Agenda item

Notice of Motion from M.Mitchell under Standing Order No. 6

Meeting of Council, Tuesday 15th October 2024 6.00 pm (Item 71.)

PROTECTING EXETER’S PENSIONERS FROM FUEL POVERTY

Proposed by: Cllr Michael Mitchell

Exeter City Council notes the recent announcement by the Labour Government to end universal winter fuel payments and restrict eligibility to only those in receipt of Pension Credits and other benefits.

Though many suggest that universal Winter Fuel Payments are not necessary, this Council is deeply concerned that many pensioners on lower and middle incomes will now not receive the payments. Across England and Wales, the number of people eligible for winter fuel payments will fall by 10 million (from 11.4 million to only 1.5 million).

20,384 pensioners in Exeter received winter fuel payments in 2022/23. Under the new policy only 2,240 pensioners will receive the benefit this year. 18,144 Exeter pensioners will lose this benefit under the new rules.

Council believes that the Labour Government has set the threshold at which pensioners do not qualify for Winter Fuel Payments far too low. Those whose income is less than £218.15 a week (or £332.95 a week for couples) are eligible for pension credits. This is significantly lower than the living wage rate.

Council recognises the role we must play to increase awareness of benefits such as Pension Credit to ensure people are aware of the support they are entitled to.

Council further notes that the Energy Price Cap is due to rise by 10% in October, which combined by the removal of Winter Fuel Payments will push many local pensioners into fuel poverty.

Council resolves to:

· Instruct the Leader of the Council and other Group Leaders to write to the Chancellor of the Exchequer calling for the policy of linking Winter Fuel Payments to Pension Credit receipt to be immediately paused and to introduce a new threshold to determine eligibility for Winter Fuel Payments.

· Council further requests the Leader of the Council and other Group Leaders to write to both MPs representing Exeter asking them to give their formal support to halting the proposed changes to the Winter Fuel Payment eligibility.

· Urgently commence a significant awareness campaign to maximise uptake of pension credits and other benefits. This will include use of council noticeboards, social media, promotion in the local press and working with organisations such as Citizens Advice, Age UK and others.

Source: ALDC - Association of Liberal Democrat Councillors

Minutes:

Councillor M Mitchell moved and was seconded by Councillor Palmer a Notice of Motion in the following terms:-

Council recognises the role we must play to increase awareness of benefits such as Pension Credit to ensure people are aware of the support they are entitled to.

Council further notes that the Energy Price Cap is due to rise by 10% in October, which combined by the removal of Winter Fuel Payments will push many local pensioners into fuel poverty.

Council resolves to:

· further requests the Leader of the Council and other Group Leaders to write to both MPs representing Exeter asking them to give their formal support to halting the proposed changes to the Winter Fuel Payment eligibility.

In presenting his motion Councillor Mitchell made the following points:-

· that over 18,000 pensioners in Exeter would lose out;

· that only 2,240 would receive the allowance; and

· that whilst some have asset wealth he is concerned about the impact on some of those most vulnerable in the community.

Councillor Asvachin proposed, seconded by Councillor Pole, an amendment in the following terms:-

“Exeter City Council notes that the last Conservative government wrecked our economy, leaving a £22bn black hole in the public finances. They made commitments they couldn’t pay for, as reported by the OBR.

The Labour government will protect the triple lock on pensions, which saw the new state Pension rise by £900 in April this year. A further increase in the region of £460 per annum will be announced at the Budget in October.

Exeter City Council notes the recent announcement by the Labour Government to revise universal winter fuel payments and restrict eligibility to only those in receipt of Pension Credits and other benefits.

Council is concerned that many pensioners on lower and middle incomes will now not receive the payments. Across England and Wales, the number of people eligible for winter fuel payments will fall by 10 million (from 11.4 million to only 1.5 million).

20,384 pensioners in Exeter received winter fuel payments in 2022/23. Under the revised policy only 2,240 pensioners will receive the benefit this year. During the last Labour government over 500,000 pensioners were lifted out of poverty, and since then a further 200,000 are now in poverty.

Council is also concerned by the low take up of pension credit with only 63% of those eligible nationwide receiving pension credit, currently over 880,000 eligible pensioners do not receive this benefit across England & Wales. This Council is and are absolutely determined to do everything possible to protect the poorest pensioners, and to increase the uptake of pension credit which the Conservative government failed to do for more than a decade. The Labour government is also supporting pensioners through their Warm Homes plan, supporting investment in insulation and low carbon heating upgrading homes over the course of this parliament.

Council recognises the role to increase awareness of benefits such as Pension Credit to ensure people are aware of the support they are entitled to. Council is absolutely committed to supporting the most vulnerable pensioners – Pension Credit tops up the income of our lower income pensioners and getting Pension Credit could mean automatically getting a Winter Fuel Payment. This would be £200 for eligible households or £300 for eligible households with someone aged over 80s.The new HSF6 fund has now opened and will bring £5,064.876.12 for use across Devon, with £440,000.00 allocated to Energy Relief across the county and £2,816,454.60 to District Councils. The allocation to Exeter will remain similar to the previous allocation.

