New Labour MP writes to government suggesting changes to winter fuel payment cut

A new Labour MP has written to the government calling for a rethink on the means testing of the winter fuel payment, Sky News has learnt.

Chancellor Rachel Reeves announced last month that the universal payment to pensioners, worth between £100 and £300, would be restricted to just those who receive pension credit in a bid to save more than £1bn.

Concerns have been raised, however, that pensioners falling just outside the credit threshold could be left vulnerable.

Jessica Asato, who was only elected in July this year as the Labour MP for Lowestoft, has written to Work and Pensions Secretary Liz Kendall calling for changes to the policy.

Speaking on the Sky News Daily podcast, Sky News’ deputy political editor Sam Coates said: “We at Sky know that at least one Labour MP, Jessica Asato, has written to Liz Kendall to talk about how nervous they are about this policy.”

He said this was to “suggest bluntly that they change it”.

“I think what Jess Asato wants to do is to widen the number of people that can claim it.

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“She accepts that… it’s going to be taken away from some.

“But her concern is the kind of the people who just miss out – they aren’t exactly rich, but they don’t qualify for Pension Credit.

“And therefore that’s a big drop in their income at a point where, of course, the energy price cap is going to rise, so energy bills are going to rise this autumn.

“And so that is one of the reasons for particular concern.

“So she wants it to be given to people who apply for council tax reductions because they’re on a lower income, which would widen the number of people who qualify for it.”

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As political correspondent and Sky News Daily host Liz Bates pointed out, it is notable that a Labour MP is raising her displeasure so early in their parliamentary career.

It shows the government could have trouble with its parliamentary party when the House of Commons returns next week.

Ms Asato’s concerns are shared by Caroline Flint, who was a Labour MP between 1997 and 2019, and a minister in the New Labour years.

Ms Flint is now chair of the Fuel Poverty Committee.

Writing to Miatta Fahnbulleh, the minister for energy consumers, Ms Flint said: “We hope the department will examine whether there is a significant group of pensioners on low and fixed incomes outside the threshold chosen by the chancellor who may suffer genuine hardship. “Particularly, we would ask the government to consider the impact on those pensioner households with annual incomes above the Pension Credit threshold up to £18,200.

“There are also up to 880,000 households who currently do not claim Pension Credit and previous campaigns have not been successful in significantly boosting take up.”

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Ms Flint added that the biggest impact could be largest on women in single-occupancy homes.

Ms Asato said: “I did write last week, and I’m incredibly disappointed it’s been leaked as it was a private letter. Since then I have been reassured.

“The scale of the Tory inheritance is shocking and I – like many others – am furious with the Tories for forcing us into these tough decisions so early in the parliament.

“I have been reassured by the fact we are continuing to protect the triple lock which saw the state pension rise by over £800 last year and an above inflation pension increase will be announced at the budget – which obviously takes into account the cost of energy.

“I am confident this is the right course of action and recognise it is part of a package of tough decisions to come to provide economic stability, so we can all deliver for our constituents as Labour MPs.”

The Department for Work and Pensions have been approached for comment.

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