Latest news with #means-testing
CNA
22-07-2025
- Business
- CNA
About 20,000 people received incorrect subsidies, grants due to issue with means-testing system: MOH
SINGAPORE: About 20,000 people received incorrect subsidies or grants after a "processing issue" in a means-testing system managed by the Ministry of Health (MOH). Of these, about 2,000 people received lower-than-intended subsidies. The total value of under-subsidies is about S$2 million, averaging around S$1,000 per affected person, the ministry said in response to CNA's queries. The remaining 18,000 received higher subsidies, with the total value amounting to about S$7 million – around S$390 per affected individual. In a media release on Monday (Jul 21), MOH said it has completed the reassessment of the affected people. "MOH will adjust their means-test and subsidy tiers back to the intended levels from Jul 21, 2025 onwards," it added. For those who received an over-subsidy, they will not have to return the excess subsidy or grant amounts that have already been paid. "For the minority of individuals who received lower than intended subsidies and/or grants, agencies will make good the difference," said the ministry. The means-testing system managed by MOH, called the Household Means Eligibility System (HOMES), typically uses income information from the Inland Revenue Authority of Singapore (IRAS) to assess individuals with business income. However, in January 2025, the system could not appropriately account for the business incomes of selected individuals following changes in the data processing timelines. This led to "inaccurate means-testing" for individuals with business incomes and members of their households between Jan 1 and Jan 27, MOH said. Affected schemes and what to expect AFFECTED MOH SCHEMES CareShield Life and MediShield Life premium subsidies and Additional Premium Support (APS) Affected individuals will receive the correct premium subsidies at their next policy renewal. APS recipients will continue to have their premiums covered based on their approved validity period. All affected individuals will be notified via letter. No action is required on their part. Community Health Assist Scheme (CHAS) Affected CHAS cardholders will receive letters detailing any required actions, if any. Subsidies for long-term care services Affected individuals will receive the corrected subsidies from the next billing cycle or payout date. Seniors' Mobility and Enabling Fund, Equipment Rental Scheme, Home Caregiving Grant and ElderFund Affected individuals will be informed of their adjusted subsidy or payout. Subsidies for day surgeries, inpatient services, specialist outpatient clinics, polyclinic drugs/vaccines and community hospital services From July 2025, public healthcare institutions will notify individuals who received lower-than-intended subsidies and adjust their bills accordingly. Reimbursements will be issued where applicable. No action is required from individuals. AFFECTED NON-MOH SCHEMES ECDA: Preschool subsidies and early intervention schemes ECDA will inform affected parents, preschools and early intervention centres of the adjusted subsidies from Jul 22. The corrected subsidies will take effect from August 2025 onwards. IMDA: DigitalAccess@Home Scheme (DAH) The affected households will be informed from Jul 22. Households who were under-subsidised will receive the correct subsidies and be automatically reimbursed. Those with higher subsidies will continue to receive them for the remaining validity period of the household's current DAH award. Their eligibility will be reviewed when they apply for a new DAH award. MOE: Higher education bursaries and Kindergarten Care (KCare) additional subsidies The Institutes of Higher Learning will inform affected students. No action is required from the students. Affected children attending MOE KCare will have their corrected subsidies applied from August 2025 and will be notified accordingly. SG Enable will work with service providers to inform the affected individuals receiving the subsidies from Jul 22. The corrected subsidies will apply from August 2025 onwards. Around 19,000 people who are under schemes administered by MOH were affected, the Health Ministry said. Another 1,000 people were also affected despite being under other schemes managed by the Early Childhood Development Agency (ECDA), Ministry of Social and Family Development (MSF), Ministry of Education (MOE), and Infocomm Media Development Authority (IMDA). This is because "HOMES also provides means-testing results for selected subsidy schemes across the government", MOH added. Those affected by the issue represent less than 3 per cent of all individuals means-tested during the Jan 1 to Jan 27 period, the ministry said. MOH said that the agencies will reach out to inform affected individuals progressively, and there is no action required on their part.
