MSP Kenneth Gibson has criticised the new Labour Government’s “continued austerity” following its announcement of a cut to the winter fuel payment which will affect over 27,000 constituents living in North Ayrshire.
UK Chancellor Rachel Reeves MP confirmed that the Winter Fuel Payment will no longer be available to all those over the pension age, reducing the number of people eligible from 11.4 million to 1.5 million across the UK.
According to Department of Work and Pension figures, only 10.8% of pensioners in North Ayrshire receive pension credit. North Ayrshire has 30,847 pensioners of whom 27,515 will each lose £200, with those over 80 losing £300.
Even at £200 each, this represents a collective loss of at least £5.5 million a year to North Ayrshire, SNP MSP Mr Gibson pointed out.
However, new North Ayrshire Labour MP Irene Campbell has defended the 'very difficult decision' taken by the UK Government, and explained it was a 'direct response' to the financial 'black hole' left by the previous government.
She said Labour was willing to work with the Scottish government to attempt to try and find a solution.
Mr Gibson, who represents Cunninghame North, said: "Despite previously Labour deputy leader in Scotland Jackie Baillie MSP saying that she would 'always fight to ensure this payment is protected', her leader in Scotland Anas Sarwar MSP is now backing this cut, which comes on top of a decision to tax state pensions from 2028.
“The SNP repeatedly warned that Labour’s damaging decision to copy Tory fiscal policies would mean around £18,000 million of cuts or tax rises. Labour flatly denied this and promised there would be no cuts.
"Our pensioners will now be some of the first to see what these promises were worth, as cuts and tax rises now look like £22,000million.
“The cost-of-living crisis means that pensioner-poverty affects far more than those who receive means-tested benefits like Pension Credit. Labour has applied this cut to a whopping 89.2 per cent of North Ayrshire pensioners who previously received from Winter Fuel Payments and who will now have to do without this winter.
“It also means an economic hit of at least £5.5 million locally, as struggling pensioner households have less to spend.
“Pensioners have for too long suffered under Westminster and that looks set to continue under a Labour Government, which must reverse its plans for imposing more austerity on our older citizens.”
Labour MP Irene Campbell, who represents the North Ayrshire and Arran constituency, said: "The measures announced by the Chancellor, including changing eligibility for Winter Fuel Payments, are a direct response to the £22bn black hole left by the Tory government. This was a very difficult decision taken by the UK government.
"I know that some low-income pensioners in North Ayrshire and Arran still aren’t getting Pension Credit and the UK government is increasing our work with external partners and local authorities to boost uptake and target additional support to the poorest pensioners.
"UK government estimates that Pension Credit uptake is around 63 per cent. It is vital that everyone in North Ayrshire who is eligible for Pension Credit is awarded Pension Credit and that the poorest pensioners are supported with the winter fuel payments.
"Mr Gibson will be aware that Winter Fuel Payments are becoming a devolved benefit this year, meaning Scotland will have the responsibility to decide how to target support for pensioners in Scotland.
"It is not yet known if the Scottish government will follow the UK government to make the Winter Fuel Payment a targeted payment.
"My understanding is that it will be called the Pension Age Winter Heating Payment and Scottish Labour is willing to work with the Scottish Government to look at all the options available going forward."
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