The Winter Fuel Allowance is indefensible
Ed Howker 6:24pm
Freed from the shackles of elected office, Steve Norris remains an electrifying speaker.
He is also refreshingly honest. So, when I met the 66-year-old former mayoral candidate at a Tory conference fringe on the future of London, he was only too happy to admit how spent his Winter Fuel
Allowance: "I'm amazed by the Chancellor's annual gift. I spend it on Claret," he said. In fact, he said that when paid to the wealthy, the allowance is "a complete waste of
money" and "a bribe to older voters".
I mention this only because the Allowance was referred to again in a different context this week: during David Cameron's own address. Just take a look at the following passage:
‘You think about tuition fees, and house prices, the cost of a deposit, and wonder how our children will cope. Of course, government can help – and this one is. We have cut petrol duty, kept the winter fuel allowance and kept cold weather payments.’
The excerpt is taken from the 'anxiety' section of the Prime Minister's speech in which he attempted to echo the deepest fears of voters and then allay them. As James Forsyth reveals in the current issue of The Spectator (subscribers here), when chief political strategist, Andrew Cooper, arrived in Downing Street he told the Prime Minister that "voters’ greatest concern was that their children wouldn’t have the opportunities they’d had". And, sure enough, Cabinet ministers' conference speeches have been peppered with references to “future generations” and “intergenerational issues” — as you can see, David Cameron's was no different.
But look again at the excerpt and you might perceive a problem with it. The anxieties the Prime Minister identifies affect younger people in British society, but the solutions he suggests really aren't relevant. Neither cold weather payments nor petrol duty changes affect the life chances of young adults and children in particular. The reference to the Winter Fuel Allowance is even more bizarre since it is aimed not at children or even parents but squarely at the older section of society — you qualify for it when you turn 60. And Steve Norris has good reason to think it a colossal waste of public money.
The Allowance is a universal benefit costing around £2.7 billion designed to address the problem that every year excessive numbers of elderly citizens die in the cold. It will be worth about £200 for households aged over 60 and £300 for households over 80 this winter. A huge chunk of that money never gets to the vulnerable, however. Instead, it is handed to a swathe of recipients who really don't need it, like Steve Norris — who also happens to be Chairman of Jarvis PLC these days.
Two-thirds of the members of the House of Lords receive the benefit also. And, last year about 65,000 ex-pats living across Europe including in Spain, Italy and Greece received it even though the weather is obviously warmer where they live. This year, Pensions minister Steve Webb confirmed in Parliament that EU law prevented Britain from withdrawing ex-pat access to the Winter Fuel Allowance.
And all this must seem iniquitous to those sections of society about whom David Cameron claims to be 'anxious'. Younger generations are paying more for housing, more for university education and are more likely to be unemployed than any other section of society of working age today. The Prime Minister obviously didn't do justice to their concerns and those of their parents by nodding at their problems and then offering a smorgasbord of irrelevant spending decisions as evidence that he is helping. In fact, he looked cynical. If David Cameron wanted to help future generations he would means-test the Winter Fuel Allowance, not defend it. Right now it doesn't help "children to cope"; it helps Steve Norris to drink Claret.



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Sally Chatterjee
October 6th, 2011 6:39pm Report this commentWell said. This looks like another of Gordon Brown's gimmicks to bribe voters and make them feel dependent on the welfare state, where even the wealthy are fleeced with one hand whilst the other gives them money back. Time for this government to make amends for Labour's waste.
Rhoda Klapp
October 6th, 2011 6:40pm Report this commentI get it, and it is indefensible as long as I have a job.
The thing about the younger generations is, what is necessary and sufficient to fix it is to fix the economy. And allow Britons to benefit from it, don't run it for multi-nationals who do not care about this country more than any other, or for lobbyists or pressure groups, or the EU or anybody else. Cheap energy might be a good start. Then you wouldn't need to give out einter fuel allowance.
Captain Christy
October 6th, 2011 6:41pm Report this commentI use mine as my deposit for the annual pub trip to York races.
