Nine million pensioners to receive winter fuel payment this year, Reeves says
Some nine million pensioners in England and Wales will receive the winter fuel payment this winter, the Chancellor has announced.
The payment, worth up to £300, will be restored to the vast majority of pensioners who previously received it because anyone with an income of under £35,000 a year will now get the payment automatically.
Those with an income above this threshold will also receive the payment, but it will then be reclaimed from them in tax.
To be eligible for the winter fuel allowance, a person will need to have reached state pension age by the week starting September 15 this year.
Devolved authorities in Scotland and Northern Ireland will each receive a funding uplift so they too can meet the new threshold.
Pensioners who do not want to receive the payment will be able to opt out, according to the Treasury.
The decision to limit the winter fuel payment to only those who claimed pension credit was one of Labour's first acts in Government, aimed at balancing what was described as a £22 billion 'black hole' in the public finances.
This meant the number of pensioners receiving the payment was reduced by around 10 million, from 11.4 million to 1.5 million.
But Sir Keir Starmer announced there would be a partial U-turn on the policy in May, after it was thought to have contributed to Labour's drubbing in the local elections.
The Treasury claims the new arrangement will cost £1.25 billion in England and Wales, while means-testing winter fuel will save the taxpayer £450 million.
Chancellor Rachel Reeves said: 'Targeting winter fuel payments was a tough decision but the right decision because of the inheritance we had been left by the previous government.
'It is also right that we continue to means test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.
'But we have now acted to expand the eligibility of the winter fuel payment so no pensioner on a lower income will miss out.
'This will mean over three-quarters of pensioners receiving the payment in England and Wales later this winter.'
Some two million pensioners who earn more than £35,000 will see their winter fuel payments clawed back via the taxman, the Treasury estimates.
Kemi Badenoch, Leader of the Opposition, claimed the Prime Minister had 'scrambled to clear up a mess of his own making'.
The Conservative leader added: 'I repeatedly challenged him to reverse his callous decision to withdraw winter fuel payments, and every time Starmer arrogantly dismissed my criticisms.
'This humiliating U-turn will come as scant comfort to the pensioners forced to choose between heating and eating last winter. The Prime Minister should now apologise for his terrible judgment.'
Liberal Democrat Leader Sir Ed Davey said: 'Finally the Chancellor has listened to the Liberal Democrats and the tireless campaigners in realising how disastrous this policy was, but the misery it has caused cannot be overstated.
'Countless pensioners were forced to choose between heating and eating all whilst the Government buried its head in the sand for months on end, ignoring those who were really suffering.
'We will now study the detail of this proposal closely to make sure those who need support actually get that support. The pain they went through this winter cannot be for nothing.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
What UK's Strategic Defense Review means for Ukraine
British Prime Minister Keir Starmer announced on June 2 that the United Kingdom is moving to "warfighting readiness," in large part in response to the full-scale invasion of Ukraine and the threat Russia poses to Europe. He made the comment as his government unveiled its latest Strategic Defense Review, which U.K. General Richard Barrons, one of the review's authors, described as the "most profound" change in U.K. defense in 150 years. The review sets out ambitious new targets, including at least 12 new attack submarines, fleets of drones and autonomous vehicles, as well as 7,000 new long-range weapons. Yet it also comes with urgent warnings. The review reveals that the U.K.'s Armed Forces are currently unprepared to fight adversaries such as Russia or China, nor could they conduct high-intensity warfare in a war like that in Ukraine. Insufficient munition stockpiles, low troop numbers, and ageing equipment are just a few of the weaknesses underpinning its assessment. "The speed of development in Ukraine is so far ahead of what countries like the U.K. is capable of." But as well as committing to bolstering its own defense capabilities, the U.K. must also manage the commitments already made to Kyiv, which it has vowed to support with a "100-year partnership." The U.K. has been one of Kyiv's closest supporters since the start of the full-scale invasion, and the review reiterates long-term support for Ukraine, committing 3 billion pounds ($4.06 billion) annually in military aid. "The bottom line is that all of this is about defending the U.K. after the conflict moves on from Ukraine primarily," Keir Giles, a senior consulting fellow at Chatham House, a U.K.