Latest news with #TorstenBell
Telegraph
12 hours ago
- Business
- Telegraph
‘Millionaire' pensioners will not get winter fuel payments
'Millionaires' will not be eligible for winter fuel payments this year even after the Prime Minister's about-turn on cuts to the scheme, the pensions minister has told MPs. Torsten Bell said there will be no return to the system under which all pensioners were given as much as £300 per year to help cover the cost of heating in the cold months. 'Is there any prospect of a universal winter fuel payment? The answer is no,' he told the Commons work and pensions committee. 'Most people – 95pc of people – agree that it is not a good idea that we have a system paying a few hundred pounds to millionaires. But we will be looking at making more pensioners eligible.' Rachel Reeves, the Chancellor, sparked a backlash last summer when she announced restrictions on payments shortly after Labour won the general election. The party had not made any reference to the idea in its manifesto or election campaign, but the policy was cited as evidence Labour was serious about reining in excessive public borrowing. Mr Bell declined to set out the exact terms of the loosened means test which will replace the current system, under which pensioners only receive the winter fuel payments if they also claim pension credit. He also said that income, not just wealth, could form a part of the qualifying criteria. 'We are committed to the principle that there should be some means testing, and that those on the highest incomes shouldn't be receiving winter fuel payments,' he said. 'Fairness is an important part of it. My priority is those who are on lower incomes but have missed out.' More than a fifth of all households aged over 65 have assets worth £1m or more, according to the Office for National Statistics, including their homes, pensions and other wealth. Mr Bell's comments indicate that, if millionaire status is the qualifying criteria, more than 2.5m pensioner households stand to miss out on the restoration of winter fuel payments as a result. Baroness Altmann, who served as a pensions minister under the Conservatives, said this would risk penalising those who are well off on paper but have little cash to cover energy bills. She said: 'Very often people are asset rich and income poor. Just because you live in a house worth £1m in London, which you might have bought for £20,000, does not mean you have got plenty of money to spend. You can still be on a very low income. 'If you have big expenses for a house, if your house is not very well insulated, and especially if you are poorer and have not been able to spend a lot of money on updating, then they will need more money for heating than younger families.' She favours offering winter fuel payments to all pensioners whose income is below the higher rate tax threshold of £50,271 per year. 'The most logical decision would be to treat it like child benefit, and if you pay higher rate tax then you do not get it,' Baroness Altmann said. 'If you pay higher rate tax, the Inland Revenue knows, so could adjust your tax code or find some other way to make sure you do not get the money.' It came as Ms Reeves confirmed that the new arrangements will be in place to give the payments to more pensioners this winter than last. 'People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter,' the Chancellor said.
Times
13 hours ago
- Business
- Times
Winter fuel payments back but not for millionaires, says minister
Winter fuel payments will be restored this winter, but wealthier pensioners will not get them, ministers have said. Rachel Reeves, the chancellor, promised that 'more people will get winter fuel payments', and said details would be set out soon. She said there would still be a 'means test' but pledged to introduce it in time for this winter, despite concern that ageing government computer systems would struggle to adapt thresholds in time. Torsten Bell, the pensions minister, ruled out restoring universal payments to all pensioners. 'Most people — 95 per cent of people — agree that it's not a good idea that we have a system paying a few hundred pounds to millionaires. And so we're not going to be continuing with that,' he told the work and pensions committee. 'Is there any prospect of a universal winter fuel payment? The answer is no.' In one of her first acts in office, Reeves stripped winter fuel payments from all but the poorest pensioners to save £1.5 billion. But the move proved so politically toxic that Sir Keir Starmer announced a U-turn last month, without giving details of how many of the ten million pensioners who lost payments would have them restored. Reeves said that the economy was now 'in a better shape' than when she scrapped payments last year, adding in a speech in Rochdale: 'We have also listened to the concerns that people had about the level of the means test, and so we will be making changes to that.' • Spending review cuts could leave Keir Starmer's pledges in tatters Ministers had previously suggested changes to ageing computer systems may not be in place in time for this winter. But Reeves promised that new rules 'will be in place so that pensioners are paid this coming winter, and we will announce the detail of that and the level of that as soon as we possibly can'. She added: 'People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter.' Bell suggested that millions of higher-income pensioners would not have their payments restored. 