Council resolves to:

· Instruct the Leader of the Council and Chief Executive write to the Chancellor of the Exchequer to request a review into the threshold for Pension Credit, which would assess whether it is set at the right level and if not to support a rise in the threshold to encompass more pensioners who are receipt of lower incomes; and to encourage government to develop an action to tackle pensioner poverty.

· The Leader and Chief Executive to write to both MPs representing Exeter asking them to give their formal support to this approach.

· The Council will continue their awareness campaign to maximise uptake of pension credits and other benefits and promote applications to the HSF6 fund.”

Councillor Mitchell raised a point of order under Standing Order 10(6)e to which the Monitoring Officer clarified that the amendment did not negate the motion.

In presenting the amendment Councillor Asvachin made the following points:

· that a safety net was needed for those who would just miss out;

· that some did not need the allowance; and

· that it was important to pause and review.

During debate Members’ made the following points:-

· that universal provision was not a good system;

· that thresholds must be revisited;

· that long forms were not good; and

· that the triple lock would protect.

Councillor Palmer as seconder of the original motion, made the following points:-

· that pension credit take up was only 63%

· that letters to encourage did not work for all;

· that two of every five excess deaths were caused by heart attack which was exacerbated by cold; and

· that many took to bed by 4pm due to cold.

A Member during debate felt that those eligible for Pension Credit may not be the poorest, rather those a few pounds above the threshold and that there had been no adjustment time or impact assessment. The intention to improve take up had been tried with little improvement.

Councillor Pole as seconder spoke in support of the amendment stating that Government had to protect the country’s finances but had seen the biggest increase in Pension Credit take-up.

In summing up Councillor Asvachin stated that this was an emotive subject and thanked everyone for speaking and that all clearly wanted to help those most vulnerable residents.

Councillor Mitchell, as the mover of the original motion, thanked everyone for their contribution, stated that the motion was about an injustice which needed to change and in summing up made the following points:-

· that the two-tier pension system was complex;

· that pensions were due to increase by 4% next April yet energy prices by 10% now;

· that he offered thanks to the government for increasing HSF6 funding which last year helped 2100 households yet only 14% were low income pensioners; and

· that the motion called for immediate pausing of the new Winter Fuel Payment scheme and introduction of new thresholds.

Councillor M Mitchell called for a roll call vote on the amendment, which was supported by Councillors Bialyk, Wood, Vizard, Palmer, Fullam, Rees and Read.

In accordance with Standing Order 30, a named vote on the amendment, was recorded, as follows:-

Voting for:-

Councillors Allcock, Asvachin, Atkinson, Bialyk, Ellis-Jones, Foale, Harding, Hussain, Knott, Miller-Boam, Parkhouse, Patrick, Pole, Rolstone, Snow, Vizard, Wardle, Williams, M, Williams, R, Wood and Wright

(21 Members)

Voting against:-

Councillors Banyard, Bennett, Fullam, Haigh, Holland, Jobson, Ketchin, Mitchell, M, Moore, Palmer, Read, Rees and Sheridan

(13 Members)

Abstain:-

The Lord Mayor

(1 Members)

Absent:-

Councillors Begley, Darling, Hughes and Wetenhall.

(4 Members)

Following a vote the amendment was CARRIED and became the substantive motion.

Councillor Moore, seconded by Councillor Read proposed an amendment to the motion in the following terms:

“Request the process to apply for Pension Credit is simplified” and the addition of

“that winter fuel payments to all pensioners continue until” within the first bullet point of the resolution contained in the motion.

Councillor Moore in presenting the amendment referring to an earlier debate and aimed to build consensus at a time when finances were challenging.

During the debate, a Member noted that unpaid carers must be considered.

Following a vote, the amendment was NOT CARRIED.

Councillor Knott, seconded by Councillor Patrick proposed an amendment to the motion in the following terms:

“to request that the process to apply for Pension Credit be simplified”

Following a vote the amendment was CARRIED and added to the motion to become the substantive motion.

Councillor Palmer, seconded by Councillor Moore, proposed an amendment in the following terms:

To “ensure that older carers are considered specifically in the review” be added at the end of the first paragraph to read:

“Instruct the Leader of the Council and Chief Executive write to the Chancellor of the Exchequer to request a review into the threshold for Pension Credit, which would assess whether it is set at the right level and if not to support a rise in the threshold to encompass more pensioners who are receipt of lower incomes; and to encourage government to develop an action to tackle pensioner poverty and ensure that older carers are considered specifically in the review”.

Following a vote, the amendment was carried, incorporated within the substantive motion.

Following a vote on the substantive motion as amended, the motion was CARRIED as amended.