Latest news with #DarrenJones
The Independent
2 days ago
- Business
- The Independent
Angela Rayner and Rachel Reeves in stand-off over Labour's spending plans
Angela Rayner and Rachel Reeves are at loggerheads over the crucial spending review as the deputy prime minister's department passed an unofficial deadline to settle its budget until the next general election without securing an agreement. With the spending review set to be unveiled on 11 June, departments have told The Independent that the Treasury wanted their plans agreed by the start of this weekend. But The Independent understands that Ms Rayner's Ministry of Housing, Communities and Local Government (MHCLG) is one of a number of departments yet to settle with Ms Reeves and her deputy Darren Jones. The clash at the top of the Labour government comes as ministers resist cuts to their departments and marks a distinct clash over political philosophy between the two most senior women in the government. Ms Rayner wants a more progressive higher tax approach with fewer cuts, while Ms Reeves is being accused of wanting ' austerity 2.0'. Ms Reeves has also been struggling to reach deals with Yvette Cooper's Home Office; Steve Reed's Department for Environment, Food and Rural Affairs; and Ed Miliband's Department for Energy Security and Net Zero. Only defence with a spending package of 2.5 per cent of gross domestic product, and health budgets are protected, with others expected to find efficiency savings to help Ms Reeves balance the books. Sources have said that claims Ms Rayner stormed out of a meeting last weekend, slamming the door, were 'not true', but admitted conversations, while 'cordial', have 'not been easy'. Now it is understood that her demands for a proper settlement for local government in England, as well as funding for the affordable homes scheme beyond 2026, have left her at loggerheads with the chancellor. Trade unions are also taking a very close look at the settlement for councils which will be tied closely to pay demands over the coming years. Already councils like Birmingham have been facing potential bankruptcy because of tight budgets and wage demands. The stand-off comes just a week after a memo from Ms Rayner to Ms Reeves was leaked to the Daily Telegraph in a move which allies of the deputy prime minister described as 'poisonous'. In it she suggested eight different wealth taxes as an alternative to cuts as well as limiting benefits for migrants and reintroducing a payback scheme for middle class families claiming child benefit which was originally introduced by former Tory chancellor George Osborne and then ditched by Jeremy Hunt. An ally of the deputy prime minister noted that 'she is at least make the progressive case' for an alternative to Ms Reeves' strategy. The row comes amid concerns by Labour MPs that Ms Reeves is 'pushing for austerity 2.0'. Already the chancellor has been forced into accepting a U-turn on cutting winter fuel payments to pensioners. She and Sir Keir Starmer are also facing a rebellion from Labour backbenchers on cutting disability benefits. The chancellor has also had her hand forced on investment for red wall constituencies where Labour MPs are under threat of losing their seats to Reform. There have been reports that she plans to splurge on projects in the north of England and midlands by tweaking her strict borrowing rules. Ms Reeves is under added pressure because of the strict borrowing rules she has imposed on herself to maintain economic credibility as well as the election promises not to raise employee national insurance contributions, income tax or VAT. A Treasury source noted: 'More than half of departments have settled [funding agreements] three weeks out from the spending review, which is pretty unusual and the fact you'd always expect negotiations to go on.'
The Independent
2 days ago
- Business
- The Independent
Millionaires should not get subsidy for energy bills, says Treasury minister
'Millionaires' should not get 'subsidy for their energy bills from the Government', a Treasury minister has suggested. Darren Jones has said that winter fuel payments will 'still be targeted to those that need it the most'. Sir Keir said at Prime Minister's questions last week that he wants to restore the payments to more pensioners, following pressure from campaigners, signalling a partial U-turn on one of Labour's first announcements in Government. He claimed that the UK's improving economic prospects could allow for the move at the next fiscal event. The partial U-turn came as ministers are continuing to face calls to scrap the two-child benefit cap. Speaking to Sky News on Thursday evening, Chief Secretary to the Treasury Mr Jones was asked about Reform UK's commitments on both the winter fuel and benefit cap policies. 'All of those things cost money,' Mr Jones said. 'It's right that we set out the detail and how we're going to pay for those in a proper and orderly way.' He added: 'We're sticking to the principle that millionaires shouldn't be getting subsidy for their energy bills from the government, so winter fuel payments will still be targeted to those that need it the most.' Mr Jones also touched on the Government's approach to child poverty, telling the same programme that 'we're a Labour government we want child poverty to be falling in this country, not rising'. 'Of course, we want to help families lift themselves out of poverty.' Last summer, Rachel Reeves announced that the previously universal winter fuel payment would be means-tested. The policy was blamed for the party's collapse in support since last year's general election, and campaigners were challenged about it on the doorsteps during May's local elections. Reform UK leader Nigel Farage confirmed earlier this week that his party would support scrapping the two-child benefit cap and also reverse the winter fuel payment cuts. Sir Keir said he is looking at 'all options' to drive down child poverty when asked if he would like to get rid of the two-child benefit cap on Thursday. Speaking on a visit to the North West, the Prime Minister said: 'There isn't a single bullet, but I'm absolutely determined that we will drive this down, and that's why we'll look at all options, always, of driving down child poverty.' Conservative leader Kemi Badenoch has accused the Labour and Reform leaders of asking people to fund 'unlimited child support for others' by scrapping the two-child cap. Writing in the Daily Mail, she said that the Conservatives are the 'only serious party of sound money'. 'Britain deserves party leaders who don't treat economics like a branch of showbiz, an announcement for a nice headline and forget about the deficit,' she said.
