Cut to winter fuel allowance ‘totally unexpected’, MLAs told

NI will follow Westminster’s lead because it cannot afford to break parity with the rest of the UK, Communities Minister Gordon Lyons said.

A move to cut the winter fuel allowance for many pensioners was ‘totally unexpected’, MLAs at Stormont have been told (Yui Mok/PA) (PA Wire)

A move to cut the winter fuel allowance for many pensioners was “totally unexpected”, a Stormont minister has said.

Communities Minister Gordon Lyons told MLAs that Northern Ireland would follow Westminster’s lead because it could not afford to break parity with the rest of the UK.

However, Mr Lyons warned the cut will have “serious consequences” for the wellbeing of older people across Northern Ireland.

MPs voted 348 to 228 on Tuesday afternoon to axe the payment for all but the poorest pensioners, rejecting a Tory bid for the controversial policy to be blocked.

Stormont MLAs at Stormont had earlier debated the change, which it is estimated will impact about 249,000 pensioners in Northern Ireland.

Mr Lyons said: “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.”

The Communities Minister said the principle of parity means that social security benefits in Northern Ireland are paid at the same rates and with the same conditions of entitlement across the UK.

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

Gordon Lyons

He added: “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.”

He added: “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.”

Mr Lyons asked the Government to reconsider its cut to the allowance.