Latest news with #WinterFuelPayment
The National
2 days ago
- Business
- The National
Rachel Reeves set to reject introducing wealth tax
The Chancellor has come under renewed pressure to levy a new tax on the savings, investments and property of the wealthy and in recent weeks senior Labour figures have refused to rule out the prospect. Transport Secretary Heidi Alexander refused to be drawn on the issue earlier this month by the BBC's Laura Kuenssberg, while Keir Starmer also declined to rule out the measure at PMQs after Tory leader Kemi Badenoch accused him of "flirting" with the idea. But Cabinet ministers have reportedly told The Times that a wealth tax is a 'non-starter', alleging wealthy people would simply leave the UK because of it. 'Wealth taxes don't work,' one cabinet minister said. 'Just look at what's happened in other countries that have introduced them. They just don't raise money, certainly not the kind of money that we're looking for.' READ MORE: Labour launch review into raising retirement age Another cabinet minister said a wealth tax was 'off the table'. They said: 'Wealthy people are mobile, they can move their assets to other more favourable jurisdictions.' Another government source did say though that Reeves is reluctant to rule out a wealth tax publicly. They said that other options, such as increasing capital gains tax, remain under consideration. Reeves is preparing to raise taxes in the Autumn Budget after the Government was forced by Labour MPs to abandon welfare cuts and partially reinstate the Winter Fuel Payment. The U-turn on both policies is expected to cost more than £6 billion. The Office for Budget Responsibility, the official forecaster, is also expected to downgrade Britain's growth prospects. Earlier this month ex-Labour leader Neil Kinnock suggested Reeves should bring in a wealth tax, alongside ex-Welsh Labour leader Mark Drakeford. Kinnock claimed it could bring in as much as £11bn for the Treasury. READ MORE: Zarah Sultana calls out 'racist' cartoon in Observer Eight nations have introduced wealth taxes but have subsequently scrapped them including Austria, Denmark, Germany, Finland, Iceland, Luxembourg, Sweden and France. However, four countries have retained wealth taxes in Norway, Spain, Switzerland and Colombia. The Chancellor has little wriggle room in the Autumn Budget because of Labour's manifesto pledge not to increase taxes on 'working people', encompassing income tax, VAT and National Insurance. Reeves was accused of breaching the pledge last year when she increased employers' National Insurance contributions to raise £24 billion.
Daily Mirror
2 days ago
- Business
- Daily Mirror
Winter Fuel Payment income threshold update for pensioners due up to £300
The DWP has confirmed that Winter Fuel Payments of up to £300 will be automatically issued to pensioners in November or December, with a new update on the clawback process issued The Department for Work and Pensions (DWP) announced earlier this month that 9 million people born before September 22, 1959 will receive between £100 and £300 to assist with escalating heating costs throughout the winter period. Winter Fuel Payments will be distributed automatically to qualifying pensioners during November or December. The Scottish Government will similarly distribute payments ranging from £101.70 to £305.10 to pensioners starting in November, implementing the updated approach adopted by the DWP. Pensioners earning £35,000 or less will qualify for the one-off payment, with recipients having the option to decline or repay it via the PAYE system or Self Assessment tax return. READ MORE: DNA site that helped woman find long-lost Japanese brother is now under £30 Treasury Minister James Murray provided a fresh update regarding the clawback procedure on Thursday following Independent MP John McDonnell's inquiry about the recovery mechanism for Winter Fuel Payments distributed to higher earners. In his written statement, Mr Murray explained: "The Government announced in June 2025 that the Winter Fuel Payment will be made universal in England and Wales from winter 2025. Subsequently, the Scottish Government and Northern Ireland Executive have confirmed that they will mirror the approach for England and Wales. "Winter Fuel Payments of £200 will be made for a household with someone of State Pension age and £300 for a household with someone aged 80 or over. They will be paid automatically to anyone who has not opted out of getting a payment." Discussing the intricacies of the income threshold, he clarified: "Individuals who are of State Pension age and have total income over £35,000 will have their Winter Fuel Payment recovered through the tax system. The amount recovered will be equal to the full value of the Winter Fuel Payment. "If a pensioner's total income is above the income threshold, it will be automatically recovered through PAYE, or through their Self-Assessment return if they pay tax that way." Mr Murray further stated: "The Government will publish further details of the operational impacts on HM Revenue and Customs of making these changes in a Tax Information and Impact Note at Budget 2025, alongside draft Finance Bill legislation on the tax recovery of the Winter Fuel Payment." Eligibility for Winter Fuel Payments You're entitled to a Winter Fuel Payment if you were born on or before September 22, 1959, and reside in England or Wales. Details on Pension Age Disability Payment can be fond here. Circumstances where you won't qualify You'll be disqualified if you: live outside England and Wales were in hospital getting free treatment for the whole of the week of 15 to 21 September 2025 and the year before that need permission to enter the UK and your granted leave says that you cannot claim public funds were in prison for the whole of the week of 15 to 21 September 2025 If you live in a care home While those living in care homes can receive the Winter Fuel Payment, you won't qualify if both of the following conditions are met: you get Universal Credit, Pension Credit, Income Support, income-based Jobseeker's Allowance (JSA) or income-related Employment and Support Allowance (ESA) you lived in a care home for the