'We are committed to the principle that there should be some means testing — that those on the highest income should not be receiving winter fuel payments,' he said. 'My priority is those on lower incomes who have missed out … All of us would have heard from people on lower incomes who did not receive a winter fuel payment this year.' At present, payments are restricted to those claiming pension credit, which is given to pensioners with income below £11,500 for a single person or £18,000 for a couple. Bell said ministers were 'looking at all of the policy options for how eligibility can be extended', including taxing payments. • He dismissed calls to raise the pension credit threshold, however, saying it would be 'very expensive' and would not lead to many people getting winter fuel payments restored. 'If the objective was for more people to receive the winter fuel payment, you cannot achieve it via that mechanism, because you would only get a very small increase in the pension credit threshold for any given level of spending,' he said. He also suggested that a tapered threshold, where payments are gradually withdrawn, was not a preferred option for payments of £200-£300 a year, saying they were 'more bureaucratic' to apply. 'Tapers involve more information being held by the state, they involve more complexity,' he said. 'We obviously do need to think about the requirements to administer that, the costs of doing so relative to the benefits.' Other options include widening eligibility to pensioners claiming housing benefit or disability benefit. The Resolution Foundation, where Bell was previously chief executive, has estimated this would cost £300 million a year and restore payments to 1.3 million pensioners. However, Bell downplayed the importance of winter fuel payments in protecting pensioners, dismissing claims that withdrawing them had led to more dying of cold. 'We saw negative excess deaths, so fewer deaths than normal [last winter],' he said. He said tackling long waits for NHS treatment and poorly insulated homes were far better ways of helping pensioners who suffered because they were unable to afford heating. 'The biggest letdown of older generations in Britain is the state of our health service,' he said. 'We're not going to solve all of that within the social security system. We've got to deal with that in the health and care system more broadly.' As Ed Miliband, the energy secretary, battles the Treasury to mitigate cuts to his £6.6 billion warm home plans, Bell said a 2013 cut to insulation was 'among the bigger mistakes' of the past 20 years and meant 'a lot of people are living in homes that are not high-enough quality'.
Daily Mirror
14 hours ago
- Business
- Daily Mirror
DWP message to 'all pensioners' in Pension Credit update
The latest set of Pension Credit statistics shows that an additional 58,800 households have been awarded the means-tested benefit since last summer's Winter Fuel Payment announcement A government minister has urged people to consider applying for Pension Credit. The Department for Work and Pensions (DWP) has unveiled new Pension Credit statistics that show an extra 58,800 households have been granted the means-tested benefit since last summer's Winter Fuel Payment announcement limiting the benefit to Credit claimants. The DWP also reported a significant reduction in outstanding applications. It's fallen from approximately 30,000 at the end of June 2024 to 10,800. Pensions Minister Torsten Bell previously stated that the average processing time for the State Pension income boost, worth over £4,300 this year, is 52.8 working days - roughly 10 weeks. This implies that low-income older individuals submitting new claims this month could receive their first payment and any arrears by the end of August. Commenting on the new figures, the DWP pensions minister said: "We are absolutely committed to ensuring every pensioner receives what they are entitled to. Thanks to our biggest ever awareness campaign we have dealt with a record number of Pension Credit claims in the last 10 months, with an additional 58,800 households now receiving support. "Pension Credit can be a lifeline to those on low incomes, and I'd urge all pensioners who think they might be eligible after a change to their circumstances in later life to apply. "This support for pensioners comes on top of our commitment to the Triple Lock, boosting the State Pension for millions by up to £1,900 this parliament" According to data, the Department for Work and Pensions (DWP) has seen a steep rise in Pension Credit applications in 2024/25, with 321,000 submissions marking a 28 per cent surge or an additional 69,900 compared to the previous year, reports the Daily Record. After the Government's decision on 29 July 2024 to means-test Winter Fuel Payments, DWP