Originally Posted by
CTMilller
I do think the Labour government have miscalculated in choosing to cut the fuel allowance in the way it has been done.
It comes comes over almost as vindictive since it's one of the first (if not the first) demographic group to be singled out for austerity by the new government. It's been handled clumsily with very little done to explain what the effects are and Labour have thrown away a vast amount of goodwill by going this route.
Had it been part of a range of measures affecting other groups in the community it might at least have given the impression that many others are going to have to sacrifice something.
The amount recovered by the initiative is also arguably small relative to the backlash it has created.
Having said that, I would like to see how many are genuinely going to suffer real hardship as a result of this measure. The figures I've seen suggest that 62% of pensioners have a company pension in addition to the state benefit, one in five have assets in excess of one million pounds and pensioners have had real income growth of 21 to 39% in the last 20 years compared to a 10% increase for working people. Given that those on pension credit will continue to receive the fuel allowance, how many does that leave who will now be pushed into a state of genuine financial hardship as a result of the change?
Perhaps the bar to ineligibility should have been set at a higher level to safeguard those that will fall through the net? Basing it on a declared total pension level of x (varying for singles and married couples) might have been more acceptable.
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