Pensioners and Winter Fuel Payments

Nigel Evans Excerpts

Tuesday 22nd November 2011 Commons Chamber

[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Three people have indicated that they wish to speak, and the wind-ups start at 7.18 pm. If they can divide the time among themselves, everybody will get in.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It gives me great pleasure to speak in this House on behalf of the elderly and those in need, and to address the issue of the winter fuel payment.

I read a statement the other day that said:

“The world is getting older. The UN has called the current global ageing trend a situation ‘without parallel in the history of humanity.’ Here in Northern Ireland, our very own society is ageing…An ageing demographic like this carries significant consequences for the fabric of our community. It changes how we plan the way we live; education systems, health and social care, work life, family life. It affects older people now and in the future.”

I am aware of the clear demographic changes in my constituency of Strangford, to which many people move to retire—it is a beautiful place to visit at most times, but it is also a nice place to retire—and where the issue of winter fuel payments comes up over and over again. It comes up because—let us be clear about this—winter fuel payments are not a luxury, but something that goes to pay for fuel, which, for most elderly people in my constituency, means oil. Therefore, the cost is greater than anywhere else. It is no exaggeration to say that literally hundreds of my constituents have spoken to my offices about this issue, and it is clear what they are telling me: winter fuel payments are critical for them to get through the winter.

Age NI has a vision for Northern Ireland and the United Kingdom:

“To create a world in which older people flourish,”

and:

“To enhance and improve the lives of older people”.

Those are the words of Age NI, but they should apply everywhere in the United Kingdom, and be taken on board by all the elected representatives in this place as well.

Age NI has three themes—health and social care; poverty; and equality and human rights—but this evening we are focusing on poverty. Poverty affects health and social care, and winter fuel payments and poverty affect equality and human rights as well. Although there are many ways of helping—my right hon. Friend the Member for Belfast North (Mr Dodds) spoke earlier about the pension credit, and the Minister responded in an intervention—we need a way of speeding the system up. The system needs a sense of urgency; I cite the number of times that I have to phone through to the pension credit system to ask for something to be done only for me to have to return to the problem a week later or perhaps the week after that. The system also needs less bureaucracy and paperwork.

The autumn spending review is an opportunity to put older people at the heart of Government policy and to plan for an ageing population. Northern Ireland has some 300,000 people of retirement age, who make up 17% of the population, and the trend is upward. Unfortunately, the figure will be 24% or 25% in a few years. The largest increase will be in what is sometimes referred to as the “older old”. It is not an “Irishism” to say that: it refers to those who are 80-plus, who feel the pain of winter more than most. Other Members have underlined that point today, stressing the importance of all those who fit into the pension bracket, but especially those who are 80-plus, of whom it is estimated that there will be some 130,000 in a short period of time. Again, that is a concern.

Two fifths of single pensioners and one fifth of pensioner couples have no income other than their retirement pension and state benefits. Whenever we put the issue in perspective, we see that the winter fuel payment means a whole lot to those people. Some 44% of my constituents are in fuel poverty. By the way, the same proportion of those entitled to draw the pension credit—44%—are not claiming it. When the Minister responds, I will be keen to hear her ideas about how we can ensure that they apply. One of the figures underlining this issue that came up in research is that average weekly unclaimed benefits are estimated at between £1.2 million and £2.3 million, which is a vast amount of money. It is important that we address those issues.

Some 23% of older people across certain parts of Northern Ireland are living in poverty, whereas the figure is 16% in the UK. The Minister referred to how we gauge the extra money in the winter fuel payment to reflect the temperature. I made the point in a Westminster Hall debate earlier this year that I drove from Greyabbey to Newtownards in my constituency, speaking to people along the way, and found different temperatures all the way up the road. Obviously the temperature is lower closer to the coast, but in certain parts of Ards it was below zero, while over in Ballygowan and Comber it was minus 3º or 4º. That is an illustration of how the temperature can vary within a 50 to 60-mile radius.

Why is it crucial that the winter fuel payment is made? Because a failure to do so will mean more referrals to the health service, with elderly care accounting for 21% of all the programme of care expenditure. I will not go into all the figures that others have mentioned, but I will make this point. It is important to make a “pre-emptive strike” when it comes to health, particularly through the winter fuel payment, which plays a clear role. For every death from cold, there are eight hospital admissions and 100-plus visits to GPs and health centres. When we add that to the figures, we know what we have to do about the winter fuel payment—it helps to avoid lots of those issues, too.

Elderly care expenditure per head for Northern Ireland is £2,086, while in Scotland it is £2,313 and in Wales it is £2,109. I would also like to make an important point—the hon. Member for North Down (Lady Hermon) made this point too—about Alzheimer’s and dementia. In some 26 years as an elected representative, I can never recall a time when so many people had dementia or Alzheimer’s. We therefore need to enable our senior citizens to enjoy a level of health that will not cost more later on. The winter fuel payment makes that contribution. The Government have stated that they will restore the earnings link for the basic state pension—that was indicated earlier. The income-poverty figures show that 23% of older people live in poverty, while the figure is 16% for the UK. Some 15% of people in Northern Ireland live in severe poverty—the figure is 9% in the UK, up 3% in the last year—while 30% of single women over 75 live in poverty, and 42% of those homes are condemned.

The winter fuel allowance is the biggest topic in my three advice centres. For those who qualify, the situation is simple. The price of oil has increased—indeed, it has never been as high. If the Government have any intention of reducing the winter fuel payment, balancing the books will not happen. Many OAPs have no income other than the state pension, as I said earlier. This was an issue last winter; it was an issue for me at the parliamentary elections a year and a half ago; it was an issue at the Northern Ireland Assembly elections back in May; and it is an even more critical issue today. I urge hon. Members to support our proposal.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Mr Weir, who is to resume his seat no later than 18 minutes past 7.