Ministerial Statement on the future provision of Winter Fuel Payments in Northern Ireland.

Date published: 10 September 2024

And let us be clear, the restriction on these payments is directly and wholly the result of the decision taken by the Chancellor of the Exchequer. Winter Fuel Payments were introduced by a Labour Government in 1997 and successive governments, recognising its critical importance to pensioners, have kept it in place - until now.

This was a totally unexpected announcement from the new Government in Westminster. It was not mooted by the government before now, it was not part of their manifesto and indeed, only a few months ago when the Prime Minister was leader of the opposition, he said that the Winter Fuel Payment should be maintained. Therefore, it came as a surprise to us all, that the government would announce the removal of this important benefit and I can confirm that my department was given no prior notice of the planned change.

As members will be aware, the principle of parity, as reflected in Section 87 of the Northern Ireland Act 1998, generally means that social security benefits are paid at the same rates and with the same conditions of entitlement across the UK. Where parity is maintained then expenditure on pensions and social security benefits in Northern Ireland is funded, in full, by the UK Government. Any deviation from this principle of parity, that results in additional expenditure in Northern Ireland, must normally be paid from the Block Grant.

The estimated additional cost to the Block Grant of maintaining universal entitlement to a Winter Fuel Payment in Northern Ireland for Winter 2024/25 is £44.3 million and this does not even include any additional delivery or staffing costs.

In addition, it is estimated that an appropriate IT system to deliver universal Winter Fuel Payments in Northern Ireland could cost between £5 million to £8 million for development and a further 20% of the development spend per annum for support and maintenance.

Therefore, for the Executive to even consider breaking parity on this decision by the Labour Government would require significant cuts to Northern Ireland’s already struggling public services. To those who glibly say the Executive could have made a different decision, I would ask them what they would cut or what services would they postpone? It was simply not credible to claim that the Government have left the Executive with any other choice.

Let me repeat what I have already said a number of times since the Chancellor’s announcement, I strongly disagree with and am totally opposed to this decision.

I believe this decision is wrong. It is wrong because it will have serious consequences for the comfort, wellbeing, and health of older people across Northern Ireland.

It is wrong because it will put additional pressure on public services, which will face increased burdens due to the health implications it will cause for people.

And it is wrong, because in order to remove benefits from those who do not need them, those who are just above the threshold become collateral damage.

I have made clear to the Secretary of State for Work and Pensions my total opposition to this decision, and I have outlined the detrimental impact it will have on many people in Northern Ireland. I have raised this issue with other Ministers in the UK government and, as an Executive, we have written to the Prime Minister to express our grave concern.

Even at this late stage, I would urge the Government to reconsider. We are all aware of the incredibly difficult budget situation we find ourselves in. We have had to make choices in our departments that ordinarily we would not like to make, but this decision is wrong, and I hope the government will recognise that.

In the meantime, it is extremely important that people ensure that they are receiving all of the benefits they are entitled to. I would therefore encourage everyone to check their entitlement to Pension Credit at their earliest opportunity. This can be done by telephoning the Northern Ireland Pension Centre’s Pension Credit Application Line.

The Department’s unique Make the Call Wraparound Service puts people in touch with any benefits, supports and services to which they may be entitled, and I would also encourage people to get in touch with them.

Mr Speaker, I know that this is a worrying time for many who are concerned about how they will manage this winter. The Government have got this wrong and additional support will be required.

I have already asked Executive colleagues that any Barnet Consequentials for cost of living support this winter are ringfenced so that we can do whatever we can to ameliorate the worst consequences of this harmful UK government decision and I will keep the Assembly informed about how we can best help in this regard.

I commend this statement to the House.