
Nine million pensioners to receive winter fuel payment this year, Reeves says
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.'
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South Wales Guardian
24 minutes ago
- South Wales Guardian
Winter fuel U-turn should have come a long time ago, Reeves told
Chancellor Rachel Reeves said on Monday that nine million pensioners will be in receipt of the payment this year after a cut was announced in the first weeks of the Labour Government last summer. The initial decision was met with heavy backlash and forced the Scottish Government to delay the implementation of its own devolved benefit. John Swinney's administration later announced a similar payment for pensioners which would be tapered and see those on the highest incomes receiving £100, compared to £305.10 for those on the least. Monday's announcement will result in cash being sent to the devolved administration at Holyrood, and Scottish Labour has urged the Government to increase its payments. But Scotland's Social Justice Secretary Shirley-Anne Somerville said the decision was 'a betrayal' of pensioners. 'I welcome any extension of eligibility by the UK Government, but this is a U-turn the Chancellor should have made a long time ago,' she said. 'But there is still no detail about how the Chancellor intends to go about that. Unfortunately, it still sounds as if many pensioners will miss out.' Ms Somerville added that the Scottish Government had not been consulted on the decision and urged UK ministers to 'ensure the Scottish Government is fully appraised of the proposed changes as soon as possible'. 'The Cabinet Secretary for Finance and Local Government wrote to the Chief Secretary to the Treasury last week to urge the UK Government to share its plans with us as quickly as possible, so that we can understand any implications for our own programmes and, crucially, our budget,' she said. Scottish Labour MSP Paul O'Kane said: 'The winter fuel payment is a devolved payment in Scotland and Scottish Labour has long been clear that we want to see it reinstated for the majority of pensioners up here – but despite their loud spin, the SNP voted against our attempts to do so. 'The SNP must not go ahead with plans that would rob poorer pensioners in order to fund payments for millionaires. 'The SNP must re-examine their own proposals in light of this game-changing announcement, ensure payments reach those most in need, and give a cast-iron guarantee that no struggling Scottish pensioners will be left out of pocket under their plans.' The Scottish Government's plans were initially to provide a universal payment to pensioners, but the proposals were scuppered by the Chancellor's announcement of the cut last summer, forcing ministers to create a different system for this winter.

Leader Live
24 minutes ago
- Leader Live
Winter fuel U-turn should have come a long time ago, Reeves told
Chancellor Rachel Reeves said on Monday that nine million pensioners will be in receipt of the payment this year after a cut was announced in the first weeks of the Labour Government last summer. The initial decision was met with heavy backlash and forced the Scottish Government to delay the implementation of its own devolved benefit. John Swinney's administration later announced a similar payment for pensioners which would be tapered and see those on the highest incomes receiving £100, compared to £305.10 for those on the least. Monday's announcement will result in cash being sent to the devolved administration at Holyrood, and Scottish Labour has urged the Government to increase its payments. But Scotland's Social Justice Secretary Shirley-Anne Somerville said the decision was 'a betrayal' of pensioners. 'I welcome any extension of eligibility by the UK Government, but this is a U-turn the Chancellor should have made a long time ago,' she said. 'But there is still no detail about how the Chancellor intends to go about that. Unfortunately, it still sounds as if many pensioners will miss out.' Ms Somerville added that the Scottish Government had not been consulted on the decision and urged UK ministers to 'ensure the Scottish Government is fully appraised of the proposed changes as soon as possible'. 'The Cabinet Secretary for Finance and Local Government wrote to the Chief Secretary to the Treasury last week to urge the UK Government to share its plans with us as quickly as possible, so that we can understand any implications for our own programmes and, crucially, our budget,' she said. Scottish Labour MSP Paul O'Kane said: 'The winter fuel payment is a devolved payment in Scotland and Scottish Labour has long been clear that we want to see it reinstated for the majority of pensioners up here – but despite their loud spin, the SNP voted against our attempts to do so. 'The SNP must not go ahead with plans that would rob poorer pensioners in order to fund payments for millionaires. 'The SNP must re-examine their own proposals in light of this game-changing announcement, ensure payments reach those most in need, and give a cast-iron guarantee that no struggling Scottish pensioners will be left out of pocket under their plans.' The Scottish Government's plans were initially to provide a universal payment to pensioners, but the proposals were scuppered by the Chancellor's announcement of the cut last summer, forcing ministers to create a different system for this winter.


The Independent
26 minutes ago
- The Independent
Rachel Reeves warned against ‘unacceptable' London snub in spending review
London Mayor Sadiq Khan is urging Rachel Reeves to increase funding for London in the upcoming spending review, particularly for transport projects and the Metropolitan Police. Sources close to Khan warn it would be "unacceptable" if London doesn't receive the necessary funds, accusing Reeves of potentially pursuing an "anti-London agenda" similar to previous Conservative governments. City Hall is concerned London may not receive any of the £113 billion unlocked for infrastructure spending, with key priorities including extending the Docklands Light Railway and the Bakerloo underground line. Reeves has indicated a focus on prioritising spending outside of London and the South East, allocating over £15 billion to mayoral authorities in other regions. The spending review is expected to allocate a significant boost to the NHS, with other departments, including the Home Office, facing budget squeezes.