Boudicca
October 6th, 2011 6:48pm Report this commentPerhaps Cameron could create a voluntary 'Pay back your winter fuel allowance' facility so that people, such as Seve Norris could return the money to the Treasury if they don't need it. If the returned money went into a ring-fenced fund it could be used to insulate elderly peoples' homes or perhaps be donated to a charity such as Help the Aged.
Mr Norris should really be ashamed of himself for keeping the money and pouring it down his neck.
James Barton
October 6th, 2011 6:57pm Report this commentMeans tested benefits are unfair and ensure that those who have not bothered to save for their retirement get given everything for free; whilst those who have gone without in an effort to save are punished.
Yosemite Sam
October 6th, 2011 7:39pm Report this commentI declare an interest: I receive this allowance. I do not need it, but it arrives in my account (and my wifes) with annual regularity. It is a perfect example of a poorly targetted universal benefit. However, a promise was made to keep it - but no promise was made to keep it tax free. I suggest that it become taxable, at least it would reduce the cost without breaking the promise. By the same token, the decision to remove child benefit from those earning more than £40K should be replaced by a policy of taxing child benefit at all levels of income. All non taxable benefits should become taxable, this should not affect the poorest because the threshold is to be raised to £10K in this parliament.
Dearneraider
October 6th, 2011 7:42pm Report this commentMeans test the bus pass whilst you're at it . In some places the bus pass also entitles people to free travel on the Railways, so you have people between 60 and 65 who are in full time work paying good wages who are subsidised by the tax oayer to travel free on the trains.
Hexhamgeezer
October 6th, 2011 7:48pm Report this commentIf the enviroloons dont hamstring shale gas production we we could soon ditch the WFA.
DeeJay
October 6th, 2011 7:48pm Report this commentMy neighbour, who uses her Winter Fuel allowance judiciously, manages to make it stretch out over 12 months!
She claims to vote Labour and still enjoys the cut and thrust of the political debate. But, although she is certainly lucid, I am pretty sure she will not recall anything about 'Shagger' Norris or indeed the last LibDem candidate for London mayor.
Barry Bilge
October 6th, 2011 8:20pm Report this commentHere we have a conundrum; people 60+ who don't need the allowance still get it versus the moral hazard of means tested benefits subsidising those who won't help themselves.(and the cost of administering that means testing)
Of course the best answer is not to weigh up the pros and cons of each position as if they are in competition with each other. They aren't. The problem is energy prices being driven higher and higher by crackpot answers to man made climate change such as wind turbines.
Lower energy prices would benefit young and old alike, would sidestep the issue of WFA going to expats, would be a shot in the arm of the productive part of the economy and wouldn't require going through the corrupt money washing machine that is Government.
Cynic
October 6th, 2011 8:41pm Report this commentI get the winter fuel allowance and guess what? It goes towards buying my winter fuel - which has gone up 15% since last year, incidentally. I am officially in fuel poverty, but since I've got savings (devaluing faster every day thanks to QE2), I doubt I'd get the allowance if means testing were instituted. Surely we've had enough of penalising the prudent to reward the feckless and "couldn't be bothered" mob?
Augustus
October 6th, 2011 8:47pm Report this commentBoudicca -
October 6th, 2011 6:48pm
Good point!
JustMe
October 6th, 2011 9:43pm Report this commentMy dad is a ex-miner so gets free coal.... and of course a free winter fuel allowance :)
Double yer money!
Dimoto
October 6th, 2011 9:50pm Report this commentHowker says that Cameron has picked up on the worry that parents have for their children's prospects.
From there, he has jumped to the presumption that everything the government does must be targeted at freebees and favours for the "young".
Total non sequitur.
I regard the WFA as a small token gesture, to acknowledge the vast amount of money savers (overwhelmingly the senior citizens), have lost in the devaluation of their lifetime savings, to save the economy.
It is the seniors who have born the brunt of the financial crisis.
Howker has evidently been reading Willett's garbage about "theft between the generations".
We can't take it with us you know.
The "bank of mum and dad" keeps half of the "youth" of this country solvent.
The exchequer will tax the residue yet again in due course.
If the seniors had not earned well, and saved well, the country would be bankrupt.
"Youth" should stop feeling sorry for themselves, get their heads down and WORK, (at least as far as their criminally deficient education allows).