whole time from 23 June 2025 or earlier Payments DWP guidelines state: "You'll get a letter in October or November telling you how much Winter Fuel Payment you'll get, if you're eligible. If you don't receive a letter but believe you should, check whether you need to submit a claim." Be vigilant, as fraudsters may attempt to deceive you into making a claim via text message, urging you to click on a link. This is not an official DWP communication and should be disregarded. If you believe you need to make a claim, adhere to the guidance provided on here. The amount you receive depends on your date of birth and your circumstances during the 'qualifying week' of 15 to 21 September 2025. Any funds received will not impact your other benefits. If you live alone or no one in your household qualifies for the Winter Fuel Payment, you will receive either: £200 if you were born between September 22, 1945 and September 21, 1959 £300 if you were born before September 22, 1945 If you live with someone else who is eligible for the Winter Fuel Payment If you do not receive any of the benefits, you will receive a payment of: Pension Credit Universal Credit income-based Jobseeker's Allowance (JSA) income-related Employment and Support Allowance (ESA) Income Support If you do not get any of the benefits You will get a payment of: £100 if you and the person you live with were both born between September 22, 1945 and September 21, 1959 £100 if you were born between September 22, 1945 and September 21, 1959 but the person you live with was born before September 22, 1945 £200 if you were born before September 22, 1945 but the person you live with was born between September 22, 1945 and September 21, 1959 £150 if you and the person you live with were born before September 22, 1945 If you and your partner jointly claim any of the benefits One of you will get a payment of either: £200 if both of you were born between September 22, 1945 and September 21, 1959 £300 if one or both of you were born before September 22, 1945 The money will be paid into the bank account your benefits are usually paid into. If you get any of the benefits (not as part of a joint claim) You will get a payment of either: £200 if you were born between September 22, 1945 and September 21, 1959 £300 if you were born before September 22, 1945 If your income is more than £35,000 HMRC will take back all of your Winter Fuel Payment through either PAYE or your Self Assessment tax return. If you live in a care home If you are eligible you'll get either: £100 if you were born between September 22, 1945 and September 21, 1959 £150 if you were born before September 22, 1945 When you will get paid DWP said most payments will be made automatically in November or December. You should get a letter telling you: how much you'll get which bank account it will be paid into - this is usually the same account as your State Pension or other benefits Article continues below DWP added: 'If you do not get a letter or the money has not been paid into your account by 28 January 2026, contact the Winter Fuel Payment Centre.' Opting out of Winter Fuel Payment You can choose to opt out of getting all future Winter Fuel Payments. To opt out you need to contact the Winter Fuel Payment Centre before September 15, 2025. Full details on what you will need before contacting the Winter Fuel Payment Centre can be found on here.
Daily Record
4 days ago
- Politics
- Daily Record
Brian Leishman will still attend Labour conference despite suspension
EXCLUSIVE: The Alloa and Grangemouth MP said he will "still be campaigning for Scottish Labour for Holyrood" after losing the whip at Westminster. Brian Leishman has said that he will still attend Labour conference despite being suspended from the parliamentary party. The Alloa and Grangemouth MP said he will "still be campaigning for Scottish Labour for Holyrood" after losing the whip at Westminster. He was booted out of the Parliamentary Labour Party on Wednesday for voting against the government and criticising it in the media. Leishman told the Record: "The investigation is not expected to be concluded before conference. Conference is in September so we're looking into October. " I asked then about the suspension, but the couldn't answer that based on whatever investigation takes place." Asked if he will still be attending the party conference in September, Leishman replied: "Absolutely, I'll still be going to Liverpool. " I'll still be there. I'm a proud Labour Party member. " I'll be out campaigning for the fantastic candidates across my constituency for Clackmannanshire and Dunblane, and for Falkirk East. " I'll still be campaigning for Scottish Labour for Holyrood." Leishman was one of four Labour MPs who were booted out last week. He has been the most vocal critic among the Scottish Labour MPs since becoming an MP last year. He has slammed the government over the Grangemouth refinery closure, the Winter Fuel Payment cuts, the failure to compensate Waspi women and the slashing of disability benefits. But some of the things he has criticised the government for are Scottish Labour policy. Leishman has since ruled out joining the SNP or former Labour leader Jeremy Corbyn's new party - even though Leishman joined under his leadership. He told the Record earlier this week: "What matters most to me is true Labour Party values. "True Labour Party values, the home for that is in the Labour Party. "Labour's been the only party I've ever been a member of. "I joined in 2016, it's where my political home is. I want to get the Labour whip back because I still feel that the Labour Party is the vehicle for positive change in the country. "And that means redistributing power and wealth across society and actually trying to achieve a much more equal country." When asked if this meant he had ruled out joining the Nationalists, he said: "I am committed, rock solid, to the Labour Party. "The Labour Party is my home. I'm not happy about the way that a lot of things have been done, but I'm a Labour Party member and I'm proud to be one." When asked if he had considered joining Corbyn's new party, he said: "Your question about Jeremy and Zarah's party, it's the same answer."
