Report from the Skegness CPF Group meeting held on Thursday, February 6, 2025

Winter Fuel Allowance/Sustainable Retirement Incomes

Our group opposes the Government's decision to means test winter fuel payments. However, we suggest that instead of reinstating the allowance to the previous position the Government should add an equivalent amount of money to the State Pension. This would make it less vulnerable to future cuts. Pensioners would be able to plan ahead. For example, those reliant on oil or coal would be able to buy stocks in when the prices were at their most affordable.

We support the retention of the Triple Lock as it provides an important safety net for pensioners when they retire. It is morally right for the State to protect its older citizens. We would oppose means testing of the State Pension, as this would be a disincentive for people to save money for their old age. Pension credit is already means tested and we are against extending that principle further. Richer people who have a lesser need for the State Pension will already be paying more in taxes.

We propose the introduction of an integrated transport card for OAPs, which can be used to provide concessions for trains and taxis as well as buses. This would be particularly useful in a rural area such as ours where public transport services are limited.

The group notes that auto enrolling into work pension schemes has been successful in increasing the number of people entering those schemes. We would go further and make auto enrollment compulsory as soon as someone starts to pay National Insurance Contributions. We recognise the demographic changes which lead to fewer working age people paying for the pensions of a growing number of retired people. Making enrollment compulsory would help the State to bridge the growing gap financially.

Young people need to have greater awareness of the need to save for their retirement as early as possible. Education has an important role to play to enhance that awareness. Our group has previously called for more financial education in schools and further education establishments. We also think it would be useful for OAPs to take part in the education process alongside young people, so that the different generations have a greater understanding of each others' needs.

The qualifying years of work for people to obtain the full State Pension should be increased to between 42 and 47 years.

The pension age should remain at 67 until such time as it can be shown that circumstances have changed to justify raising it.

Generally, there should be greater recognition of the difficulties faced by pensioners. The Government should do all it can to reduce the cost of living, especially in such areas as food and energy prices. It is vital for OAPs to have a nutritional weekly basket of food at affordable prices. There is no justification for electricity prices being so much more expensive than gas prices. Where expensive heat pumps need to be installed, householders should be able to stagger the payments, with any debts carried forward to the next householder if the property is sold on.

Although we strongly support a good level of pension provision for the elderly, we accept that there is the danger of a generational divide, with young working people having to bear the additional costs of pensions while at the same time facing financial burdens in other areas. To help redress this, we suggest that the student loans system is abolished and that the system should revert back to the payment of grants. However, to mitigate the cost of this to the State, we believe fewer young people should go to university. There should be more "training on the job", including more apprenticeships. We support schemes where people have access to university education through their employers funding them to achieve necessary qualifications. To help young people to get on to the housing ladder there should be an extension of shared ownership schemes. Also, those who can prove that they have paid rent for a reasonable period of time at a level in excess of what their mortgage payments would be should be eligible to obtain mortgages even if they have not necessarily saved enough for a full deposit