UK (Parliament Politics Magazine) – Rachel Reeves confirms return of winter fuel payments with raised threshold, aiming to help more pensioners after criticism over Labour’s earlier cut plans.
As reported by The Guardian, Chancellor Rachel Reeves confirmed the government will reinstate certain winter fuel payments after backlash over withdrawal plans.
What did Rachel Reeves say about winter fuel payments?
UK Chancellor Rachel Reeves said the government will soon reveal updates to the £11,500 eligibility limit for winter fuel payments.
The chancellor may reveal the updated threshold at next week’s spending review, despite Downing Street not viewing it as a fiscal event.
During her address in Rochdale, Ms Reeves told reporters,
“We have listened to the concerns that people had about the level of the means test, and so we will be making changes to that; they will be in place so that pensioners are paid this coming winter.”
She said,
“We’ll announce the details of that and the level of that as soon as we possibly can. But people should be in no doubt that the means test will increase and more people will get a winter fuel payment this winter.”
The chancellor pointed to internal cabinet strain, revealing she had to reject some spending bids while trying to address the consequences of
“14 years of Conservative maltreatment of our public services, our public realm, and our economy.”
Ms Reeves stated,
“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.”
The chancellor said,
“Over the next week, you will hear a lot of debate about my so-called self-imposed fiscal rules,”
adding,
“Now, contrary to some conventional wisdom, I didn’t come into politics because I care passionately about fiscal rules. I came into politics because I want to make a difference in the lives of working people.”
She cited Liz Truss’s 2022 mini-budget that caused soaring interest rates, stating,
“No one should need to be told about the dangers of reckless borrowing for the financial security of ordinary families.”
Ms Reeves added,
“Fiscal rules are an indispensable safeguard for working people, and that is why my rules are non-negotiable.”
What did Torsten Bell say about universal winter fuel payments?
Torsten Bell, the pensions minister, ruled out bringing back universal winter payments, citing government concerns over fairness to wealthier pensioners.
Addressing the work and pensions committee, Mr Bell said,
“Is there any prospect of a universal winter fuel payment? The answer is no. The principle I think most people, 95% of people agree, is 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. But we will be looking at making more pensioners eligible.”
What did Keir Starmer say about winter fuel payment eligibility?
Last month, Prime Minister Sir Keir Starmer announced plans to expand winter fuel payment eligibility following a backlash against Labour’s unpopular policy.
Downing Street did not confirm when the U-turn would take effect this winter. It is also unclear how many of the roughly 10 million pensioners would regain payments.
In October last year, Keir Starmer’s government set new fiscal rules. The goal is a balanced budget or surplus by 2029-30. Financial debt must fall relative to the economy. Welfare spending is also restricted under these guidelines.
What is the plan to restore winter fuel payments for pensioners?
Ministers are considering reinstating winter fuel payments as a universal benefit. They intend to recoup funds from high-income pensioners via tax returns. Officials say a new means test would be complicated to implement.
George Osborne, the ex-Conservative chancellor, applied a comparable approach by limiting child benefit for affluent families. Treasury officials are finalizing the level for the new winter fuel threshold.
What did Rachael Maskell say about winter fuel payment cuts?
Labour’s Rachel Maskell slammed the partial winter fuel payment restoration, saying means-tested benefits often miss those in need.
She said,
“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?”
Ms Maskell stated,
“Over 3 or 4m 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.”
She added,
“When 1m 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.”