Salford’s mayor doesn’t claim to have a crystal ball, but somehow he appeared to have seen the saga surrounding winter fuel payments.
Earlier this year – a few months before the new Labor government announced it would cut the wages of millions of pensioners – Paul Dennett was unknowingly preparing for the move. In fact, the mayor decided to invest around £400,000 in it.
The universal payment for pensioners introduced by the last Labor government in 1997 will be canceled this winter, with only those claiming Pension Credit or some other benefits set to receive the up to £300 on offer. Announcing the decision in July, Chancellor Rachel Reeves pledged to help more people claim Pension Credit and revealed that 800,000 eligible pensioners were not currently claiming it.
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But Salford council was ahead of the game, deciding in February to invest £400,000 over three years to help more pensioners get the benefits they are entitled to. So far pensioners in Salford have claimed an extra £1.6 million, including Pension Credits.
But even though he is better prepared than most for cuts to retirees’ incomes, the mayor is still concerned about the move. He lobbied lawmakers representing every part of the city to explain why he was concerned about the impact of the decision.
It seems some share his concerns. When a vote was held in Parliament last month, Salford MP Rebecca Long Bailey, who is now in danger of being suspended from the Labor Party for rebelling against another vote, actively avoided supporting the controversial move.
To talk Manchester Evening NewsMr Dennett said he feared many pensioners were ‘proud’ of not receiving the benefits to which they were entitled. He says that applicants face a ‘cumbersome and complex’ application process.
But he also has a solution. The Labor mayor believes pensioners who qualify for payments should be automatically enrolled.
He said: “I don’t know how feasible or possible this is but in my view, given that we have all this tax data and all this pension data, we certainly know who qualifies for pension credit. So why don’t we just enroll them automatically?” do you want?
“I put forward this idea, I shared it with our MPs, I shared it with our MPs. [council] leaders and mayor [Andy] Burnham. This seems like a logical way forward.
“Automatically enroll those who qualify for Pension Credits. We will ensure that society’s least affluent have access to winter fuel payments and it will also likely save us a significant amount of money. The bureaucracy around the administration of Pension Credits.”
“Maybe the way I think about things is too simplistic. We put it in the mix as an idea and will continue to lobby and influence in this area.”
The Department for Work and Pensions (DWP) says it is not currently possible to accurately identify people who may be eligible for Pension Credit from DWP data alone. Like all means-tested benefits, a person’s eligibility for Pension Credit and the amount they are entitled to receive depends on their financial and personal household circumstances, which are often ‘complex’ according to the department.
Mr Dennett says he understands why the government has decided to cut funding, citing what the Chancellor says is a £22bn black hole in the public finances. But he is still ‘really worried’ that too many people will not apply for Pension Credit.
He said: “In the context of the shortage – and boy, do we know this in local government after 14 years of cuts – do I think millionaires should be getting their winter fuel payments now? Probably not.”
“Yes, I am committed and I love the idea of universality. It feels right to me.
“But at this point, do I think millionaires should be getting this money for winter fuel payments? Probably not.”
He added: “We think there are about 3,700 of us. [in Salford] Those eligible for Pension Credit who are not currently claiming. We have already written to people directly myself and asked them to contact benefits rights and debt advice if they cannot get through the application process as we think they are eligible. This is using our own data sets.”
A DWP spokesperson said: “To ensure Pension Credit is accessible to everyone, applications can be made online at gov.uk, by phone or via a paper application form. We would advise anyone interested in the paper application process to: claim online – service It is available 24/7, every day of the year and can be completed with a friend or relative – or over the phone, where the caller is guided through the request process.
“Our drive to increase Pension Credit uptake has already seen a 152 per cent increase in claims and we will continue to raise awareness of the benefit so every eligible retiree can get the financial support they deserve.”