Carmichael responds to Chancellor’s statement on public finances

Orkney and Shetland MP, Alistair Carmichael, has responded to today’s statement on the public finances by the Chancellor, condemning the “reckless and irresponsible” economic management by the last Conservative government but warning of risks from a blanket change to the Winter Fuel Payment. 

The Chancellor stated today that the government has inherited a projected overspend of £22bn from the Conservatives, and has therefore cut several projects planned by the previous administration. 

Winter fuel payments will also now be restricted to those on pension credits or other means-tested benefits, meaning less than half of those currently receiving the payment are likely to retain it this winter.

Mr Carmichael said:

“The shortfalls in the public finances announced today are pretty shocking. The last Parliament saw the triumph of reckless and irresponsible economic thinking from the Tories and now they have left the rest of us to pay the price, with a stalling economy and millions of families struggling to make ends meet.

“Even so I am concerned by the Chancellor’s decision to make a blanket change to the Winter Fuel Payment today. Restricting access to the payment only to those on benefits risks serious unintended consequences, particularly in the isles where our fuel poverty rates are amongst the highest in the country. 

“We know that as many as a third of pensioners who are entitled to benefits do not claim them, so many may miss out even if they still have a right to the payment. Focusing resources on those in most need is a worthy principle in theory, but I fear in this instance it is likely to have harmful consequences. Fuel poverty does not work in the same way as other forms of poverty – as anyone in the Highlands and Islands knows all-too well.”