BBC News
09-06-2025
- Business
- BBC News
More than 75% of pensioners to get winter fuel payment as Reeves confirms major U-turn
Update: Date: 12:29 BST Title: Reeves: We've listened to pensioners' concerns Content: We've just seen the chancellor answering questions from reporters. She says the government has listened to people's concerns about the government's decision last year to means-test the allowance The Treasury has been able to widen eligibility due the the "stability" the government has brought to the economy, she says. Reeves adds that the detail of how the change in policy will be costed will come in the autumn Budget. Update: Date: 12:14 BST Title: How the winter fuel U-turn unfolded - a timeline Content: Labour's decision to cut the payment was widely criticised within and outside of government - including via protests at Westminster Update: Date: 12:10 BST Title: 'No pensioner on a lower income will miss out': Reeves' statement in full Content: Here is the full statement from Chancellor Rachel Reeves, shared with us by the Treasury: '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.' Update: Date: 12:05 BST Title: Labour moves to rectify what many see as its biggest misstep - but is it too little too late? Content: Chris MasonPolitical editor The final act in this slow motion U-turn has played out. The arc of this row runs to almost a year. It was late July last year when I was among a bunch of reporters called into the Treasury to question the then new chancellor about her out of blue policy to take the winter fuel payment from millions of pensioners. Ever since, Labour MPs have grumbled they've been taking heat for it. Two and a half weeks ago the prime minister said the threshold would be moving. Last week the chancellor said the new recipients would get it this coming winter. We now know who will qualify and who will have to pay it back. A couple of thoughts: could the government have done just this in the first place? Some privately say absolutely. Others say there was genuinely real concern in the Treasury about the state of the books and they felt compelled to do something to reduce so called "in year" costs. Secondly: once they decided to move, they have moved pretty quickly, albeit announcing the U-turn in iterative steps, one week after another. We are not being kept waiting until the Budget in the autumn, or even the Spending Review on Wednesday - here we have it, the new threshold. So, how will the government pay for it? It is projected to cost £1.25bn. Ministers say there won't be a "permanent" increase in borrowing. So how much borrowing will there be, and for how long? And which other budgets may be squeezed as a result? For many within Labour, this whole debacle was the single biggest misstep of the party's first year in office - they will now hope to put it behind them. But it's one of those things forever likely to remain in the biography of this government, with questions asked of Rachel Reeves about it. Update: Date: 12:03 BST Title: Remind me, what's happening in Scotland and Northern Ireland? Content: Kevin PeacheyCost of living correspondent This latest announcement by the UK government affects pensioners in England and Wales, but as promised in our last post - here's how Scotland and Northern Ireland responded to this policy when it was introduced last year. The Scottish government has already announced plans for a new winter heating payment "for every single Scottish pensioner" to be introduced ahead of winter 2025. Pensioners in Scotland in receipt of qualifying benefits, such as Pension Credit, will receive payments of £200 or £300 depending on their age, while other households will receive £100. Holyrood also announced some extra council funding for welfare, as well as additional money for the Warmer Homes Scotland Scheme, external. In Northern Ireland, Communities Minister Gordon Lyons previously said funding constraints meant the Stormont government also had to change its rules. He later said affected pensioners would receive of one-off payment of £100 to help with heating costs. Update: Date: 12:01 BST Title: Pensioners with income of £35,000 or below to get payment Content: Rachel Reeves has announced changes to the winter fuel payment - here's the finer detail: Who's eligible this winter? Everyone over the state pension age in England and Wales with an income of, or below, £35,000 a year. Scotland and Northern Ireland announced their own updates in light of the government's cuts last year - we'll bring you more on that in our next post. How many people will benefit? The government puts the figure at nine million - or more than 75% of pensioners across the two countries. How much will be paid? As before, £200 per household with a pensioner under 80, or £300 per household where there is someone over 80, will be made automatically. What's changed? Following cuts last year, the payment was limited to those receiving pension credit or another means-tested benefit, which meant millions of older people missed out. Update: Date: 12:00 BST Title: Chancellor confirms major government U-turn on winter fuel payments Content: More than three-quarters of pensioners in England and Wales will now be entitled to the winter fuel payment, Rachel Reeves has just announced, in a major U-turn on one of the government's first - and most controversial - policies. Last July, Reeves announced cuts to the winter fuel payment - a lump sum of £200 a year for households with a pensioner under 80, or £300 for households with a pensioner over 80 - in a bid to save an estimated £1.4bn. It drew widespread criticism, including from within Starmer's own party. We'll have more details, including what the chancellor has said, in our next few posts. Stay with us.
