Winter fuel payment plan gets the cold shoulder
- Published
The sun was glowing in west Belfast on Tuesday, but the government’s decision to restrict winter fuel payments for pensioners got the cold shoulder from the public.
The Chancellor, Rachel Reeves, has said the payment will now be subject to a means test in England and Wales.
In Northern Ireland, ministers will decide whether to follow the government’s decision.
Finance Minister, Caomihe Archibald, says the Stormont executive will have to discuss the matter.
If the Executive decided to maintain winter fuel payments as a universal benefit, they would have to fund it from their existing budget.
'Don't do it'
BBC News NI visited the Falls Road and the Shankill Road to gauge reaction from members of the public about what they think of any proposed change.
Brendan Magee had a simple message for ministers in Northern Ireland: "Don't do it."
”I think it is very unfortunate, and a pity if it comes to that, because a lot of people will suffer," he said. "It’s a big step.
“I know it is going to be difficult for the finances. It is not a vote winner.”
Mr Magee said that if the measures were introduced in Northern Ireland, the impact would be "very severe".
“Obviously it would be difficult for some, more than others," he added.
“It is down to the politicians, if they can find the money, well and good. If not, that’s it.”
Colette Devlin, said she was "very angry" about the proposals, "because I don’t think they should take anything off pensioners".
“I have worked all my life, paid my dues," she said.
“I’m a widow as well, and that £200 a year really helped towards my heating bills.
“I think they should look elsewhere; they seem to be taking everything off pensioners at the moment, which I don’t think is right."
'It is ridiculous'
On the Shankill Road, local resident Sandra Wadsworth said it was "unbelievable" that restrictions on the payment were planned.
She said it would be a “disgrace” if it was implemented in Northern Ireland.
"Of course they should keep it."
“It is ridiculous," she added.
"Sure everything is away up - your rent, the gas, the electric.
“How do they expect old people to pay all that? And the winter coming in."
David Napier said his budget was already tight without the prospect of potentially losing more money.
He said the government should be focused on "putting money into the health service".
"We should be entitled to the payment; we are getting things tough enough as it is," he said.
"They should keep it in Northern Ireland.
"I get it; I'm 68, and it comes in handy."
'Disastrous impact on older people'
Age NI said it was particularly concerned about the impact on older people who are not eligible for pension credit.
The charity director, Paschal McKeown, said he strongly opposed the measure because it "would have a disastrous impact on the lives of older people who are already struggling."
In a statement, the Department for Communities Minister Gordon Lyons said it was "disappointing news" that would create an additional financial burden for those who are less well off.
He added that he would provide an update for the executive in due course.
What is the winter fuel payment?
The winter fuel payment is a benefit paid to pensioners, designed to help them afford the higher energy bills that come with keeping a home warm during the winter.
It is between £100 and £300, depending on the age of the recipient and whether or not they live alone.
The Chancellor says those who are not in receipt of pension credit or other means-tested benefits will no longer receive the payment.
Pension credit is a benefit paid to people on low incomes who are above state pension age.
Social security is almost entirely devolved to Stormont, though in practice Northern Ireland normally maintains parity with the rest of the UK.
That is because pensions and benefits are paid directly by the UK government, but if Stormont wanted to have a more generous system, it would have to find the money from the budget for other public services.
After the major welfare changes introduced by the Conservative/ Lib Dem coalition, Stormont chose to pay for some mitigating measures.
How much funding will the Executive receive?
The minister said it is unclear how much additional money the NI Executive will get as a result of the Chancellor’s announcement.
Ms Reeves said the government intends to spend more than £9bn on public sector pay settlements which will in turn mean more money for Stormont.
However, the Chancellor wants to fund £3bn of that by finding savings from existing budgets.
Until that savings exercise is completed it will not be clear how much new money will be available for Stormont.
It could be close to October’s budget before ministers will have clarity.
The Chancellor has defended her decision to scrap winter fuel payments for about 10 million pensioners.
She told the BBC she had found a "black hole" in the public finances and "had to act" to "fix the mess".
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