Struggling pensioners fear benefits shake up: ‘I can’t save any more’ ...Middle East

Pensioners struggling to survive on their state pension have spoken of their fears that possible welfare cuts will penalise older people who won’t be able to cope with any further reductions to their income.

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.

The i Paper previously reported the Chancellor has decided not to implement any further significant tax rises at the Spring Statement even if the budget watchdog says she is on course to break her self-imposed borrowing rules.

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.

The Government had already been planning to reduce the benefits bill by at least £3bn, but now it is expected the cuts will be much deeper.

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.

Two pensioners already cutting back told The i Paper they are already living on a tight budget and could not sustain any further reduction to their income.

Sue Johnson, 75, who lives in Chelmsford, Essex, said she religiously details every expense to make sure she can afford the basics.

The retired librarian has been married to Bertil Nilsson, a Swedish national for 16 years. Her husband has an apartment in Lund in southern Sweden and the couple divide their time between the two countries.

Ms 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.

“Bertil lives some of the time in Sweden and is paid in Swedish krona while I get my pension in English pounds, so we can’t really have a joint account,” she explained.

“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.

“The cost of living crisis has hit us in the UK, but it has also hit Sweden. Sweden is a lovely country, but it is more expensive than the UK.

“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.”

Ms Johnson has calculated that the actual amount she receives each month in total is £1,532. But after paying council tax, gas and electricity, broadband and mobile phone costs, water rates and food, as well as the costs of running a car, she says there is barely anything left.

“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.

“Now I don’t get the winter fuel payment as I am just over the threshold for pension credit, things are even tighter.”

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.

“Why are Labour penalising people who are on a state pension or have a disability or are on Universal Credit and are hard up anyway?” she asked. “Why are we the ones being targeted instead of people who are much richer and wealthier than me not being taxed more?

“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.”

Simon Moss, 70, who lives in Sunderland, told The i Paper he is struggling to manage on the state pension and often has to choose between heating his home and eating.

“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.”

The widower, who lives alone in a small bungalow, worked in customer services all his life and says he receives a small private pension which just takes him over the threshold for pension credit. He says he wouldn’t be able to manage at all if further cuts led to a reduction in his income.

“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 stopped doing a monthly food shop as I can’t afford it and I literally just go to the shop to buy essentials now.

“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:

Mr Moss says he fears the Government will “go after pensioners again” and says he wouldn’t be able to manage if he is hit with any more cutbacks.

“If the Government makes any more cuts which affect pensioners, it is going to make my struggle even more difficult,” he said.

“What I don’t understand is, why every time the Government makes cutbacks, do they hit the most vulnerable people who are least able to bear it?

“Why attack those who are already struggling who will be most affected by any cuts? It is shocking and immoral.”

Stewart McCulloch, chief executive of Christians Against Poverty (CAP), said: “Although we don’t yet know the details of the reported welfare cuts, we are deeply concerned about the possibility of any reductions to the incomes of those who are already in genuine need.

“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.

“However, further increases in energy, water and council tax bills are expected, and with inflation reportedly likely to rise in the coming months, even more pressure is being piled on people already living in poverty and unmanageable debt.

“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.

“The situation right now for many is desperate after years of rising costs.”

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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.

It also wants employers to ensure wages are sufficient to prevent employees from facing a situation where, despite working, they are still unable to afford their essentials and living on a deficit budget.

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 Government limited the energy bill support, worth £200 to £300 per household, to those in receipt of means-tested benefits including pension credit.

The backlog of pension credit claims soared to 92,400 by 23 December, according to pensions minister Torsten Bell.

Despite progress in cutting down the caseload, DWP staff were still dealing with a pile-up of 74,000 as of 13 January, said 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”.

A DWP spokesperson said: “We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,900 this parliament through our commitment to the Triple Lock, and our drive to boost Pension Credit take up has already seen 50,000 more new claims compared to the same time last year.

“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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