Fuel payment rise a crude bribe, claims Lib Dem

The chancellor, Gordon Brown, is being accused of increasing pensioners' winter fuel payments as a "crude bribe" amid claims that the government plans to cut the grants by one quarter later this year.

Research by the Liberal Democrats has indicated that the government's spending projections for 2001-2 onwards are based on fuel grants of £150 - £50 less than in the current year.

In his pre-budget statement last autumn, the chancellor raised the level of the payments, made to all pensioners, to £200, rather than the £150 ministers had previously suggested.

The Liberal Democrat social security spokesman, Steve Webb, challenged Mr Brown to make clear whether the government would maintain the grants at the increased level. He said: "This is either a pretty crude election bribe and will be cut by a quarter six months after the likely election, or they will not cut it, in which case they need to find £400m from somewhere. Either way, the chancellor has questions to answer."

The winter fuel payment was introduced in 1997-98, and for the following year was set at £20 for most pensioners and £50 for those of them on income support. The rate was increased to £100 for all pensioners in 1999-2000.

A parliamentary answer to a question tabled by Mr Webb details the rise in government spending on the payments from £200m when first introduced to £1.7bn in the current financial year. However, the reply, by social security minister Jeff Rooker, did not answer Mr Webb's call for details of planned spending on the grants.