Ros Altmann: It is time for a national emergency plan to help elderly people survive the tough times ahead
The House of Lords revolt led by Baroness Altmann, former Pensions Minister, against Government’s suspension of triple lock on state pensions.
Her efforts were rebuffed by MPs You voted to increase the rate by 3.1% next April.However, the inflation rate is now at 5.1 percent.
Altmann claims that the government has failed to recognize the magnitude of the problem facing seniors, with rising fuel costs and people relying on their pensions.
She calls now for an emergency winter plan of action.
This winter is a difficult one for pensioners as inflation and fuel costs soar, but the quality of their pensions fails to keep pace.
This winter the government must tackle the rising living cost of elderly people who are particularly vulnerable.
Tens of thousands of elderly people die each winter from respiratory diseases caused by colder temperatures.
In recent years, official statistics show that there have been more winter deaths than ever before among the elderly.
The low state pensions in developed countries and the fact that older adults need to be kept warmer than younger people means that even during normal years, many seniors succumb to the effects of bad weather.
This winter has been unusually cold, partially due to the fact that people are insulating from Covid and partly because of the sudden spike in heating costs.
Pensioners are already feeling the effects of Ofgem’s Oct. increase in its energy price cap. In the coming months, more price hikes will occur.
Struggling to pay bills: The pandemic left over two million people in extreme fuel poverty.
The risks this presents are particularly serious for Britain’s pensioners who already struggle to make ends meet on their pensions. Many of them have no or very limited help.
More than two million retired people were living in poverty, and more than a million lived in extreme fuel poverty prior to the pandemic.
After the Government abandoned its triple lock promise, pensioners will be left living in poverty by the rising heating bill and the meagre 3.1% rise in state pensions in April.
Recognize that it will be a significant hardship for the government if they do not increase state pensions to at least match earnings.
The plight even of the most vulnerable pensioners has not been recognized by the government.
A national emergency plan is needed to assist them in the difficult times ahead.
Below are my ideas for a Pensioner Winter Manifesto, to save people’s lives.
1. Campaign to Increase Take-up of Pension Credit
Nearly four out of ten pensioners eligible for pension credit do not receive it.
This represents the lowest rate of take-up of all means-tested benefit and the unwillingness of pensioners for additional help.
These people are too proud to realize that they have a right and not a need.
The top-up they receive for their state pension could be worth many thousands more pounds per year.
HMRC and the DWP could collaborate to find those entitled to increased payments. This would be better than waiting for claimants.
It is imperative to make pension credit an’state-pension top-up’. To help pensioners realize that they have the right to the money, a nationwide advertising campaign should be run on TV, radio and other mainstream media.
2. Pension credit is available to everyone over 60, especially for those with poor health.
More older people should have access to pension credit. The eligibility criteria for pension credit have become more restrictive in recent years.
As a result, pension credit eligibility has increased to 60 years old. All household members must be above the state pension age in order to claim any pension credit.
Pension credit is not available for households with more than one adult over 60. It will be only paid to those who were both born prior September 1955, which means that they are around age 66.
This means that many pensioners no longer have the ability to access extra support for their living costs.
It will make it more difficult for elderly persons to work, and they won’t be eligible for additional state pension top ups.
3. Heater benefits increase
The winter fuel payments are now lower than they were in 2009. Cold Weather Payments of £25 a week have not risen since 2008. The Warm Homes Discount of £140 a year has not increased for over 10 years.
They are urgently in need of being updated after they have been reduced or maintained the same level over the years. These could be raised to accommodate rising heating bills for pensioners.
Winter Fuel Payment: This payment, which was reduced in 2011 but has not changed over the past ten years, is still available. The Winter Fuel Payments were first offered to pensioner households. They went to everyone over 60 at the time.
In 2009, households with someone aged 60-79 received £250 tax-free each winter, while the over-80s were paid £400 tax-free.
In 2011, this was reduced to £200 for households with someone over age 60 and £300 for over-80s. The eligibility age has increased, but the amount hasn’t changed to keep up with rising fuel prices.
Warm Home Discount: This has stayed at £140 for over ten years. This discount is available to people who are eligible for certain benefits (e.g. pension credit) and allows them to save on their heating bills.
While the government is listening to suggestions for expanding the coverage of younger households, it is not planning on providing additional help for the pensioners.
Cold Weather Payment: This has been frozen at £25 a week since 2008.
In 1986, it was established to give extra income for those who were most in need of money during extreme weather.
If temperatures drop below freezing for seven consecutive days during November-March, you can claim a Cold Weather payment.
It was increased to £25 a week in 2008, and has remained the same ever since, despite rising inflation.
4. The DWP should urgently find and pay those who have been underpaid in state pensions
For many years, the Department for Work and Pensions underpaid thousands of pensioners. It has yet to find out their identities or ensure they get back payments.
This process should be expedited.
Women and people over 80 are particularly at high risk.
All the over-80s, who are not receiving their full £82.45 ‘Category D’ state pensions, should be contacted to get them their extra payments.
>>>Have YOU been underpaid state pension? You can find out more here
5. Family, friends, and neighbors should check in on the senior citizens.
We ask that everyone keeps in touch with the elderly to make sure they’re eating right and are comfortable.
You can check on your children to make sure they’re well taken care of throughout winter. Covid has cut off support for many of these people, putting them at great risk.