The globalised world has become much more competitive.
The structure of firms has become much flatter with a preponderance of lowly paid, dead-end jobs.
To blame these secular changes on "the greedy generation" is obtuse, daft and vindictive.
ButcombeMan
October 6th, 2011 10:09pm Report this commentTh allowance and especially the way it is paid (which is grossly expensive & wasteful of civil service resources) is ridiculous and was certainly a part of Brown's plan to create a client state. The administration, especially set-up costs, are astonishing.
Yet fuel poverty is an increasing problem, particularly in the countryside where it is much colder than in towns and cities.
One simple solution to the winter fuel payment would be to consolidate it into the national old age pension & pay it in two tranches, one chunk at the end of October the other at the end of February.
This would be MUCH cheaper than the current method and it would be subject to income tax.
Mine goes to charity.
FordPrefect
October 6th, 2011 10:20pm Report this commentI have paid so much in tax that I'm happy to receive it. A rebate on my tax contribution to Iraq and Afgan wars and the many other wasteful Govt programmes.
REPay
October 6th, 2011 10:30pm Report this commentThe disgraced and disgraceful vote grubber and money waster Brown was very clever in the ways in which he ingrained wasteful spending...in a way that costs a phenomenal amount to administer. I would like to see a supertax of 80% on all pensions funded by the state over the value of 60k!!
Occasional Ostrich
October 6th, 2011 11:23pm Report this commentWhen my wife looks at it on her bank statement, it appears to come from the same pot as her pension. So she has alwas thought of it simply as deferred pension, for Xmas shopping.
xenophon
October 6th, 2011 11:28pm Report this commentIt doesn't work as a bribe for older voters once it's in place. It works as a constraint on government which dare not take it away for fear of the outrage that would ensue.
However, it appears http://www.direct.gov.uk/en/Pensionsandretirementplanning/Benefits/BenefitsInRetirement/DG_198331 that the qualification age is being incremented gradually. I shall have to wait until I'm 62: and I don't know how I survived the last winter.
escapedRoger
October 6th, 2011 11:56pm Report this comment£200 will buy me enough logs to heat a small house for 4 months, the temperature outside can often get down to -20C, nice and cosy when i've been out skiing and get back to a lovely log fire. The sterling rate against the KM (Bosnia Mark) has gone down 25% since the government helps it to slide and i will get less logs this year than last. Have to get the chainsaw out.
In2minds
October 7th, 2011 12:07am Report this comment"The Winter Fuel Allowance is indefensible" - Yes it is, but then so is the energy policy of the coalition.
Frank Sutton
October 7th, 2011 12:50am Report this commentDeejay writes: "My neighbour, who uses her Winter Fuel allowance judiciously, manages to make it stretch out over 12 months!"
Given that you can spend your winter fuel allowance as you please - it's a cash payment - I don't understand this.
Unless, of course, it's your neighbour's only source of income.
Equally, how does Steve Norris know that the £200 he spends on claret is the same £200 he gets as Winter fuel allowance?
Is he saying that his wine cellar would be a few cases short without it?
TomTom
October 7th, 2011 5:32am Report this commentSo abolish the WFP and at the same time CUT fuel costs by 30% by having price regulation as in Germany and the USA. It is outrageous that German and French companies have laissez-faire in Britain but price controls in their home markets.
It gets significantly colder and darker the further North you go in Britain which is more northerly than most parts of the EU
Ian Walker
October 7th, 2011 7:54am Report this commentJames Barton: "Means tested benefits are unfair"
That is true only if the testing is inaccurate. Otherwise they are eminently fair.
The rest of your post goes on to suggest that someone who worked a long life in an honest low-paid job should freeze to death because they didn't have the gumption to be a solicitor from Sussex.
Bill (Scotland)
October 7th, 2011 8:04am Report this commentWhilst I don't disagree with your analysis, I would point out that precisely the same analysis could be applied to Child Benefit, 'swathes of which' (to use your phrase) goes to well-off parents who really do not need it.
The latest bout of QE announced yesterday (complete madness of course, just like the earlier QE 3 years ago) is another kind of political bribe, which will keep interest rates low and benefit mortgage-holders, once more leaving savers high and dry - translated into the vernacular, Sir Mervyn King's comments about this amounted to 'suck it up'.
