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ALLIANCE express concerns over lack of clear evidence base for Winter Fuel Payment decision

  • Area of Work: The ALLIANCE
  • Type: News Item
  • Published: 13th September 2024

The ALLIANCE are concerned by the impacts on older people, lack of transparent impact assessments, and role of devolution.

The ALLIANCE share the deep concern across the third sector about the recent UK Government decision to restrict the eligibility for the Winter Fuel Payment from anyone in receipt of the state pension to those receiving Pension Credit. Pension Credit uptake is relatively low at 63% and there is a “cliff-edge” to eligibility, where income of even £1 over the threshold removes entitlement entirely. This will mean the withdrawal of essential financial support from many older people at the time they most need it, as fuel bills are set to increase again.

Whilst we recognise that there is a difficult financial situation facing both the UK and Scottish Governments, it is vital that decisions are rooted in respect for human rights and do not exacerbate existing income and health inequalities. Reports that the UK Government will not publish any relevant impact assessments that informed their decision are worrying, and it would be particularly disappointing if no such assessments had been conducted at all.

We are also concerned about the knock-on effect this has had on the devolved Pension Age Winter Heating Payment (PAWHP) which is due to replace the WFP in Scotland this winter. Following the UK Government’s decision to significantly reduce the availability of the payment, the Scottish Government announced that due to the consequential reduction in their own available funding, they considered themselves to have no choice but to follow suit.

In our response to the PAWHP consultation the ALLIANCE supported maintaining the universal nature of the payment, which ensured high uptake of WFP without the need to apply or to administer a costly and potentially complex system of means testing. We have previously, for example in our response to the previous UK Government’s “Modernising support for independent living” green paper, noted that current arrangements between the two governments in relation to social security risks forcing the Scottish Government to take decisions against their own policy preferences and intentions.

The ALLIANCE would encourage the UK Government to publish any impact assessments it may have undertaken to inform their decision as a matter of transparency. We also call on the UK Government to work with the Scottish Government to review the fiscal framework, particularly as it relates to social security payments, to ensure that devolution of such payments allows for meaningful, independent decision making on the part of the Scottish Government. In addition, both governments should commit to taking a human rights budgeting approach to all public spending decisions, to ensure they do not negatively impact those already on the lowest incomes or with the poorest health.

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