Latest news with #OAPS
Daily Mirror
9 hours ago
- Business
- Daily Mirror
Major Winter fuel payment U-turn as millions to get up to £300
More than three-quarters of pensioners will receive winter fuel payments this year as Rachel Reeves unveils crucial details of the Government's U-turn. OAPs with an income of £35,000 or below in England and Wales will receive the benefit this winter. It is a major uplift from the current £11,500 cut-off point. It means nine million pensioners will now be eligible for the winter support. Around two million pensioners whose income is above £35,000 will have the payment automatically recovered or can opt out from receiving it. Keir Starmer last month announced he wanted more pensioners to be eligible for the help, which is worth up to £300. The PM faced a damaging backlash after last year introducing a means-tested system for the winter fuel allowance, which had previously been a universal benefit. Around 10 million pensioners lost the support last winter. The changes announced today will cost around £1.25billion. The Treasury said the new means-testing system is expected to save around £450million, compared to the universal system. No pensioner will need to take any action as they will automatically receive the payment this winter. Payments of £200 per household, or £300 per household where there is someone over 80, will be made. OAPS with incomes above the £35,000 threshold will have the full amount of the winter fuel payment they received automatically collected via PAYE, or via their Self-Assessment return. Pensioners who want to opt out and not receive the payment at all will be able to do so. DWP is developing a simple system to enable OAPs to opt out if they wish. Ms Reeves, the Chancellor, 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.' Follow our Mirror Politics account on Bluesky here. And follow our Mirror Politics team here - Lizzy Buchan, Mikey Smith, Kevin Maguire, Sophie Huskisson, Dave Burke and Ashley Cowburn. Be first to get the biggest bombshells and breaking news by joining our Politics WhatsApp group here. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you want to leave our community, you can check out any time you like. If you're curious, you can read our Privacy Notice. Or sign up here to the Mirror's Politics newsletter for all the best exclusives and opinions straight to your inbox. And listen to our exciting new political podcast The Division Bell, hosted by the Mirror and the Express every Thursday. At PMQs last month, the PM said with the economy showing signs of improvement he wants to ensure "more pensioners are eligible for winter fuel payments". The surprise announcement came amid mounting pressure to roll-back the decision to strip the payment from all but the very poorest pensioners - those who receive Pension Credit. Tensions have been rising in Labour ranks after Reform UK made sweeping gains in the English local elections in May and also won a by-election in the Labour stronghold of Runcorn and Helsby by six votes. At the time, Ros Jones, who held on as Doncaster mayor by a majority of less than 700, said the Government needs to listen to the public as she hit out over winter fuel and benefit cuts. In a furious message after her narrow victory at the mayoral elections, she said the winter fuel cuts were "wrong".
Daily Mirror
5 days ago
- Business
- Daily Mirror
Winter fuel payments could be returned to all pensioners but some will repay it
The Treasury is reportedly looking at linking the payments to people's incomes instead of pension credit, which could mean the universal benefit is restored then recouped Ministers are considering restoring universal winter fuel payments for all pensioners - then taking back the support from richer OAPS. Chancellor Rachel Reeves is expected to set out the details of the Government's winter fuel payments U-turn next week in her Spending Review. She confirmed yesterday that an expansion of eligibility rules will be in place by this winter but did not confirm who would be eligible. Currently, only pensioners are eligible if they receive pension credit, which can be claimed by OAPs whose income is less than £11,500. The Treasury is said to be looking at linking the payments to people's incomes instead of pension credit. Ministers would do this by initially giving back the up to £300 payments as a universal benefit to 10 million pensioners, according to multiple reports. They would then recoup the money from about five million OAPs through higher tax bills over the next financial year. Jonathan Athow, a senior director at HMRC, yesterday highlighted how a similar system works for child benefit. 'What we have done with the child benefit charge shows there is a flexibility in the tax system that shows it does not require self-assessment,' he told MPs. But the Guardian raised concerns that some bereaved families could face requests for their dead relatives to return winter fuel payments. This is because there could be a six-month gap between pensioners receiving the initial payment and then some being asked to return it when they fill in their tax returns, the newspaper said. There are fears thousands of pensioners could have died in that time. Asked about the reports, Education Secretary Bridget Phillipson today refused to be drawn on the details. She said: "I can't comment on speculation. It's not for me to make announcements around precise mechanisms as to how this will be delivered, but what I can say is that we do want more pensioners to receive the winter fuel allowance and the Chancellor (and) the Prime Minister will set out how that will happen. " She added that she did not think "multi-millionaires" should get the winter fuel allowance. Ms Reeves yesterday said pensioners will get the winter fuel allowance this year. Pressed by the Mirror on winter fuel payment eligibility at an event in Rochdale, the Chancellor said: 'We have listened to the concerns people had about the level of the means test. 'So we will be making changes to that. They will be in place so that pensioners will be paid for this coming winter." It comes after pensioners were left in the dark on how many people would be eligible - and when the changes would come into effect. The Government announced cuts to the winter fuel payments not long after the election last year. They faced a huge backlash after stopping the support being paid universally and instead changing to a means-tested system. Pensions Minister Torsten Bell yesterday ruled out returning to universal winter fuel payments. He confirmed the Government will not be returning to a system in which millionaires receive the benefit. He told MPs: "On your question of is there any prospect of a universal winter fuel payment, the answer is no, the principle I think most people, 95% of people, agree, that it's not a good idea that we have a system paying a few hundreds of pounds to millionaires, and so we're not going to be continuing with that. But we will be looking at making more pensioners eligible."
