Winter fuel payments in NI to become means tested

The communities minister has confirmed Stormont will be following Westminster's lead when it comes to winter fuel payments for pensioners.

Last month, the Chancellor Rachel Reeves announced the payments of up to £300 would become means tested in England and Wales, and would only be given to those on certain benefits.

In a written statement to the assembly, Gordon Lyons said while he did not agree with the move, Stormont would be maintaining parity with the rest of the UK.

"Regrettably there is no additional resource available in the budget to allow us to diverge from the UK Government decision," he said.

From this autumn, those not on pension credit or other means-tested benefits will no longer get the annual payments, worth between £100 and £300.

Section 87 of the Northern Ireland Act 1998 generally means that social security benefits are paid at the same rates and with the same conditions of entitlement across the UK.

Any deviation from this principle of parity that results in additional expenditure in Northern Ireland must normally be paid by central government in what is known as a block grant.

The Treasury block grant accounts for more than 90% of the funding used for the day-to-day operation of services in Northern Ireland. The rest is raised locally from property taxes and other charges.

"The estimated additional cost to the Block Grant of maintaining universal entitlement to a Winter Fuel Payment in Northern Ireland for Winter 2024/25 is £44.3 million," Mr Lyons said in a statement.

He said a letter signed by all Northern Ireland Ministers has been sent to the Prime Minister "voicing deep concerns and urging him to reconsider".

"I have made clear to the Secretary of State for Work and Pensions my total opposition to this decision and outlined the detrimental impact it will have on many people in Northern Ireland," Mr Lyons added.

How do winter fuel payments work and what's changing?
Winter fuel payments were created in 1997 to help everyone above state pension age with their winter heating bills

The chancellor announced that winter 2024 will be the first time pensioners will not be eligible for the payment

Instead, the payments will be restricted to those on benefits and pension credit

Pension credit is a form of means-tested benefit, which means it's based on income and savings

To be eligible for pension credit you need to be above state pension age and have an income of less that £218.15 a week or less than £332.95 as a joint weekly income with your partner

Your savings will also be taken into account and could mean you're still ineligible even if you're income is low

You may still be eligible despite these factors if you're disabled, care for someone or have housing costs

Health Minister Mike Nesbitt was asked about the decision to cut the payments while speaking at a press conference where he announced he would become the new UUP leader.

As a minister he was part the executive who signed off on the decision "very, very reluctantly." he said.

"Nobody was happy about that, it was a very reluctant decision by each and every member of the executive," Mr Nesbitt added.

SDLP MLA Mark H Durkan said the executive "had the power not to introduce this punitive and punishing measure in the North but didn't take it – now thousands of pensioners will suffer as a result."

He added the executive had "repeatedly shown themselves incapable of taking a decision and this is just the latest example.

"It will not be lost on people that after weeks of confusion and concern from our older community that this was announced," Mr Durkan continued.

People Before Profit MLA Gerry Carroll warned the minister this will "cause excess deaths amongst pensioners".

“This is a cruel and unforgivable attack on some of our most vulnerable,” he said.