There has been speculation that Labour’s losses to Reform in the local council elections may have been partly driven by its decision to withdraw the winter fuel allowance from all but the poorest of pensioners.
Steven Cameron, Pensions Director at Aegon comments: The Labour Government will have a lot to think about after the success of Reform in the local elections. Drivers of the Government’s policy decisions to date have been economic growth and plugging the ‘black hole’ it claimed it inherited. Now, even though very early in its parliamentary term, Labour will be concerned about their prospects in the next general election.
“It appears that the ‘grey vote’ has once again shown how powerful it can be, with the withdrawal of the winter fuel allowance from all but the least wealthy of pensioners being cited as helping Reform win at local council elections. The government has put boosting economic growth as its number one priority. The Spring Statement making no less than 13 references to supporting ‘working people’, but failed to mention any support for pensioners.
“While the Government can point to its commitment to retain the state pension triple lock for this parliamentary term, this may not be enough to win the votes of pensioners in the next general election. While we may be well into Spring, last year’s loss of the winter fuel allowance has clearly not been forgotten or forgiven, and the Government may need to do more to prove its credentials in supporting pensioners as well as workers. If there is to be a rethink, we’d urge the Government to look in the round at not just winter fuel allowance eligibility but also the future direction and affordability of state pensions under the triple lock. There’s also a need to face up to the likelihood that in the next two or three years, someone relying solely on the full new state pension might find this rises above the personal allowance, making them subject to income tax. Today’s workers are tomorrow’s pensioners and it’s important that all Government policies – as well as promises from other political parties - are looked at through a lens of intergenerational fairness.”
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