Latest news with #winterfuelpayments
The Guardian
5 hours ago
- Entertainment
- The Guardian
From Labour on winter fuel payments to a tractor encounter: Edith Pritchett's week in Venn diagrams
From Labour on winter fuel payments to a tractor encounter: Edith Pritchett's week in Venn diagrams – cartoon
The Independent
3 days ago
- Business
- The Independent
Millionaires should not get subsidy for energy bills, says Treasury minister
'Millionaires' should not get 'subsidy for their energy bills from the Government', a Treasury minister has suggested. Darren Jones has said that winter fuel payments will 'still be targeted to those that need it the most'. Sir Keir said at Prime Minister's questions last week that he wants to restore the payments to more pensioners, following pressure from campaigners, signalling a partial U-turn on one of Labour's first announcements in Government. He claimed that the UK's improving economic prospects could allow for the move at the next fiscal event. The partial U-turn came as ministers are continuing to face calls to scrap the two-child benefit cap. Speaking to Sky News on Thursday evening, Chief Secretary to the Treasury Mr Jones was asked about Reform UK's commitments on both the winter fuel and benefit cap policies. 'All of those things cost money,' Mr Jones said. 'It's right that we set out the detail and how we're going to pay for those in a proper and orderly way.' He added: 'We're sticking to the principle that millionaires shouldn't be getting subsidy for their energy bills from the government, so winter fuel payments will still be targeted to those that need it the most.' Mr Jones also touched on the Government's approach to child poverty, telling the same programme that 'we're a Labour government we want child poverty to be falling in this country, not rising'. 'Of course, we want to help families lift themselves out of poverty.' Last summer, Rachel Reeves announced that the previously universal winter fuel payment would be means-tested. The policy was blamed for the party's collapse in support since last year's general election, and campaigners were challenged about it on the doorsteps during May's local elections. Reform UK leader Nigel Farage confirmed earlier this week that his party would support scrapping the two-child benefit cap and also reverse the winter fuel payment cuts. Sir Keir said he is looking at 'all options' to drive down child poverty when asked if he would like to get rid of the two-child benefit cap on Thursday. Speaking on a visit to the North West, the Prime Minister said: 'There isn't a single bullet, but I'm absolutely determined that we will drive this down, and that's why we'll look at all options, always, of driving down child poverty.' Conservative leader Kemi Badenoch has accused the Labour and Reform leaders of asking people to fund 'unlimited child support for others' by scrapping the two-child cap. Writing in the Daily Mail, she said that the Conservatives are the 'only serious party of sound money'. 'Britain deserves party leaders who don't treat economics like a branch of showbiz, an announcement for a nice headline and forget about the deficit,' she said.
BBC News
3 days ago
- Business
- BBC News
Millionaires shouldn't get winter fuel payments, minister says
Millionaires should not be getting winter fuel payments, a senior minister has said, as the government considers how to ease cuts to the allowance for Jones, chief secretary to the Treasury, said the payments would be "targeted to those that need it the most".It comes after Prime Minister Sir Keir Starmer U-turned on the withdrawal of the allowance from millions of pensioners, after a backlash over the Keir said "more pensioners" would be able to claim the payments again, under changes to be made at the Budget this autumn. But the prime minister did not specify how many pensioners would be entitled to claim the payments, when the change would take effect, or how much it would cost the leader Kemi Badenoch has also said she does not believe "millionaire" pensioners should be able to claim the winter fuel Reform UK, the Liberal Democrats and the Green Party have called for the winter fuel allowance to be restored in than 10 million pensioners lost out on payments worth up to £300 last year after the Labour government restricted eligibility to those who qualify for pension credit and other income-related asked on Sky News if ministers should be clearer on how they intend to change winter fuel payments, Jones said "it was right that we set out the detail and pay for those things in an orderly way".He added: "We're sticking to the principle that millionaires shouldn't be getting subsidy for their energy bills from the government, so winter fuel payments will still be targeted to those that need it the most".He did not provide further details of who would qualify as a millionaire, adding that the eligibility threshold would be reviewed in the "coming months". The winter fuel payment is a lump sum of £200 a year for households with a pensioner under 80, or £300 for households with a pensioner over was previously paid in November or December to all pensioners who claimed it, regardless of their income or 10.3 million pensioners lost out last year after the Labour government made changes to save an estimated £1.4bn, with ministers arguing immediate savings were needed as the Conservatives had left a "hole" in the public pressure to change course has grown in recent weeks, with some Labour MPs and councillors blaming the policy for the party's losses at last month's local elections in parts of England. 'Hassle' The Institute for Fiscal Studies (IFS), a think tank, has suggested a number of ways the government could expand who is able to claim the income threshold for pension credit, the main benefit to qualify to continue to receive winter fuel payments, is currently £11,800 a year for individuals and £18,023 for pensioner IFS said a new means-test would create "hassle" for pensioners and "would no doubt result in many not claiming".It would also "imply a lot of administrative cost for what is a fairly small benefit", the IFS Foundation, a think tank, said there were "huge doubts" over how a new means-test would work, and estimated that expanding eligibility for pension credit by 10% could cost £2.5bn, more than the original winter fuel cut was meant to save.
