A Dundee economics expert warns Labour’s controversial decision to cut winter fuel payments harms vulnerable pensioners – and it would be “politically smart” to U-turn.
Professor Morris Altman, a senior academic at Dundee University, delivered his verdict as Labour tries to assess defeat in two city by-elections, and considers the first 100 days of Keir Starmer’s premiership.
“It doesn’t make any economic sense,” he told The Courier.
“It’s not a good idea.”
Labour sources acknowledge they were “hammered” by the policy in the two council by-elections last week, including Lochee where they were considered favourites to win.
Prof Altman argues tax rises for richer pensioners would be a more effective way to bring in revenue than cutting winter fuel payments.
He says Labour’s decision to means-test the benefit puts elderly households, who are just missing out, at greater risk as energy bills are expected to rise.
“The government is picking on a relatively vulnerable segment of the population,” he said.
“Given the fact that the cost of fuel is anticipated to go up, there’s going to be some elderly people who will be priced out of the market, and might suffer.
“If the government wants to get money from the public, there are other ways of doing this.
“Who knows what went on in their minds when they came up with this.”
But if this policy really is so unpopular, why is Labour determined to push ahead with it?
‘Silly, inefficient, and politically damaging’
Labour Chancellor Rachel Reeves says it will help plug a £1.5 billion black hole.
She hopes it will be able to offset short-term economic pain by growing the economy in the long-term.
SNP activists said voters kept referencing the fuel payment cuts during the campaign before last week’s council by-elections.
“Maybe they want to show the general public they’re going to be tough financially,” Prof Altman said.
“But it’s a silly, inefficient, and politically damaging way to go about it.”
Prof Altman believes the best way to increase revenue is to grow the economy.
“If you increase income, you increase tax revenue by definition,” he added.
A UK Government spokesperson said millions of pensioners will benefit from rises in the state pension.
“We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,700 this Parliament through our commitment to the triple lock,” the spokesperson added.
“Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take up has already seen a 152% increase in claims.”
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