2. Mr Gildernew asked the Minister for Communities for his assessment of the impact that the British Government’s decision to means-test winter fuel payments will have on Fuel Poverty. (AQO 767/22-27)

As I said when it was announced, restricting the winter fuel payment will have a detrimental impact on many in our society. For those who are less well off, it creates an additional financial burden and comes amid a range of cost-of-living pressures. I have already made crystal clear to the Secretary of State for Work and Pensions my Opposition to this decision, and I have outlined the impact that it will have on people in Northern Ireland.
A household is considered to be in Fuel Poverty if it must spend more than 10% of its household income on all fuel use. The last house condition survey identified the types of households most likely to be impacted by fuel poverty. It reported that 31% of households with one or more people of pensionable age are likely to be in fuel poverty. The rate increases to 38% of households headed by a person over the age of 75.

Given the decision to move annual winter fuel payments to a means-tested system, the fuel poverty strategy will aim to minimise the impact of the change on pensioners at risk of fuel poverty in Northern Ireland. We will analyse the impact of the removal on pensioners who are above the threshold for winter fuel payments and income-related benefits and are susceptible to fuel poverty.

Thank you for that, Minister. Given the number of rural properties that have been identified with that crossover, will you outline the steps that you can take or are considering taking to mitigate the effect on rural homes that may not have access to gas or other forms of heating?

It is absolutely the case that rural homes are affected even more than others by Fuel Poverty. I addressed that in my response to Deborah Erskine last week. Of course, we will see it reflected not just in the fuel poverty strategy but in the energy strategy that is being brought forward. How do we tackle fuel poverty? It is not just about raising incomes but about making sure that people have to spend less of their income on heating their home. That is where energy efficiency, in particular, is important.

Will the Minister ensure that the Fuel Poverty strategy reflects the Labour Government's cuts to payments?

Absolutely. We are making good progress on finalising the parameters of the Fuel Poverty strategy, but it will obviously have to change now, because there is a significant difference from what was the case. It is possible that many more older people will fall into fuel poverty, so we need to make sure that we take all the steps that we can to address what, unfortunately, is a new aspect to the issue because of the decision of the Labour Government.

Minister, when it comes to the winter fuel payments, we know that affordable warmth is important. Can you confirm that the Housing Executive will direct that scheme first at pensioners who live in homes that have not yet been retrofitted, in order to make their heat as affordable as possible?

I will absolutely raise that issue with the Housing Executive at our next meeting. I will encourage it to take all the steps that it can to make sure that we identify and help those who will be most affected by the decision.

I will follow up Ms Armstrong's question and the Minister's answer encouraging the Housing Executive to target with its affordable warmth scheme pensioners impacted by the loss of the payment. Will the Minister outline how he expects the Housing Executive to do that when the budget for the affordable warmth scheme has been cut by 53%?

Of course. I am grateful to the Member for raising that issue. It is right that we identify the serious budgetary situation in which we find ourselves. That is why I and, I hope, the Member will continue to press for additional funding for the key schemes and strategies that my Department implements that have an impact on reducing so many of the societal problems that we face. It is also why, in bringing forward a new Fuel Poverty strategy, we will make sure that we look at innovative ways to target the money and make sure that we help those most at need.

Minister, the change to the winter fuel payment will bring in a new process that will undoubtedly cost money. How much will it cost, compared with the savings that the British Government are trying to make?

I do not have the details of the change, first, because it is for a UK Government and the Department for Work and Pensions to issue it. I do not expect any direct cost to the Department. The savings will probably be fairly limited overall. On the additional expense for the system, it may just be about pressing one or two buttons to change it. I hope that there will be no additional expense to it. However, it is clear that the decision will have further ramifications. There may be a saving of around £44 million in Northern Ireland, but that will end up costing us a significant sum of money, because we will see an increased number of people having to visit their GP or, perhaps, even being hospitalised because they are no longer able to heat their home in the way that they did. That is not only shameful but not very clever.

Stormont's decision on means testing means that hundreds of thousands of people will lose out. What work have the Minister and his officials completed in order to recognise the benefits of the universality of public services and of public supports such as the winter fuel payment?

The first part of the Member's question serves to demonstrate how he does not listen. He claims that it was a decision for Stormont, but we do not have the finances to keep the scheme going and make the payment universal. We do not have the means to do that without having access to the DWP system. I do not see how the blame can be laid at the door of the Executive when we do not have the ability to do those two things. I am, however, committed to doing whatever I can to make sure that we support those who are in need.