-based think tank, told the Kyiv Independent. "Whether it's positive, negative, or catastrophic, either way, that's when the U.K. and its allies need to be ready for Russia's next move." The U.K. wants to create a more flexible procurement process, as demonstrated by that developed by Ukraine throughout the full-scale invasion, a dynamic it says would be vital should the U.K. deploy troops in support of a ceasefire. The review urges deeper defense industrial collaboration, including joint ventures and helping Ukraine access global markets, as well as rebuilding and sustaining its defense sector. This could include helping Ukraine service Soviet-era equipment still used abroad. The U.K. also aims to learn from Ukraine's experience in modern warfare, particularly in land combat, drones, and hybrid threats. However, the review highlights challenges — U.K. stockpiles of weapons such as Storm Shadow long-range missiles have been depleted through its support to Ukraine, and years of underinvestment have weakened domestic defense capacity. The U.K. has announced that it will build six new munition factories. This indicates a significant attempt to address one of the key criticisms of European defense, which is its lack of industrial base and reliance on U.S. support. While U.K. Defense Secretary John Healey has said that "we should expect to see new factories opening very soon," it is not clear how quickly this will translate into meaningful battlefield assistance for Ukraine's Armed Forces. "The speed of development in Ukraine is so far ahead of what countries like the U.K. are capable of, the best-case outcome for Ukraine would just be sending the money there to build stuff," Giles said. When asked how Ukraine could be best supported outside of the recommendations in the review, Giles said the "maximum support" should be given to Ukraine, without the hesitancy about doing damage to Russia." We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
27 minutes ago
- Yahoo
The Daily T: Labour's winter fuel U-turn fires up Farage
Rachel Reeves finally confirmed Labour's rumoured U-turn on the winter fuel cut for pensioners this lunchtime, completing a humiliating climb down for the Government and reinstating the payments for around nine million elderly people. Nigel Farage was quick to take credit for the reversal in a speech in Wales, where he also called for domestic coal mines to be reopened and said Reform chairman Zia Yusuf 'lost his rag' when he resigned late last week – only to return on Saturday. Camilla and Gordon ask whether Reform's continual outflanking of the Tories like this is only cementing their place in the public's minds as the unofficial opposition. Later, they speak to the MP tabling a new free speech bill after a man was prosecuted for burning a Koran. Nick Timothy says that blasphemy laws are being brought in through the back door to quash criticism of Islam. Watch episodes of the Daily T here. You can also listen on Spotify, Apple Podcasts, or wherever you get your podcasts. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
27 minutes ago
- Yahoo
US imposes sanctions on Los Chapitos, a faction of the Sinaloa Cartel
By Daphne Psaledakis WASHINGTON (Reuters) -The United States on Monday imposed sanctions on Los Chapitos, a faction of the Sinaloa Cartel, labeling it a Specially Designated Global Terrorist as President Donald Trump's administration seeks to tackle cross-border drug trafficking. The U.S. Treasury Department in a statement said it designated Los Chapitos under illicit drug and terrorism authorities, accusing it of facilitating trafficking and production of fentanyl, the lethally potent opioid. Two of its fugitive leaders, both sons of convicted Mexican drug kingpin Joaquin "El Chapo" Guzman, were also hit with sanctions, according to the Treasury Department. "Los Chapitos is a powerful, hyperviolent faction of the Sinaloa Cartel at the forefront of fentanyl trafficking into the United States," Treasury Secretary Scott Bessent said in the statement. "At the Department of the Treasury, we are executing on President Trump's mandate to completely eliminate drug cartels and take on violent leaders like 'El Chapo's' children. Treasury is maximizing all available tools to stop the fentanyl crisis and help save lives." The Treasury on Monday also imposed sanctions on what it said was a regional network of Los Chapitos associates and businesses based in Mexico. Monday's action freezes any of their U.S. assets and generally bars Americans from dealing with them. Those that engage in certain transactions with the sanctioned parties also risk being hit with sanctions. The move comes after the Trump administration in February designated Tren de Aragua, the Sinaloa Cartel and other drug cartels as global terrorist organizations. Trump, a Republican, issued an executive order after taking office on January 20 that called on officials to evaluate whether any criminal cartels or transnational gangs should be designated as terrorism groups. The U.S. terrorism designations have come alongside a government crackdown on migration, with thousands of foreigners being deported to third countries in Latin America.
