Frankly, I’m not sure why we need yet another thread on WPF as it’s already been much discussed but I am going to repeat things I have already pointed out elsewhere because it adds perspective and balance to this argument.
a) WFP is not a contributory benefit.
b) the WFP has not been increased (other than temporarily) in 24 years since it was increased to £200 in the year 2000. The extra £100 for people age 80 and above was introduced in 2003.
Why do people think the payments have remained the same? Energy bills have risen over 20 years so why hadn’t the WFP been increased accordingly?
It’s because successive governments have been debating the WPF for years. All agreed that it was poorly targeted but there was always a reluctance to withdraw it, or rather at what level to withdraw it, because so many pensioners are not claiming other benefits to which they are entitled. It makes no sense to pay a universal benefit to those who don’t need it just because others don’t claim help that they could.
The Conservative government commissioned a briefing paper, published in November 2019 asking for options for reforming WFP. The options were:
1. Restrict WFP to those in receipt of pension credit
2. Tax it
3. Withdraw it from high income pensioners
There were difficulties of application in all three options. The effect of those on the margin of being able to claim Pension Credit was acknowledged. A measure of taper relief was suggested.
I have posted the link to the paper many times but it’s a measure of this site that few people seem to read things or will acknowledge that the previous government were considering doing this if they could find a way around the difficulties.
You can read the paper here:
researchbriefings.files.parliament.uk/documents/SN06019/SN06019.pdf
I think we should also acknowledge that the former government knew that pensioners form a large core of its supporter base and would have been wary of alienating them. In election campaigning, Sunak promised a tax age allowance to mitigate the effects of the fiscal drag that he had triggered in 2021 by freezing tax personal allowances. This would have caught an increasing number of poorer pensioners in the tax net. He omitted to tell voters that there had been a tax age allowance in force since the 1970s, introduced by a Labour government but which George Osborne abolished in 2013.
As it happened, the time for reforming WFP in 2020 wasn’t right.
In late 2019, a pandemic was on its way. People were confined to their homes so were spending more on energy. Older people were more vulnerable to Covid and many needed to shield. The easing of Covid restrictions was swiftly followed by the war on Ukraine and the resulting cost of living and energy crises. These saw all households given help with energy bills through the Energy Bill Support Scheme and pensioners with temporarily increased WFP.
Psychologically, I think that is part of the shock of this for all pensioners - that we have received elevated levels of help for the last two winters. I received £900 of help in 2022, £500 WPF and £400 EBBS. Another £500 WFP in 2023. This year it would have been back to £200 but instead will be nothing. I can afford it but it’s still something I had become used to.
For the record, I think Reeves has handled this badly. It was never going to be a popular move but had she given people a year’s notice they could have prepared and budgeted. Removing it while acknowledging in the same HoC speech, the huge under take up of pension credit (and other benefits that this gives a gateway to) was an admission that some people will suffer. But the DWP are not going to be able to fix this before the cold weather arrives even if people do claim. For the sake of the estimated saving of 1.5 bn a year, it could have waited. We shall have to wait and see whether there are any measures in her Autumn Statement to mitigate what she has already announced.
Finally, it isn't unusual for a new government to introduce unpopular measures at the start of its period in office. Many of us born in the 1950s will be all too familar with the Pensions Act 2011 soon after the Coalition government was formed in 2010 and the further loss of anticipated income as a result of that.