Frankly your attempt at a bit of unsubtle older-generation bashing is pretty unpleasant. My basic belief is that most benefits should go, universal and 'means tested' alike, with the government getting out of the way and allowing people to do their own thing. As for the bloated NHS I'd reduce it to at most a basic health clinic service. That would really focus people's attention.
What this whole economic crisis boils down to is that western countries (in this context includes north America, most of Europe and Japan) need to accept a drastic reduction in their living standards as their economies no longer produce the net income to justify their (i.e. our) comfortable lifestyles.
Governments in democracies cannot of course state that quite so bluntly to their electorates - so we have all these benefits paid out of [yet more] borrowed money and artificially-low interest rates to keep indebted voters complaisant in the madness.
Hard Heartless Perry
October 7th, 2011 8:06am Report this commentThank you Dimoto and others of like sentiment.
Douglas Carter
October 7th, 2011 8:49am Report this commentPerhaps Mr. Cameron might win a wee bit of applause if he took the opportunity to slate the fool who put VAT on fuel fifteen years ago.
I'm certain he'd get full Cabinet backing.
Chris lancashire
October 7th, 2011 9:33am Report this commentAlong with the 50p rate another of Brown's elephant traps. WFA is a complete joke and should be scrapped but there is no way Cameron can - remember "Thatcher, Milk Snatcher"? This would be the easiest of bricks for Labour to throw at Cameron.
Ways out? Either let it wither through inflation or scrap it and put the same amount on the State Pension - that way it will cease to apply from 60 and be subject to tax.
Brown has so much to answer for.
Occasional Ostrich
October 7th, 2011 10:11am Report this commentChris lancashire 9:33am
"Wither through inflation"
Well, a lot of the payments made by this so-called 'welfare state' need to be allowed to wither. Trouble is, eventually they get to the stage that the cost of civil servants administering them becomes such a large part of the whole pot from which the payments are made that they have to be sacked (sorry - redeployed), at which point you may be sure that said 'civil' servants will protest in such a way as to make sure the issue gets maximum exposure. Whichever government dares to grasp the nettle is going to get badly stung. (that'll be a Conservative government, then; any other would lack the courage.)
Mycroft
October 7th, 2011 10:30am Report this commentIt also means a great deal to many cash-strapped pensioners, and someone like Norris, who can afford to joke about it, perhaps does not full appreciate that; to remove it would send a most unfortunate signal, and Cameron is far too canny to do so.
toni
October 7th, 2011 11:06am Report this commentBoudicca. An excellent pay back plan and pour encourager les autres a list of these generous benefactors should be published in the national press.
John Norwich
October 7th, 2011 11:10am Report this commentChris lancashire to me has the best answer in that it shoulbe incorporated into the state pension thereby becoming taxable to those who dont need it,to take it away from people who are surviving on some of the worst state pensions in Europe (to our enormous shame) this would be with the enormous rise in fuel prices tantamount to a choice of keeping warm or eating ,still as long as "cast iron Dave" can give away billions to assorted world despots and according to him ,dont mind ,i'm sure all will be well.
Fuel poverty is very real already,last year here in a rural area where oil is the main heating fuel ,we had an enormous price rise in the space of 2-3 weeks ,over 50% ,when i ordered mine ,and remember with oil you pay up front,the company i deal with told me that they had several people who after finding out the price could not afford to order thereby resorting to very expensive electric fires and immersion heaters whilst the boiler was off.
Ricky
October 7th, 2011 11:22am Report this commentThe Miliband Bruvvers Grim along with Eddie Balls & Gordon Brown Stuff were entirely culpable in raising the costs of fuel and energy by not building nuclear powers stations and by buying into the tax hungry greedfest known as the AGW myth. The Winter Fuel Allowance covered this fraud up. Now Eddie wants us to believe he will go after the providers, following a decade of double VAT fuel.
Similarly, The National Socialist Workers Party also built no new prisons whilst in office and now bleat on about rising crime, despite cash for Honours and double flipping by certain former Ministerial role models.
