Latest news with #UKgovernment
The Independent
a day ago
- Business
- The Independent
Winter fuel payments won't be reinstated for all in a blow to millions
Winter fuel payments will not be reinstated for all pensioners, a minister has said in a blow to millions of people across the country. It came as Rachel Reeves confirmed an expected U-turn on the controversial cuts would be in place for this winter, but said the government would not set out details of how it would pay for it until the autumn Budget. Sir Keir Starmer last month announced his intention to give more people access to winter fuel payments, just months after Labour made the previously universal payment means-tested. Rachel Reeves confirms that the winter fuel payment will be restored for some pensioners in time for this winter (PA) But there has been growing confusion over what these changes would look like, who they will affect and when they would be introduced. On Wednesday, pensions minister Torsten Bell confirmed there was no prospect of returning to a universal winter fuel payment for all. Speaking to the work and pensions committee, Mr 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 per cent 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.' It was initially expected that the changes would be unveiled at next week's spending review, but the chancellor has now said the government will 'set out how everything would be paid for in the budget in the autumn'. Reports in The Guardian and The Times say the Treasury is considering restoring the payment for all pensioners, before requiring better-off claimants to pay it back through tax bills over the course of the next financial year. The threshold could be based on the average level of real household disposable income, reports The Times . Speaking in Manchester on Wednesday, Ms Reeves said: 'I had to make decisions last year to restore sound public finances, and that involved a number of difficult decisions around welfare, taxation and also public spending, including the decision to means-test winter fuel payments so only the poorest pensioners, those on pension credit, got it. 'But we have now put our public finances on a firmer footing. The economy is in a better shape, but we have also listened to the concerns that 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 are paid this coming winter, and we'll announce the details of that and the level of that as soon as we possibly can.' Labour MP Rachael Maskell criticised the decision not to restore winter fuel payments to all, warning that 'means-tested benefits fail to reach people'. She told The Independent : 'The challenge I place to the minister is this: how will the winter fuel payments be distributed to ensure all vulnerable people get the support they need? Keir Starmer last month announces his intention to give more people access to winter fuel payments (AP) 'Over 3 or 4 million people who are eligible did not claim pension credit, the gateway to the winter fuel payment, last winter, as there is a reason why means-tested benefits fail to reach people – a point government should have learnt having thrown everything at trying to get people to claim. 'When 1 million more people are in fuel poverty, it shows that not just the eligibility needs changing but also the process through which to access the payments, or people will continue to go cold. 'This is why universalism works with the taxation system then clawing back money from those with high pensions or assets.' Winter fuel payments are a £300 payment to help with energy costs in the colder months. In July, the chancellor announced that pensioners not in receipt of pension credits or other means-tested benefits would no longer receive the benefit. As a result, just 1.5 million pensioners received the payment in winter 2024-25 – a massive drop from the 10.8 million pensioners who received it the year before. The cuts were deeply unpopular because they were seen as being disproportionately damaging to vulnerable people, and were criticised for leaving thousands of poorer pensions who were on the borderline missing out on the payment. In November, it was revealed that the government's own figures indicated it would force 100,000 pensioners into poverty in 2026. The policy was partly blamed for Labour's poor performance at the local elections – which saw them lose two-thirds of the council seats they had in 2021– as well as the previously Labour-held Runcorn and Helsby parliamentary seat to Reform UK. The cuts – combined with the £5bn welfare cuts and the party's decision to keep the two child benefit cap in place – have sparked growing concern over the direction of the government among Labour MPs.
Bloomberg
2 days ago
- Business
- Bloomberg
UK Minister Rules Out Full Reversal of Winter Fuel Payment Cuts
The UK government has ruled out fully reversing the £1.8 billion cut to winter fuel payments for pensioners announced last year but does plan to 'make more pensioners eligible,' Pensions Minister Torsten Bell told parliament on Wednesday. 'Will there be a universal winter fuel payment? The answer is no,' Bell said Wednesday in an evidence session with the House of Commons Work and Pensions Committee. 'Ninety-five percent of people agree that it's not a good idea that we have a system paying a few hundred pounds to millionaires, so we will not be continuing with that. But we will be looking at making more pensioners eligible.'
