thorough review of their impact on the most needy retirement households.
As well as saving many pensioners a potentially cold winter by reducing heating costs, Altmann says this would give the Chancellor the opportunity to propose some fairer changes.
Charity Age UK warns that up to two million older people will struggle to keep warm this winter due to Reeves’ ruthless measure
For example, removing the fuel payment from pensioners who pay a higher or additional tax rate, a measure which I am sure many “richer” pensioners would not oppose. At the very least, Reeves should take into account what Altmann says.
Many readers have asked this newspaper to launch a petition against Reeves’ savage attack on winter fuel payments.
It’s a good decision and we’ve thought about it a lot, but our view is that you should support the online petition already launched by Age UK.
This prompts the Chancellor to reverse her decision to subject the payment to a means test.
Almost 350,000 people have already signed the petition. If you haven’t already, visit ageuk.org.uk. You can request a paper copy by emailing campaigns@ageuk.org.uk or writing to Freepost Age UK Campaigns (no expensive postage stamp required). I have added my signature to the campaign.
My view is simple: mistakes must be corrected, and this brutal restriction of an important benefit for retirees is a political mistake of monumental proportions.
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