Labour's 'winter fuel death tax': Tens of thousands of grieving families could be hounded to pick up their dead elderly relative's HMRC bill
Downing Street indicated a 'winter fuel death tax' could be introduced after announcing that millions of pensioners stripped of the subsidy will get it back from this winter.
It is understood that the model currently most favoured for restoring the subsidy is to pay it to all pensioners but claw the money back through higher tax bills from the wealthiest.
This is because means-testing the payments is viewed as too complex.
However, there are concerns about the time period of at least six months between receiving the subsidy and it being declared or clawed back at the end of the tax year.
It is estimated that tens of thousands of elderly people who die within that period could be affected, potentially forcing their grieving relatives to pick up the HMRC bill after submitting their loved-one's posthumous tax return.
Dennis Reed, of over-60s campaign group Silver Voices, branded ministers 'heartless' for even considering the model. He said: 'This winter fuel death tax would be absolutely pathetic.'
Asked about a report in the Guardian, which first reported that thousands of relatives face being hounded by HMRC, the Prime Minister's official spokesman refused to rule it out.
He said: 'We will set out the details on the policy in due course... HMRC have already got a well-established process in place for assessing someone's tax affairs after they've passed away via probate.'
He added: 'The work is under way. I'm not going to give a running commentary on that work.'
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