Sky News
09-06-2025
- Business
- Sky News
Winter Fuel payments to extend to pensioners on incomes of £35,000 or less
Why you can trust Sky News Winter fuel payments will extend to everyone over the state pension age with an income of or below £35,000 a year, Chancellor Rachel Reeves has announced. The Treasury said the change will cost around £1.25bn in England and Wales but still save £450m if the universal allowance had been kept. Dropping the benefit for all pensioners was one of the first things Labour did in government, despite it not being in their manifesto. The change meant only those on pension credit or other benefits were eligible - a deeply unpopular move that was widely blamed on the party's poor performance in May's local elections. Ms Reeves 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." The government signalled its intention to widen eligibility last month, but no detail was given on what the new threshold might look like. It is still not clear how the new policy will be funded, with the costs to be accounted for in the autumn budget. The Treasury said that by setting the threshold at an income of £35,000, over three-quarters of pensioners - around nine million people - will benefit. They described the new threshold as being above the income level of pensioners in poverty and broadly in line with average earnings, "balancing support for lower income pensioners with fairness to the taxpayer". No pensioner will need to take any action as they will automatically receive the payment this winter.
Yahoo
04-06-2025
- Business
- Yahoo
No prospect of universal winter fuel payment, says pensions minister
There is no prospect of returning to a universal winter fuel payment, pensions minister Torsten Bell has said. 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% 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.' Mr Bell said he did not have 'lots to add' to what Prime Minister Sir Keir Starmer had said recently about the allowance. He told the MPs: 'Of course the announcement, as and when it's made, will be made to the House.' Sir Keir recently signalled a partial U-turn over the Government's decision to strip winter fuel payments from millions of pensioners. The Prime Minister said 'as the economy improves', he wanted to look at widening eligibility for the payments worth up to £300. But officials have been unable to say how many more pensioners would be eligible. The decision to means-test the previously universal payment was one of the first announcements by Chancellor Rachel Reeves after Labour's landslide election victory last year, and it has been widely blamed for the party's collapse in support. Watch live 🔴 — Work & Pensions Committee (@CommonsWorkPen) June 4, 2025 The Government has insisted the policy was necessary to help stabilise the public finances, allowing the improvements in the economic picture which Sir Keir said could result in the partial reversal of the measure. On July 29 2024, the Government announced that from winter 2024, winter fuel payments would be dependent on receiving another means-tested benefit, as part of measures to fill a 'black hole' in the public finances. This meant the number of pensioners receiving the payment was reduced by around 10 million, from 11.4 million to 1.5 million. Pension credit is the primary benefit by which pensioners can receive the winter fuel payment. The credit tops up incomes for poorer pensioners and acts as a gateway to additional support, including the winter fuel payment.
The Independent
04-06-2025
- Business
- The Independent
No prospect of universal winter fuel payment, says pensions minister
There is no prospect of returning to a universal winter fuel payment, pensions minister Torsten Bell has said. 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% 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.' Mr Bell said he did not have 'lots to add' to what Prime Minister Sir Keir Starmer had said recently about the allowance. He told the MPs: 'Of course the announcement, as and when it's made, will be made to the House.' Sir Keir recently signalled a partial U-turn over the Government's decision to strip winter fuel payments from millions of pensioners. The Prime Minister said 'as the economy improves', he wanted to look at widening eligibility for the payments worth up to £300. But officials have been unable to say how many more pensioners would be eligible. The decision to means-test the previously universal payment was one of the first announcements by Chancellor Rachel Reeves after Labour's landslide election victory last year, and it has been widely blamed for the party's collapse in support. The Government has insisted the policy was necessary to help stabilise the public finances, allowing the improvements in the economic picture which Sir Keir said could result in the partial reversal of the measure. On July 29 2024, the Government announced that from winter 2024, winter fuel payments would be dependent on receiving another means-tested benefit, as part of measures to fill a 'black hole' in the public finances. This meant the number of pensioners receiving the payment was reduced by around 10 million, from 11.4 million to 1.5 million. Pension credit is the primary benefit by which pensioners can receive the winter fuel payment. The credit tops up incomes for poorer pensioners and acts as a gateway to additional support, including the winter fuel payment.
