The Labour Party’s annual conference is concluding today with a crucial vote on a controversial decision: the scrapping of the winter fuel payment for most pensioners. The move, described as ‘cruel’ by critics, would leave 9.9 million pensioners without the £300 top-up to help pay their heating bills, leaving just 1.5 million eligible. Despite the potential hardship, Health Secretary Wes Streeting insists pensioners will be better off this winter compared to last, even without the payment.
Unions, however, are strongly opposed to the cut and have submitted a motion calling for its reversal. The motion, put forward by Unite and the Communication Workers Union (CWU), also advocates for means testing for the payment, an end to fiscal rules that limit borrowing for investment, and the introduction of a wealth tax. Unite general secretary Sharon Graham criticizes the cut, stating, ‘The first thing Labour does is to take away the winter fuel allowance from the poorest in our society while they leave the wealthiest people pretty much untouched.’
The debate over the winter fuel payment coincides with a concerning trend in the UK: the closure of bank branches. New figures from Which? reveal that over 6,161 branches have closed permanently since 2015, representing over 62% of the banking network. This closure has particularly impacted regions like Yorkshire and the Humber and the East Midlands, leaving them with the fewest branches per 100,000 people. In contrast, Scotland boasts the best access to bank branches, but the report highlights the uneven spread of population, leading to challenges for people in rural areas who may face lengthy journeys to access banking services.
The report also points out that 30 parliamentary constituencies, representing over 3 million people, are without any bank branches, while another 56 have only one branch remaining. Banks are responding to the closure by establishing ‘hubs’ where customers can access shared facilities from different banks. Major banks have committed to opening 350 hubs over the next five years, but Which? believes the rollout is too slow and emphasizes the need for the government to hold banks accountable for meeting their commitments. Sam Richardson, deputy editor of Which? Money, stresses the importance of ensuring adequate replacements for closed branches, stating, ‘Bank branch closures can have severe impacts on local communities, including on those who still want to use cash.’ The ongoing debate over the winter fuel payment highlights the complex challenges faced by policymakers as they navigate competing priorities of fiscal responsibility and social welfare, while the closure of bank branches underscores the evolving landscape of financial access and the need for innovative solutions to meet the changing needs of consumers.