Telegraph
6 days ago
- Business
- Telegraph
IMF upgrades UK growth but warns of looming trade war hit
Last week, the Prime Minister announced an about-turn on his flagship policy to withhold winter fuel payments from some pensioners, while the Government is also considering lifting the two-child limit on benefits to families. Mr Eyraud said: 'We take note of the announcement of the PM to change the winter fuel payments. From the IMF perspective, it is very important that the authorities stay the course, that they stick to their commitment to reduce fiscal deficits gradually over the medium term. 'The authorities will need to offset that with other savings measures somewhere else. Our view is that these other measures could be both on the tax or on the spending side.' The IMF also warned that finances were on a dangerous path in the longer term, as rising pension and healthcare spending would leave future governments having to choose between significantly raising taxes or slashing spending. Ms Reeves hailed the upgraded forecast. She said: 'The UK was the fastest-growing economy in the G7 for the first three months of this year and today the IMF has upgraded our growth forecast. 'We're getting results for working people through our Plan for Change – with three new trade deals protecting jobs, boosting investment and cutting prices, a pay rise for three million workers through the National Living Wage, and wages beating inflation by £1,000 over the past year.'
Yahoo
6 days ago
- Business
- Yahoo
Rachel Reeves under pressure to find money to ease welfare squeeze
Labour's Rachel Reeves is facing increasing pressure to secure funding for the reversal of the winter fuel payment cuts and address child poverty, amidst mounting demands from within the party. Reeves will present her spending review next month, outlining departmental funding for the upcoming years, which includes £113 billion for infrastructure projects aimed at transforming the UK's housing and transport systems. However, Reeves is being urged to explain how she plans to finance Labour leader Sir Keir Starmer's pledge to reinstate winter fuel payments for pensioners. Additionally, she is facing calls to scrap the two-child benefit cap, estimated to cost around £3.5 billion. READ MORE: 16-year-old dies after being stabbed during 'violent' beach brawl READ MORE: Mike Tindall calls for help as he issue update on sad family health news Proposed measures aimed at reducing the welfare bill and encouraging people on benefits to find work may also be scaled back due to opposition from Labour backbenchers, adding to Reeves' challenges. Health minister Karin Smyth described the Prime Minister's announcement to expand winter fuel payments to more pensioners as evidence of a "the sign of a government that is listening". In an interview with BBC Radio 5 Live, Smyth stated: "The Chancellor and the Treasury will have to review all of these in light of the key mission, which is to grow the economy and maintain economic stability." She added that policymakers must weigh the costs and benefits of their decisions, saying: "We know government is hard, and I think listening, looking at policies, how they impact, weighing up those costs and benefits, is exactly the right thing to do." In a separate interview with LBC Radio, Smyth emphasized that addressing child poverty requires a comprehensive approach, saying measures must be considered "in the round". Officials have maintained that there isn't a single "silver bullet" to tackle child poverty. Ms Smyth commented: "We are looking at all measures to improve money in people's pockets and to reduce poverty, in the round, as part of the spending review. That's important, that we take a long-term look at this issue. "The last Labour government lifted those children out of poverty. Of course it's a central mission, that opportunity for children and for their families, of course it's a central mission of this Labour Government." The current policy restricts parents to receiving support for a maximum of two children within the universal credit framework. Labour MP Stella Creasy, known for her campaigning efforts, has stated that abolishing the two-child limit could "take 350,000 children out of poverty overnight". She further noted: "It's worth reflecting on the fact that 60% of those kids are in households where somebody is in work,". The Government's strategy to address child poverty, initially expected in spring, has been postponed to autumn to coincide with the Chancellor's budget announcement. Ms Creasy remarked: "What really matters is that child poverty strategy, because none of us want to be dependent on the welfare system as a way of helping every family make ends meet. "And I am painfully aware of how many people in my local community still have too much month at the end of their money." The Prime Minister is reportedly mulling over "tweaks" to the planned welfare cuts as he confronts the possibility of a backbench rebellion against the measures, which are intended to save £5 billion a year for the public coffers. It's understood from The Times that benefit recipients might be granted extended "transitional periods" to find alternative support if they are adversely affected by the changes. Concerns are growing among MPs, with speculation that more than 100 could defy the party line over the proposed tightening of criteria for the personal independence payment (Pip), aimed at encouraging more working-age benefit claimants into employment. Peter Lamb, Labour MP for Crawley, expressed his opposition on BBC Radio 4's Westminster Hour, stating, "I will be voting against anything which is going to restrict access to Pip further than it's currently restricted." He also voiced that many within the Labour Party are "deeply uncomfortable" with the Government's plans. In another development, Nigel Farage, leader of Reform UK, is poised to pledge the full reinstatement of the winter fuel payment and the abolition of the two-child benefit limit this week. Reform insiders suggest this strategy is designed to win over Labour's traditional working-class base. As Ms Reeves prepares a multi-year spending review amid both financial and political strain, which is anticipated to heighten disputes within the Cabinet over cuts to certain departmental budgets, she faces an intricate balancing act. Speaking to the Guardian, she emphasised, "We are building homes, building infrastructure, whether that's transport or energy. I do want to make sure that we're spending government money to create jobs, apprenticeships, and build supply chains in this country." She outlined forthcoming plans: "At the spending review coming up in June, we will invest more in capital, and we're going to invest £113 billion more in capital spending than the plans we inherited from the previous government. I do want to make sure that every penny of that money works for the British economy and creates jobs." Meanwhile, Sir Mel Stride, the Shadow Chancellor, criticised Labour, saying, "Labour have already lost control of the public finances and abandoned any pretence of fiscal responsibility." He continued pointing out potential issues: "Now they are looking at loading up billions more in welfare spending, paid for either by higher taxes for working families or through yet more borrowing." Stride brought attention to additional fiscal concerns: "When added to the likely cost of their panicked climbdown on winter fuel payments, the Chancellor faces a potential £5 billion black hole." He did not mince words regarding her performance: "Rachel Reeves's credibility is having new holes torn in it by the day."
