The Winter Fuels Payments cuts are essential for economic recovery says Labour
In a Labour online briefing that Down News attended, Alison McGovern, a Labour MP for Wirral South, set out the position on why the new Labour government had to introduce cuts to the Winter Fuel Payments to the elderly.
The Treasury Minister said: “The previous Conservative government has left a £22 billion black hole in the budget and we have to fill it. This was in our manifesto.
“No-one wants to be in this position and it is not a decision we have had to take lightly to cease payments to some pensioners.
“In the context of the broader plan, people in the country voted for change and we now have to deal with the issues of economic stability.
“Already we have set up Great British Energy and the Warm Holmes Plan to ensure warm, dry and safe homes.
“The retirement pension is protected by the triple lock and will be rising by 2.5% determined by earnings or prices. Pensions went up around £900 last year and will rise a further £1000 over the next five years.
“And the Pension Credit Scheme is also there as a back up for many pensioners. PM Gordon Brown introduced the Pension Credit to support the many pensioners in poverty. There are still many people eligible and not receiving it. You can apply online or contact the Pension Credit branch.
“We are working hard to close this gap in Pension Credit. This is not a perfect situation and it would be much better if we did not have to face the huge Home Office spends left by the Conservatives.
“Therefore the Labour government has to maintain economic stability and has to deal with the budget. There will be a huge prize in the longer term if we get through this difficult phase. It will underpin the economy and provide jobs and we will then be able to invest in the public services.
“I know things have been tough for pensioners over the past few years. We want to create community investment and jobs, and create public services the pensioners really deserve.”
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On the horns of a dilemma
So, it seems that Labour is facing a dire situation as the coffers are bare in the Treasury, and that cutting Winter Fuel Payment (temporarily) may just be the first of many devices that Labour will employ as the next budget approaches.
Many pensioners now will be faced with ‘heat or eat’ choices’ this winter. But it will get worse before it gets better. The fever has not yet broken.
Business taxation, the rich, luxury goods, cigarettes, alcohol, increasing VAT, may all be considered as sources of government revenue. There are even ideas being discussed that Labour may even introduce a travel mileage tax on cars – but this would impact more on the rural population and those depending on a car to get to their place of employment, and certainly would be a very significant measure that would impact on many in Northern Ireland.
As the Tory press sharpen their axes, and dissenting rebel voices appear in the Labour ranks, PM Keir Starmer will travel cautiously on a rocky road ahead.
And against this backdrop of ‘national’ economic woes, the Northern Ireland Executive has presented for consultation its draft Programme for Government.
Given the limitation now on the block grant to satisfy departmental budgets, are we at some stage going to see a tightening of the screws at a more local and regional level with water charges, increases in business rates after the review and other costs being passed on to the ‘consumer’ in Northern Ireland ?
It is not a cheery picture, despite the great welling of satisfaction that the Conservatives were vanquished at the election, and in the post-election euphoria of the general election Labour seemed to offer so much hope from the chaos left by the Conservatives.
Will this hope turn into a sack of ashes ? We will have to wait and see.
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