Starmer Reverses Cut to UK Winter Fuel Subsidy That Hurt Labour
Keir Starmer's government said more than three-quarters of pensioners in England and Wales will receive cold weather fuel payments this winter, reversing the bulk of a cut to the benefit that many of his lawmakers blamed for the ruling Labour Party's waning popularity.
Pensioners with an income of £35,000 ($47,500) or below will be eligible to receive winter fuel payments this year, the Treasury said in an emailed press release Monday, ahead of Chancellor of the Exchequer Rachel Reeves' spending review on Wednesday. That amounts to some nine million people according to Britain's finance ministry, and compares to an estimate of just 1.5 million for the past winter.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Labour MPs call for action on benefits after winter fuel U-turn
Labour MPs have broadly welcomed the government's decision to reinstate winter fuel payments for three-quarters of pensioners but some are using the U-turn to renew their calls for planned benefit cuts to be reversed. Nine million pensioners in England and Wales with an annual income of £35,000 or less will now be eligible for up to £300 to help with energy bills this winter. Labour MPs thanked the government for listening to their concerns, arguing means testing the payment was fair but that the threshold was set too low last year. However, several urged ministers to also think again on planned cuts to disability payments, while others called for the two-child benefit cap to be scrapped. Under planned changes to the benefits system it would be harder for people with less severe conditions to claim personal independence payments (Pips), while the government is promising more support to help people get into work. While the two-child benefit cap policy prevents most families from claiming means-tested benefits for any third or additional children born after April 2017, which critics say has pushed people into poverty. Ministers are considering lifting the cap, with a decision expected in the autumn, when a child poverty strategy is published. Pressure from Labour backbenchers over the issues - as well as on winter fuel payments - has been growing since the party's poor performance at local election's in May. The winter fuel payment was previously paid to all pensioners but last year the government announced only those receiving pension credit or another means-tested benefit would be eligible in England and Wales. The original cut last year was estimated to save £1.7bn, with the government arguing it was necessary because of the state of the public finances. But the move, which meant more than 10 million pensioners did not receive the payment in 2024, was criticised by charities, unions, opposition parties and many Labour MPs. Following mounting pressure, Prime Minister Sir Keir Starmer announced a U-turn last month, with the details of who will get the payment this winter set out on Monday. The chancellor said she would detail how the £1.25bn policy would be paid for in the autumn Budget. How much is the winter fuel payment and who will get it? Labour hope to put winter fuel misstep behind them At-a-glance: Key changes to benefits in welfare shake-up Imran Hussain was among the Labour MPs to call for the planned benefit cuts to be scrapped in response to a government statement in the Commons on changes to winter fuel payments. "It is clear the government has listened, so I ask them to listen again to the growing calls in this chamber and scrap their planned, devastating cuts to disability support," the MP for Bradford East said. Fellow Labour MPs Nadia Whittome and Richard Burgon also welcomed the winter fuel U-turn but urged the government to listen to backbench concerns over benefit cuts. In response, Torsten Bell, who is both a Treasury minister and pensions minister, told MPs there needed to be "a better system focusing on supporting those who can work into work". He added that the status quo - where 1,000 people a day are going onto Pips - was not "a position that anybody should support". Labour MP Rachael Maskell, who has been a leading campaigner for restoring winter fuel payments, welcomed the government's change in policy, saying it was "long overdue". She told BBC Radio 4's World at One programme the £35,000 salary threshold for the payment was a "sensible measure". However, Maskell called on the government to consider a larger payment following increases in energy prices over the past year. The MP for York Central also urged a rethink on planned benefit cuts, adding: "You can't rob disabled people in order to pay older people, that doesn't make sense." Meanwhile, she was among several MPs to reiterate their calls for the government to scrap the two-child benefit cap. In the Commons Rebecca Long Bailey, Labour MP for Salford, also asked for reassurances minsters "are doing all they can to outline plans to lift the two-child cap on universal credit as soon as possible" to bring children out of poverty. In response Bell said "all levers to reduce child poverty are on the table". The minister added: "She's absolutely right to raise this issue, it is one of the core purposes of this government. "We cannot carry on with a situation where large families, huge percentages of them, are in poverty." The Conservatives have called for the government to apologise to pensioners who lost out on winter fuel payments last year. Shadow work and pensions secretary Helen Whately described the U-turn as "the most humiliating climbdown a government has ever faced in its first year in office". She told the Commons "this rushed reversal raises as many questions as it answers", arguing the move was "totally unfunded" and could lead to tax rises. 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." Sign up for our Politics Essential newsletter to read top political analysis, gain insight from across the UK and stay up to speed with the big moments. It'll be delivered straight to your inbox every weekday.
Yahoo
an hour ago
- Yahoo
The benefits system is out of control
The decision to axe the winter fuel payment for most pensioners must rank among the most ill-judged policies introduced by a Chancellor in recent times, and there is strong competition for that accolade. Rachel Reeves made the decision shortly after taking office because she said it was necessary to help plug a £22 billion 'black hole' she had discovered in the nation's finances. Her argument might have had some merit had she not then blown much of the savings on pay rises for train drivers and public sector workers. The juxtaposition of help for Labour's union allies while pensioners shivered rapidly became toxic for the Government, generating one of the fastest reversals of support for any new administration. In the end, with Reform advancing in the polls – and pledging to restore the payment – Sir Keir Starmer ordered a screeching U-turn which the Government maintains is possible because the economy is doing so well, as if anyone believes that. Now, instead of around 1.5 million older people on pensioner credit receiving the payment, it will be paid to about nine million OAPs with an income below £35,000. Why this figure has been chosen is as much a mystery as other 'cliff edge' sums that abound in our overly complex tax and benefit system. Indeed, this U-turn just makes it even more convoluted. Everyone will receive the payment but it will then be clawed back from an estimated two million people earning more than the £35,000 threshold via PAYE or a tax return. In other words, yet more red tape will be imposed to make a quarter of pensioners return an allowance that began life in 1997 as a universal benefit. Although many better-off pensioners often said they did not need the money, and many gave it to charity every Christmas, at least it was straightforward. To some extent so was limiting it to people on pensioner credit, since that is already linked to income. But what is now proposed is a dog's breakfast, with opt-outs and other implications still to be resolved. Tomorrow, Ms Reeves will unveil her spending plans for the next four years. She is being urged to get a grip on the rapidly expanding benefits budget; but if this experience is to be our guide, there is little chance that it will ever be reined in. 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.
Bloomberg
an hour ago
- Bloomberg
US, China Trade Talks to Continue Tuesday After Day One Wraps
Trade talks between the US and China will continue into a second day, according to a US official, as the two sides look to ease tensions over shipments of technology and rare earth elements. Representatives for both nations ended their first day of negotiations in London after more than six hours of discussions at Lancaster House, a 19th century mansion near Buckingham Palace. The talks concluded around 8 p.m. London time. The advisers will meet again Tuesday at 10 a.m. in the British capital, the official said.