The Sun
4 days ago
- Business
- The Sun
Prime minister Keir Starmer hints Winter Fuel Payments could return this year – and we could find out ‘within days'
THE Prime Minister has suggested that cuts to the winter fuel payment could soon be reversed, possibly within days. Sir Keir Starmer has urged the Government to quickly clarify which pensioners will continue to receive the winter fuel payment in the future. 1 The Prime Minister hinted that an announcement about the payment might be made during the spending review on June 11. Last year, Chancellor Rachel Reeves slashed the benefit, worth up to £300 a year, in an effort to save money. Around 10million pensioners lost the payment, which had previously been given to everyone, including the very wealthy. The Government said the decision was necessary to address a £22billion "black hole" in public finances. As a result, the winter fuel payment is now only go to retirees on pension credit or a handful of other means-tested benefits. However, last month, in a partial U-turn, the Prime Minister suggested he wanted to see the payment go to more pensioners. The decision to means-test the payment was said to have come up on the doorstep with voters in recent local elections, and the Runcorn and Helsby by-election, which saw Reform UK win the constituency from Labour. Speaking on BBC Radio 4's Today programme, the Prime Minister said: "I want to look again at where the threshold is. That's for sure. I'll be clear with you. "In relation to that, I do think it was our duty to stabilise the economy and to fill in that £22billion black hole. And I'm not going to resile from that." Ministers "need to be absolutely clear where the money is coming from" before they set out details of a partial U-turn on the winter fuel payment, Sir Keir said. Could you be eligible for Pension Credit? He added: "But I take your point, which is that if we want to look again at which pensioners are eligible, then the sooner we have clarity on that, the better." Sir Keir did not rule out that further details could come at the spending review next week, only saying there were "lots of moving parts" in the review. Last week, Deputy Prime Minister Angela Rayner also signalled further details could come in the June 11 statement to the Commons, describing it as the "first opportunity" to do so. Elsewhere in his interview with the BBC, the Prime Minister gave a strong signal he is considering scrapping the two-child benefit cap. It remains unclear how the government plans to expand eligibility for the winter fuel payment. Experts, including former pensions minister Steve Webb, have proposed that the government could reinstate the payment for all pensioners but make it taxable, ensuring the wealthiest would repay up to 45% of the benefit. For now, all options appear to be under consideration. Meanwhile, an estimated 760,000 households eligible for pension credit have not made a claim, meaning they will miss out on this winter's fuel payment. Do you qualify for pension credit? Pension credit tops up your weekly income to £227.10 if you are single or to £346.60 if you have a partner. This is known as "guarantee credit". If your income is lower than this, you're very likely to be eligible for the benefit. However, if your income is slightly higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs. You could get an extra £82.90 a week if you have a disability or claim any of the following: Attendance allowance The middle or highest rate from the care component of disability living allowance (DLA) The daily living component of personal independence payment (PIP) Armed forces independence payment The daily living component of adult disability payment (ADP) at the standard or enhanced rate. You could get the "savings credit" part of pension credit if both of the following apply: You reached State Pension age before April 6, 2016 You saved some money for retirement, for example, a personal or workplace pension This part of pension credit is worth £17.30 for single people or £19.36 for couples. Claims for pension credit also open doors to a number of freebies and discounts. For example, pension credit claimants over 75 qualify for a free TV licence worth up to £174.50 a year. Claims for the benefit also provide eligibility to £25 a week cold weather payments and the £150 warm home discount. How do I apply for pension credit? YOU can start your application up to four months before you reach state pension age. Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234. You can get a friend or family member to ring for you, but you'll need to be with them when they do. You'll need the following information about you and your partner if you have one: National Insurance number Information about any income, savings and investments you have Information about your income, savings and investments on the date you want to backdate your application to (usually three months ago or the date you reached state pension age) You can also check your eligibility online by visiting first. If you claim after you reach pension age, you can backdate your claim for up to three months. How much is the winter fuel payment and how is it paid? If you were born before September 23, 1958 you could get either £200 or £300 to help you pay your heating bills for winter 2024 to 2025. You get £200 if you were born between September 23 1944, and September 22, 1958. If you were born before September 23 1944, you're entitled to £300. Most payments are made automatically in November or December. You'll usually get a letter in October telling you: If you do not get a letter or the money has not been paid into your account by the end of January, you'll need to contact the Winter Fuel Payment Centre on 0800 731 0160.