Daily Mirror
2 days ago
- Business
- Daily Mirror
DWP Winter Fuel Payment won't be reinstated for one group despite U-turn
Last week, Sir Keir Starmer signalled a potential U-turn on the controversial policy to scrap the universal Winter Fuel Payment One group of pensioners will not have their Winter Fuel Payment reinstated this year if Labour pushes ahead with its U-turn a government minister has confirmed. In an interview this week, a government minister confirmed that the Winter Fuel Payment would not be given to "millionaire" pensioners and would onyl go to those who "that need it the most". Last week, Sir Keir Starmer signalled a potential U-turn on the controversial policy to means-test the Winter Fuel Payment. During PMQ's, the Prime Minister told the Commons that the government wanted to ensure that more pensioners would be eligible for the Winter Fuel Payment going forward. Keir Starmer said the decision on this, however, was "as part of a fiscal event" so any changes would only come after a Spending Review. He told the Commons: "I recognise people are still feeling the pressure of the cost of living crisis including pensioners, and as the economy improves we want to make sure people feel those improvements as their lives go forward. That is why we want to ensure as we go forward more pensioners are eligible for winter fuel payments. As you would expect we will only make sure we make decisions we can afford." The Department for Work and Pensions (DWP) payment is worth £300 and is paid to pensioner households between October and March. The aim of the money is to help with the extra costs of heating the home over the winter months. Speaking to Sky News on Thursday evening, Chief Secretary to the Treasury Darren Jones was asked about Reform UK's commitments on fully reinstating the Winter Fuel Payment. He said: "All of those things cost money. It's right that we set out the detail and how we're going to pay for those in a proper and orderly way.' "We're sticking to the principle that millionaires shouldn't be getting subsidy for their energy bills from the government, so Winter Fuel Payments will still be targeted to those that need it the most.' It is believed that the Government is considering a rethink of the £11,500 cut-off for the allowance, which would allow more people to get the money. Last year, the Labour government means-tested the Winter Fuel Payment. This meant that only certain pensioners over the age of 66 would receive the money, rather than all pensioners. The move saw over nine million pensioners in the UK lose the extra cash last winter. Labour faced severe backlash at the time, which has continued to follow them. Legal challenges have been raised against the government for the move, with charities warning that it would push more older Brits into poverty. Research conducted by Unite Union found that over two-thirds of its retired members had to turn their heating down last winter, a third were taking fewer baths or showers, and 16% had to cut back on hot meals due to the increased costs of trying to stay warm. The axing of the benefit was also linked to the rise in Reform Councillors in the recent elections.
Wales Online
3 days ago
- Business
- Wales Online
Minister says one group won't get Winter Fuel Payments despite U-turn
Minister says one group won't get Winter Fuel Payments despite U-turn Treasury minister Darren Jones said winter fuel payments will 'still be targeted' Darren Jones, Chief Secretary to the Treasury Millionaires should not get 'subsidy for their energy bills from the Government', a Treasury minister has said. Darren Jones has said that winter fuel payments will 'still be targeted to those that need it the most'. Sir Keir said at Prime Minister's questions last week that he wants to restore the payments to more pensioners, following pressure from campaigners, signalling a partial U-turn on one of Labour's first announcements in Government. He claimed that the UK's improving economic prospects could allow for the move at the next fiscal event. The partial U-turn came as ministers are continuing to face calls to scrap the two-child benefit cap. Speaking to Sky News on Thursday evening, Chief Secretary to the Treasury Mr Jones was asked about Reform UK's commitments on both the winter fuel and benefit cap policies. 'All of those things cost money,' Mr Jones said. 'It's right that we set out the detail and how we're going to pay for those in a proper and orderly way.' He added: 'We're sticking to the principle that millionaires shouldn't be getting subsidy for their energy bills from the government, so winter fuel payments will still be targeted to those that need it the most.' Mr Jones also touched on the Government's approach to child poverty, telling the same programme that 'we're a Labour government we want child poverty to be falling in this country, not rising'. 'Of course, we want to help families lift themselves out of poverty.' Last summer, Rachel Reeves announced that the previously universal winter fuel payment would be means-tested. The policy was blamed for the party's collapse in support since last year's general election, and campaigners were challenged about it on the doorsteps during May's local elections. Reform UK leader Nigel Farage confirmed earlier this week that his party would support scrapping the two-child benefit cap and also reverse the winter fuel payment cuts. Sir Keir said he is looking at 'all options' to drive down child poverty when asked if he would like to get rid of the two-child benefit cap on Thursday. Speaking on a visit to the North West, the Prime Minister said: 'There isn't a single bullet, but I'm absolutely determined that we will drive this down, and that's why we'll look at all options, always, of driving down child poverty.' Article continues below Conservative leader Kemi Badenoch has accused the Labour and Reform leaders of asking people to fund 'unlimited child support for others' by scrapping the two-child cap. Writing in the Daily Mail, she said that the Conservatives are the 'only serious party of sound money'. 'Britain deserves party leaders who don't treat economics like a branch of showbiz, an announcement for a nice headline and forget about the deficit,' she said.