The National
5 days ago
- Business
- The National
Unite canvass members on cutting ties with Labour
A survey has gone out to between 20,000 and 30,000 Unite reps across Scotland, England and Wales asking for their views on disaffiliating from the party. Unite ending its affiliation would inflict a major symbolic blow to Labour, severing its links with Britain's largest trade union. And it would deliver a punishing financial penalty, with the party currently enjoying an annual £1.4 million affiliation payment from the union. One source told The National: 'It looks like it's favourable to disaffiliate.' They said that the consultative survey was to 'test the waters' after the union voted to reconsider its relationship with the party should it continue to fail to back striking bin workers in Birmingham. In a dramatic measure last week, members voted to suspend Deputy Prime Minister Angela Rayner's (above) membership for telling workers to accept effective pay cuts. Any decision about whether to disaffiliate from the Labour Party would need to be taken by a members' vote at a special 'rules' conference, which is not scheduled until 2027. However, it is understood that pressure from lay members or committees within the union could push this forward to an earlier date. Severance would cause financial headaches for Labour, whose finances are reportedly feeling the pinch. READ MORE: Activist slams 'draconian' law as protester arrested at Palestine Action demo An internal document warns Labour is in a 'recovery plan' this year to address its 'difficult financial position' and must secure 'at least £4m to adequately resource the 2026 elections', according to the New Statesman. A union source said it would have been 'unthinkable' for Unite to deliberate on disaffiliation even a few years ago, but said repeated blunders from Labour in power – from the Birmingham strikes to cuts to the Winter Fuel Payment cut and disability – had brought the issue into focus. The revelation about the consultation, on which Unite have publicly remained quiet, could put pressure on the union's private discussions with Labour about their relationship. Sharon Graham, Unite's general secretary, this week told the New Statesman that she did not want to 'scupper' talks with Labour going on behind closed doors but added that it was becoming 'harder to justify the affiliation' with the party. Unite did not respond to requests for comment. Labour were approached for comment.
New Statesman
5 days ago
- Business
- New Statesman
Pensioners need a Summer Cool Payment
Photo byLondon is hotter than Brazil! And to be factual, London is always hotter than some parts of Brazil, because Brazil has some large mountains and extends thousands of miles into the southern hemisphere (where it is currently winter). But let's not let facts get in the way of a more general truth, which is that Britain is sometimes hotter than Africa! It's also sometimes colder than Moscow! And that is how weather works. But the important point is that when it's colder than Norway (assuming Norway is having a relatively warm spell), some people get free money. Should a similar system not exist for the summer? The Winter Fuel Payment is a tax-free £200 that has been given to all pensioners each winter since 1997. Winter Fuel has a nice ring to it; it suggests a puffing, red-cheeked septuagenarian carrying an armful of logs through the snow, and some bureaucratic Wenceslas stopping to cheer them along with a nice little cheque. It is a benefit some pensioners do sincerely need. But millions of other recipients don't need it, and in a country that is forecast to spend £175bn on pensioners' benefits this year (compared to, for example, £5bn in benefits for children), there is an argument that it might not be the best use of the country's funds. But when the government tried to remove it from all but the poorest pensioners, it met with furious opprobrium from the wood-burning classes and was forced into a U-turn that will cost £1.25 billion a year. Labour's own backbenchers insisted the payment was necessary, having been horrified by the effect that means-testing the payment had on their party's performance in the local elections. But now it's hotter than some parts of Australia, probably, and this suggests a policy idea: having decided that the nation's pensioners – more than three million of whom live in a household with assets over £1,000,000 – really do need an extra £200 in the winter, those who argued for a universal Winter Fuel Payment should now consider whether a summer air-conditioning subsidy is also needed. After all, hot weather is effectively a wealth tax. The employed may spend their days in air-conditioned offices (or the sea, if they're a marine biologist). Where do retirees go when it's baking, and they're not on holiday? Sainsbury's or Waitrose, of course – both are Baltic at this time of year. But the extra time one spends gliding their deliciously cool aisles adds up to a lot more shopping. At home, Victorian houses are notoriously poorly insulated, and the garden must be hosed daily. The cheapest Dyson fan is £250. Fever-Tree is £2.25 a bottle. Why isn't the triple lock taking all these extra expenses into account? It's not much to ask. Pensioners who have paid their way through society, or feel that they have, are surely entitled to a Summer Cool Payment of £200 per household, or £400 if they have to use the Central Line. Just £200 could pay for a month's supply of Evian facial spray, a pair of linen trousers and one of those neck fans that looks like a big pair of headphones. And it's not like the increasingly extreme weather caused by climate change is in any way the fault of today's retirees, is it? [See also: In defence of Lord Hermer] Subscribe to The New Statesman today from only £8.99 per month Subscribe Related