Bloomberg
30-05-2025
- Business
- Bloomberg
Labour's Migration Crackdown Puts Reeves' UK Headroom at Risk
The UK government's move to crack down on migration is set to all but wipe out Chancellor of the Exchequer Rachel Reeves's budgetary room for maneuver because of a lower tax take, according to analysis from Bloomberg Economics. Prime Minister Keir Starmer earlier this month outlined plans to reduce net migration to the UK through policies including banning the overseas recruitment of care workers and extending the period after which migrants can claim settled status to 10 years from five. The measure will lower net migration by around 100,000 per year, according to the government's estimates.
The Independent
29-05-2025
- Business
- The Independent
Starmer says he does not need ‘lessons' from Farage on working people
Sir Keir Starmer said he does not need 'lessons' from Nigel Farage on what life is like for working people as he took aim at the Reform UK leader and dodged questions about the two-child benefit cap. The Prime Minister launched a series of attacks on Mr Farage, saying that he wanted to 'protect' working people from what his party would do after they set out policy plans earlier this week. Sir Keir said Mr Farage's plans to spend 'billions upon billions upon billions, tens of billions of pounds, in an unfunded way' was an 'exact repeat of what Liz Truss did'. Speaking during a visit to a glass factory in the North West, the Prime Minister said the Clacton MP would not have protected jobs in industries subject to tariffs from the US. 'Can you trust him? Can you trust him with your future? Can you trust him with your jobs? Can you trust him with your mortgages, your pensions, your bills? And he gave the answer on Tuesday. A resounding no,' he said. Mr Farage had pitched Reform UK as the 'the party of working people' rather than Labour, and accused Sir Keir of having no connection to the working class. Sir Keir rejected this, saying: 'I know what it means to work 10 hours a day in a factory five days a week, and I know that because that is what my dad did every single working day of his life, and that's what I grew up with. 'So I don't need lessons from Nigel Farage about the issues that matter most to working people in this country.' Sir Keir dodged questions about whether he would like to get rid of the two-child benefit cap, saying he was looking at 'all options' to drive down child poverty. It came after Mr Farage had confirmed his party's support for scrapping the two-child benefit cap and fully reversing the winter fuel payment cuts. Asked why he was focusing so much on Reform UK, the Prime Minister said the Conservative Party has 'run out of road'. He said the choice for voters was now between Labour and Reform UK as he sought to draw comparisons between Mr Farage's economic proposals and the mini-budget from short-lived Tory prime minister Ms Truss that spooked the financial markets in 2022 and led to a spike in mortgage rates. The Institute for Fiscal Studies (IFS) said Reform UK's pledge to increase the income tax personal allowance to £20,000 a year could cost between £50 billion and £80 billion a year. The IFS's deputy director Helen Miller said the announcements on winter fuel payments and the two-child benefit cap were 'dwarfed' by the change to income tax personal allowance. Kevin Hollinrake, the shadow local government secretary, said the Prime Minister has 'problems wherever he looks'. He told Sky News: 'The public's lost interest in Labour. I mean, I don't think they were ever popular at the despatch box – we were just unpopular, and we've got a big job to do on that particular score, but I believe we can do it. 'But also Reform, the 'red wall' as we call it, the working class voters, have completely lost faith in Keir Starmer and (Chancellor) Rachel Reeves and others, not least because of the disgraceful stripping away of the winter fuel allowance.' Sir Keir is also facing danger from dissatisfied backbenchers, he said. 'So I can understand, he's trying to basically aim his fire all around him. It'll end up in a circular firing squad, I think, and it looks very bad for the Prime Minister right now.'
