Basing Winter Fuel Payments on council tax banding “would not be possible”, a pensions minister has warned.
Pension minister Emma Reynolds was responding to a written question from Labour MP Rachel Maskell when she said banding based on property values may not accurately reflect incomes.
The Government has axed the universal winter fuel payment, which all pensioners used to receive regardless of their income, and replaced it with an allowance available to pensioners on means-tested benefits, including pension credit and universal credit.
Ms Reynolds vowed to “work with external partners, local authorities and the devolved governments to boost the take-up of pension credit” but declined to say how many pensioners she would like to see sign up, in response to a further written question from Democratic Unionist Party MP Gregory Campbell.
MPs voted 348 to 228 to cut the seasonal payment for all but the country’s poorest pensioners on Tuesday, rejecting a Conservative bid for the controversial policy to be blocked.
Ms Maskell did not take part in the vote.
Asked about her written question, she told the PA news agency: “I think there’s a solution in there that Government needs to explore, that may mean the Government may not need to take (their winter fuel payment plans) back to the House.”
The York Central MP said she was “sceptical” about a suggestion by Martin Lewis, MoneySavingExpert founder, that allowances could be linked with council tax bands A, B, C and D, representing some of the lowest value properties.
Mr Lewis described the proposal on X, formerly Twitter, as “an imperfect but workable proxy for lower household incomes”.
In response to the suggestion, Ms Reynolds told Ms Maskell that “it would not be possible to pay winter fuel payments to pensioners according to their council tax band as my department does not hold data on people’s council tax banding”.
The minister added: “Additionally, council tax band is not always an accurate reflection of someone’s income.
“Matters of taxation are for His Majesty’s Treasury.”
Ms Maskell also asked work and pensions ministers whether they would assess “the potential merits of establishing a fuel poverty prescription that can be given by GPs”.
Some local authorities have previously run prescription schemes, including in Nottinghamshire, where the Warm Homes on Prescription project “aims to help low income residents with cold-sensitive, long-term, health conditions to achieve affordable warmth”.
Ms Reynolds wrote: “This Government takes fuel poverty extremely seriously.
“The Government will invest an extra £6.6 billion over this Parliament in clean heat and energy efficiency through the Warm Homes Plan, upgrading five million homes through solutions like low carbon heating and improved insulation to reduce emissions and cut bills.”
The Labour minister added the Household Support Fund would end on March 31 2025, after the winter, with an additional £500 million “aimed at anyone who’s vulnerable or cannot pay for essentials”.
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