has received 285,600 claims for Pension Credit, which is a substantial 51 per cent increase, equating to 96,200 more than the same timeframe last year. Of these applications, a total of 162,800 have been successful. That is a significant 57 per cent uptick or an additional 58,800 awards when contrasted with the corresponding period a year ago. Commenting on the spike, Stephen Lowe, the group communications director at retirement firm Just Group, said: "The take up of Pension Credit has been subject to a harsh spotlight since the UK Government first limited the Winter Fuel Payments to people who are in receipt of Pension Credit or certain other means-tested benefits." Lowe also noted the positive impact of the initiative, saying: "There has been a significant boost in take-up with more than 162,000 claims awarded since the means-testing of the winter fuel payment was introduced. This is a significant success that will see these low-income pensioner households receiving this much-needed financial support as well as unlocking the gateway to other valuable benefits, like the Winter Fuel Payments and free TV licences for the over-75s." He noted: "The Prime Minister recently confirmed that eligibility for Winter Fuel Payments will be widened, but this should not distract attention from the important job of work to be done to increase the take up of Pension Credit. This benefit is specifically targeted at the poorest pensioners and it remains a concern that there are still around 700,000 families that are eligible for Pension Credit but not claiming it. "These people may be failing to claim for a number of reasons - they may simply be unaware of the benefit, not know how to claim or assume they are not eligible if they own their own home. Just's research conducted this year among people aged over 66 found that four in 10 (40%) homeowners and one in seven (15%) of renters had never checked their benefit entitlement." Speaking further, he said: "The Government's awareness drive is having a positive impact with the number of claims increasing noticeably, but there are people still missing out on this valuable help. "If you think you, or a member of your family, may be entitled to Pension Credit there are a range of free resources to help check eligibility. The government website has links to useful third-party calculators while other good sources are Citizens Advice, local councils and charities." Who can claim Pension Credit? There are two types of Pension Credit - Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must have reached the State Pension age of 66. Your weekly income needs to be less than the minimum amount that the UK Government has determined is necessary for living. This is £227.10 for a single person and £346.60 for a couple - these amounts could be higher if you're disabled, a carer or have certain housing costs. Savings Credit can only be received if: you reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it How much could you potentially receive from DWP? Guarantee Credit tops up your weekly income to: £227.10 for a single person £346.60 for a couple (married, in a civil partnership or cohabiting) You might be able to receive more than this if you're disabled or a carer, or you have certain housing costs. Savings Credit can give you up to: £17.30 a week for a single person £19.36 a week for a couple (married, in a civil partnership or cohabiting). ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000. How to determine eligibility for Pension Credit Older people, or their friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on here. Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday. Expert help and advice is also available from: Independent Age Income Max Citizens Advice Age UK More details about claiming Pension Credit can be fond on here. Additional help if you receive Pension Credit If you qualify for Pension Credit you can also receive other help, such as: Housing Benefit if you rent the property you live in Support for Mortgage Interest if you own the property you live in Council Tax discount Free TV licence if you are aged 75 or over Help with NHS dental treatment, glasses and transport costs for hospital appointments Help with your heating costs through the Warm Home Discount Scheme, Winter Fuel Payments or Pension Age Winter Heating Payment A discount on the Royal Mail redirection service if you are moving house Mixed aged older couples and Pension Credit In May 2019, the law was altered so that a 'mixed age couple' - a pair where one partner is of State Pension age and the other isn't - are deemed to be a 'working age' couple when assessing entitlement to means-tested benefits. This implies they can't claim Pension Credit or pension age Housing Benefit until both are of State Pension age. Prior to this DWP alteration, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age. How to use the Pension Credit calculator To use the calculator on you will need details of: earnings, benefits and pensions savings and investments You'll need the same details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options. This includes: Your date of birth Your