National Socialists are the political Skinnerians who base their policies on a loathing of human beings, believing that people can be fined, bribed or paid to behave. Ratamorphics all.
E O Anthropus
October 7th, 2011 11:22am Report this commentNo he shouldn't. What he should do is use a bit of thick sense, scrap every job-creating scheme benefit, credit or allowance paid to those who work, cut tax according and allow us to spend our money on what we want to spend it.
Boyders
October 7th, 2011 11:25am Report this commentClaret is a very sensible winter fuel and probably cheaper than oil.
TomTom
October 7th, 2011 11:31am Report this comment"From there, he has jumped to the presumption that everything the government does must be targeted at freebees and favours for the "young".
Total non sequitur."
Ed Howker is Co-Author of The Jilted Generation and feels the Old have cheated the Young. It is generational politics.....
Patricia
October 7th, 2011 11:34am Report this commentI've paid tax for 40 years and seen it go towards benefits for the children of "economic migrants" living in their homeland, housing allowance for other "economic migrants" and of course our own special brand of wasters who have never heard an alarm clock go off in their lives. My fuel allowance will go on some kinky boots (to keep my feet warm, of course).
alexsandr
October 7th, 2011 11:39am Report this commentroll it into means tested pension credit. That already has the meanstesting procedures, it would be a matter of changing the numbers.
That would stop it going to the wealthy elderly, and remove a whole set of administrators
Occasional Ostrich
October 7th, 2011 12:08pm Report this commentalexsandr 11:39am
Fair enough, Alexsandr, I'll buy that.
WetherspoonThree
October 7th, 2011 2:29pm Report this commentI should like to nominate Malcolm Wicks, Labour Croydon North, as the most useless minister since say..1945. His period as Energy Minister seems to have been catastrophic for both the consumer and the industry.
I regret to say the coalition do not appear to have made many improvements since the last election and I am left wondering whether nationalization is the only sensible answer. (I never thought I would be advocating public ownership but clearly, Ofgem is unfit for purpose and the government seems paralysed where energy supply is concerned).
So until these matters have been resolved and this country has cogent energy policy its seems churlish to debate the merits or otherwise of the Winter Fuel Allowance.
In2minds
October 7th, 2011 3:44pm Report this comment"The Winter Fuel Allowance is indefensible" - Just like the coalitions energy policy!
Jimminy Wicket
October 7th, 2011 5:51pm Report this commentI would agree Steve Norris does not need the winter fuel allowance just as he probably does not need his bus pass, but does that mean that the majority of elderly whose income is just above the means tested level should go without?
Bear in mind the elderly are suffering the hardest during this downturn, their pensions swallowed up by rising cost, and their hard earned lifetime savings dwindling due to low interest rates and not a hope of replenishing them.
Steve Norris probably has no need to keep the temperature of his home as high as the aged and infirm does, nor would he be placed in the position of a choice between heating and eating, most that make that choice are not always eligible for benefits. It is a true old saying the selfish half of this Country does not know or want to know how the other half live.
DeeJay
October 7th, 2011 6:34pm Report this commentDear Frank @ 12.50am
I suspect my neighbour is on the higher rate for her Winter Fuel Allowance(now reduced to £300) and that she doesn't fiddle with the thermostat until she notices a significant amount of ice on the inside of her windows.
Older readers will be familiar with this phenomenon and the desire to live frugally and not to squander our resources.
rosemary leader
October 8th, 2011 11:25am Report this commentThere are many people who just fall short of getting pension credit who rely on the fuel allowance to enable them to heat their houses. This is real need and the person who boasted they spent theirs on claret ought to be ashamed. It would have been far more dignified if they had said as they did not need it that they had donated it to a childrens hospice or similar. Perhaps they would like to reflect on this.
Graham Wilkins
October 10th, 2011 12:15pm Report this commentI'm going to spend mine on logs for my wood burning stove and for paying the gas bill. What else?
Sunny Ex-pat
October 10th, 2011 12:17pm Report this commentI'll probably spend mine sitting in the Spanish sun drinking beer at the beach bar.
Richard Withering
October 10th, 2011 1:12pm Report this commentI was toying with the idea of spending my £200 on some viagra and a high class escort.
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