The Guardian
6 days ago
- Business
- The Guardian
Don't cut £13.2bn warm homes pledge over winter fuel payments, Labour told
Plans to reinstate the winter fuel payment will be undermined if the government presses ahead with mooted cuts to home insulation upgrades, dozens of charities and experts have warned ahead of the forthcoming spending review. Labour pledged before entering government to prioritise plugging the leaks in the country's draughty homes as a way of reducing household bills and wasted energy. The £13.2bn promised for the warm homes plan appears under threat, despite estimates that it would add to economic growth, as the chancellor, Rachel Reeves, seeks swingeing spending cuts to meet her self-imposed fiscal rules. As the Guardian revealed last week, Reeves is likely to reverse the axing of the winter fuel payment for many older people after months of damaging outcry against the policy. But rumoured cuts to insulation could as much as halve the money on offer for efficiency upgrades. A group of more than 50 senior figures from socially-focused charities, green campaign groups and housing organisations has written to Darren Jones, the chief secretary of the Treasury, to urge the government to stick to its programme of insulation improvements for older or vulnerable people, and people on low incomes. Experts say the failure to do so would negate some of the benefits of restoring the winter fuel payment. James Dyson, a senior researcher for E3G, a green thinktank that helped organise the letter, said: 'Reinstating winter fuel payments means nothing if the government doesn't keep its promise to fix cold, leaky homes. It's like pouring water into a sieve. The government must keep its manifesto pledge of £13.2bn for insulation, which will lower people's bills permanently and improve their wellbeing.' Caroline Abrahams, the charity director of Age UK, which is a signatory to the letter, added: 'We face an immediate problem of how to ensure older people on low and modest incomes can afford to run their heating this winter, which the government's potential policy change to winter fuel payment may or may not address – but regardless, it's clear that making older people's homes more energy efficient is an essential part of the solution longer term. Working on this at the pace envisaged in Labour's manifesto makes excellent policy sense and would also give older people real hope for the future.' The warm homes plan could save about 3 million vulnerable households about £220 a year. In its 2024 manifesto, the Labour party promised £13.2bn in this parliament, made up partly of money already promised by the previous government that was unspent, and an extra £6.6bn. Research by E3G shows that nearly half a million pensioners could be stuck with high energy bills if the manifesto promise was broken. The warm homes plan is one of the central planks of the government pledge to bring down energy bills by £300 in this parliament, alongside the move to renewable energy and away from gas, the price of which has been highly volatile. Reeves allocated £3.4bn over three years to the plan in last October's budget, and further funding is to be considered as part of phase two of the spending review, due on 11 June. Under the previous government, efforts to subsidise insulation in England and Wales stalled after the failure of the 'botched' green homes grant scheme set up by Boris Johnson in 2021. The letter cited research showing 82% of the 300 constituencies with the highest rates of fuel poverty had Labour MPs, and forecasts by E3G showing that delivering on the warm homes plan in full would enhance economic growth, adding 0.8% to the UK's GDP in this parliament through cost savings and the creation of green jobs in insulation. E3G also found people with disabilities and older people would be at particular risk if spending on home insulation were slashed. About half of the households insulated by the most recent government scheme contained someone living with a disability, and nearly a third of the households had someone aged 65 or over. Among the more than 50 organisations signing the letter were: Citizens Advice; Scope; the National Housing Federation; Generation Rent; the Energy Advice Helpline; and the National Pensioners Convention. A government spokesperson said: 'The energy shocks of recent years have shown the need to go further and faster to upgrade British homes, making them warmer and more efficient, while bringing down bills. Up to 300,000 households will benefit from upgrades through our warm homes plan this year, rolling out measures like insulation, double glazing, solar and heat pumps.'