residential status Where in the UK you live Whether you are registered blind Which benefits you currently receive How much you receive each week for any benefits you get Whether someone is paid Carer's Allowance to look after you How much you get each week from pensions - State Pension, private and work pensions Any employment earnings Any savings, investments or bonds you have Once you've answered these questions, a summary screen displays your responses, allowing you to go back and alter any answers before submitting. The Pension Credit calculator then shows how much benefit you could receive each week. All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support. There's also an option to print off the responses you provide using the calculator tool to help you fill out the application form more swiftly without having to search for the same details again. Give the Pension Credit Calculator a go for yourself or a family member to ensure you're receiving all the financial support you're entitled to claim. Who can't use the Pension Credit calculator? You cannot use the calculator if you or your partner: are deferring your State Pension own more than one property are self employed have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit How to make a claim You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months. This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time. You will need: your National Insurance number information about your income, savings and investments your bank account details, if you're applying by phone or by post If you're backdating your claim, you'll need details of your income, savings and investments on the date you want your claim to start. Apply online You can use the online service if: you have already claimed your State Pension there are no children or young people included in your claim To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the Pension Credit calculator here to find out how much you could get.
The Independent
15 hours ago
- Business
- The Independent
Millions thrown into uncertainty over winter fuel payment update
The government will make changes to winter fuel payments, ensuring pensioners are paid this coming winter, but details on the level of payment and how it will be funded will not be announced until the Autumn budget. Pensions minister Torsten Bell said there is no prospect of returning to a universal winter fuel payment for all, as the government aims to avoid paying millionaires. Labour MP Rachael Maskell criticised the decision, saying that means-tested benefits often fail to reach vulnerable people. In July, the chancellor announced that pensioners not receiving pension credits or other means-tested benefits would no longer receive the winter fuel payment, reducing the number of recipients from 10.8 million to 1.5 million. Critics argue the cuts disproportionately harm vulnerable people, potentially forcing 100,000 pensioners into poverty by 2026.
The National
15 hours ago
- Business
- The National
Rachel Reeves confirms Winter Fuel U-turn – but backs fiscal rules
The Chancellor is under mounting pressure to relax the self-imposed spending restrictions, including from the International Monetary Fund which predicted they will result in emergency cuts. But Reeves said on Tuesday that her rules were 'non-negotiable', claiming that ditching them would risk economic chaos. She did however confirm that the Government was seeking to allow more pensioners access to Winter Fuel Payments – amid growing dismay among Labour ranks over the politically toxic fallout from the cut. An extra £300 billion will be available for public spending in the coming years, Reeves claimed, because of her tax hikes and changes to the way borrowing is accounted. She said: 'Not every department will get everything that they want next week and I have had to say no to things that I want to do too.' (Image: PA) But, Reeves (above) added: 'That's not because of my fiscal rules. It is a result of 14 years of Conservative maltreatment of our public services, our public realm and of our economy.' The Chancellor denied she would be forced into further tax increase to meet her fiscal rules, which include a promise to match day-to-day spending with revenues. She said: 'We made decisions in the budget last year to increase taxes by £40 billion. READ MORE: Labour minister in 'jaw-dropping' U-turn on Glasgow drug consumption room 'We have absolutely no intention of repeating a budget on that scale again.' There are growing worries in England that cuts to the policing budget will result in forces having to further pick and choose which crimes are investigated, but Reeves dismissed concerns raised by the head of the Metropolitan Police. On Winter Fuel Payments, the Chancellor said: 'People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter.' (Image: BBC) Meanwhile, pensions minister Torsten Bell (above) told MPs that, while more pensioners will be eligible, there is no prospect of returning to universal winter fuel payments. Speaking to the Work and Pensions Committee, Bell said: 'Directly 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.'
