Cuts to the UK’s benefits system are set to be even deeper than originally promised by Chancellor Rachel Reeves as she battles to tackle a black hole in the public finances.
Instead, Reeves has submitted a range of policies to reduce welfare spending ahead of an updated forecast on the economy and public finances at the Spring Statement, on 26 March.
In a bid to plug the fiscal black hole, the Government changed the eligibility to the winter fuel payment meaning up to nine million pensioners lost out on the benefit.
Sue Johnson, 75, who lives in Chelmsford, Essex, said she religiously details every expense to make sure she can afford the basics.
Sue Johnson, 75, lives on a very tight budget to make sure she can afford the basicsMs Johnson, who has two children and five grandchildren, while her husband has three children and four grandchildren, says she doesn’t receive the full state pension as she left work when she was 60 and had time off to look after her children when they were younger.
“So the way it works is that when I am in Sweden with him, he pays for everything because his Swedish pension is considerably larger than my English pension.
“Before the cost of living crisis, when we were staying in England, I paid for everything. But now I can’t afford to do that. So now when we are here, he pays for half the food and for his share of the gas and electricity because I can’t afford to support him in the way I used to.”
Sue with her husband Bertil“With the prices of everything going up so much, even with being careful and budgeting, there is not much left over after paying all the bills each month,” she said. “We don’t go out very much and practically never have a takeaway. We just buy the basics and don’t have luxuries.
Ms Johnson says she has been a Labour supporter all her life and is upset at the way Labour seems to have changed its stance.
“The cost of everything is going up and it is the poorer ones like me who are penalised instead of the rich ones. I don’t understand how a Labour government can do that.”
“Life is a struggle and I don’t have enough money to survive on,” he said. “At the moment, I have got no coffee and no milk and I don’t have any money to buy some until I get my pension next week.”
Simon Moss, 70, who lives in Sunderland, says he is struggling to survive on the state pension and currently has no coffee or milk and no money to buy them until he next gets his pension
“My heating bill is £90 a month and that’s without putting it on as I only put it on when it’s absolutely necessary. And my supplier now wants to put my direct debit up to £120 a month to cover the rising costs. I don’t get the winter fuel payment any more.
“I have no social life and I have cut back everything I possibly can.”
Pension Credit
Pension Credit gives you extra money to help with your living costs if you’re over State Pension age and on a low income. Pension Credit can also help with housing costs such as ground rent or service charges.
You might get extra help if you’re a carer, severely disabled, or responsible for a child or young person.
If you get Pension Credit you can also get other help, such as:
Housing Benefit if you rent the property you live in Winter Fuel Payment Support for Mortgage Interest if you own the property you live in a Council Tax discount a free TV licence if you’re aged 75 or over help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get a certain type of Pension Credit help with your heating costs through the Warm Home Discount Scheme a discount on the Royal Mail redirection service if you’re moving house“If the Government makes any more cuts which affect pensioners, it is going to make my struggle even more difficult,” he said.
“Why attack those who are already struggling who will be most affected by any cuts? It is shocking and immoral.”
“These are people often on the lowest incomes who are hit the hardest by rising costs, as their tight budgets leave no room to absorb price increases.
“Millions of people across the UK already don’t have enough income to cover their basics. Our local debt coaches are visiting families and individuals who are often very isolated, living in cold homes with empty fridges, as they struggle with a range of complex and challenging circumstances that have led them into debt and poverty.
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CAP wants to see a protected minimum amount of social security, known as an Essentials Guarantee so that the basic rate of social security always covers life’s essentials and ensures support is never pulled below an unacceptable level.
Reeves decided to scrap universal winter fuel payments shortly after Labour’s election victory last July, as the Government looked to plug a reported £22bn hole in the public finances.
The backlog of pension credit claims soared to 92,400 by 23 December, according to pensions minister Torsten Bell.
The Treasury estimates that more targeted, means-tested winter fuel payments would save around £1.4bn a year, with Starmer saying in November that the cut “makes sense” as many previously claiming were “relatively wealthy”.
“We have been clear that the current welfare system is broken and needs reform, so that it helps long-term sick and disabled people who can work to find employment, and gives people the support they need, while ensuring fairness for the taxpayer.”
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