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Cutting Winter Fuel Payment harms older people and increases pressure on the NHS

Cutting Winter Fuel Payment harms older people and increases pressure on the NHS

The Office of Budget Responsibility estimates that the recent 2% cut in national insurance contributions in the run-up to the general election will cost an average of £10.3 billion per year over the next decade. Add to this the previous 2% cut in national insurance contributions (a few months earlier) and this would explain the government's reported £22 billion deficit in the public finances.

The previous government probably hoped to offset these ‘election gifts’ through growth, and in particular through the frozen tax-free allowance, which the Office of Budget Responsibility estimates would generate revenues of £35.7 billion by 2028/29.

Against this background, it seems extremely unfair and discriminatory to single out older pensioners, who have no earning potential or creditworthiness and do not benefit from the national insurance cuts but are affected by the tax-free allowance freeze, as the only group of people to have their gross income reduced. The loss of the winter heating allowance represents a reduction of £200-£300 in gross income.

Britain has one of the lowest state pensions in the developed world, sometimes defended (untenably) with extras such as winter heating allowance, free medicines and bus passes. Older pensioners recently lost their free TV licence and now their winter heating allowance too.

Not only will this exacerbate the hardship of older people – at a time when petrol prices are due to rise (not necessarily, but out of greed to make a profit), but given the link between income and demand in the healthcare system, it will also increase pressure on the NHS over the winter – at a time when the government has committed to reducing waiting times.

It is an absolute disgrace that 29 percent of children grow up in poverty – two-thirds of whom have a working parent – ​​and that many older people suffer from malnutrition or die of the cold in winter.

Growing income inequality and increasing poverty are the great social evils of our time. If the government does not address wage inequality, the hunt for foreign investment and the trickle-down theory of achieving growth will create millionaires and turn millionaires into billionaires, while creating low-paying jobs – thus widening income inequality.

* Chris Perry is a former Director of Social Services for South Glamorgan County Council, a former Director of Age Concern Hampshire, a former Non-Executive Director of Winchester and Eastleigh Healthcare NHS Trust and a former presenter of an award-winning public affairs show on Express FM.

Read more from Chris Perry or more about paying heating costs in winter.
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