Liz Kendall has said she sees “no tension” in government over plans to make savings from restricting winter fuel payments to vulnerable pensioners and an increase in people securing pension credit.
The work and pensions secretary stressed she wanted all people eligible for pension credit to have the benefit, regardless of whether it could limit the government’s attempt to repair the “dire state” of public finances.
Ministers launched a pension credit publicity campaign in August, yet Kendall told the Commons work and pensions select committee 800,000 eligible pensioners had still not applied for it.
Winter fuel payments have been restricted so only those claiming pension credit from this winter are eligible to receive the benefit worth up to £300.
The government made the decision in the hope of saving £1.5bn a year, although a boost in people securing pension credit will naturally reduce the amount of money saved.
Many Labour MPs remain privately concerned about the government’s decision to radically restrict winter fuel payments, over fears poorer pensioners will have to make choices between heating and eating a decent meal.
Kendall said: “I would like every pensioner who is entitled to pension credit, up to £3,900, to get it, yes,” she told the Commons work and pensions committee.
Pressed on whether this would be the case regardless of costs to the government, she added: “Regardless, because they are entitled to it. That is what I want to see.”
When asked specifically if there was a tension in government about this, Kendall said: “For me there is no tension because I think it is a scandal that over 800,000 pensioners, the poorest pensioners, are losing up to £3,900 in pension credit that they should be entitled to.”
Kendall also signalled her interest in reforming the pension credit application process. She told MPs: “I also know that over many years we have not been able to solve this because … it is difficult to increase take-up. People don’t want to claim, they feel a stigma or [are] ashamed of claiming. The pension credit form is very long.
“We have got more people doing this online now but we have got to solve that and I think it should not be beyond the wit of man or even womankind to actually solve this problem, which is why ultimately we have got to make this a much more automatic entitlement.”
Ministers have faced criticism for slashing access to the winter fuel payment, with opposition MPs urging them to rethink the move.
The social security advisory committee, a group of independent experts who advise the Department for Work and Pensions (DWP), has said the savings from limiting the allowance to only the poorest pensioners are unclear and could be outdone by a rise in those seeking pension credit.
The DWP began publishing data for weekly pension credit applications after Rachel Reeves said in July she would limit the winter fuel allowance, but the publication of these statistics stopped in mid-September.
