Starmer announces U-turn on winter fuel payment cuts 6 hours ago Paul Seddon Political reporter Sir Keir Starmer has announced plans to ease cuts to winter fuel payments, in a U-turn following mounting political pressure in recent weeks.
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 80.
Former Labour prime minister Gordon Brown, who introduced winter fuel as a universal benefit when chancellor, said Sir Keir was “right” to reconsider.
Triple lock Winter fuel payments, introduced in 1997, were billed as a way to guarantee pensioners would be able to heat their homes during colder months.
Winter fuel payments are devolved, with the UK government responsible for payments in England and Wales.
Starmer declares a reversal of the winter fuel payment reductions.
Six hours ago.
Paul Seddon. .
journalist covering politics.
In a U-turn after weeks of growing political pressure, Sir Keir Starmer has announced plans to relax winter fuel payment cuts.
The pension top-up became means-tested last year, resulting in over 10 million pensioners losing out on payments of up to £300.
At Prime Minister’s Questions, Sir Keir stated that ministers would raise the bar so that “more pensioners” could reapply.
However, it is not yet known when the changes will be implemented or how many people will be eligible for the payments again.
The policy would be altered at the autumn budget, according to Sir Keir, who also stated that ministers would only “make decisions we can afford.”.
For households with a pensioner under 80, the winter fuel payment is a lump sum of £200 annually; for households with a pensioner over 80, it is £300.
Previously, it was paid to all pensioners in November or December. However, last year, 10 million people lost out because the government limited eligibility to those who were eligible for pension credit and other income-related benefits in an effort to save an estimated £1 billion.
Unions and pensioner charities strongly criticized the decision, which was made soon after Labour took office in July of last year.
However, there has been mounting pressure in recent weeks to alter the plan, as some Labour MPs and council members blamed the policy for the party’s defeats in the local elections held in various parts of England last month.
Even MPs who supported the policy claimed that it was the most commonly brought up topic by the public, and complaints from MPs on the Labour left in general spread throughout the party.
Sir Keir was “right” to change his mind, according to former Labour Prime Minister Gordon Brown, who made winter fuel a universal benefit while serving as chancellor.
Speaking to the BBC, he stated: “If a pensioner has served the nation their entire lives and is unable to pay for heating because they lack the necessary funds, they should not be pushed into poverty.
Keir is essentially saying that we will treat pensioners fairly. “.
The “longest U-turn”.
It had been believed that a shift in strategy could be verified at the government’s spending review next month, when department budgets for the upcoming years are announced.
In response to a Labour backbencher during Prime Minister’s Questions, Sir Keir unexpectedly confirmed the policy U-turn.
In response to the announcement, Tory leader Kemi Badenoch waited until the fourth of her six allotted questions before bringing it up.
Afterwards, she denied being caught off guard, telling reporters that she “had to talk” about rising inflation rates first and that her questions were “not what people out there care about.”.
She praised the “inevitable” U-turn but urged the government to present “early” details of their new strategy, stating that it would be too late to implement changes this winter if the budget was released in the fall.
She stated that “millionaires” shouldn’t be eligible again, but she didn’t say where she wanted the new cutoff point to be set.
The leader of the Liberal Democrats, Sir Ed Davey, praised the government’s “longest U-turn” and demanded that the cuts be undone “in full.”.
queries about eligibility.
In order to continue receiving winter fuel payments, pensioners must meet the income threshold for pension credit, which is currently £11,800 for individuals and £18,023 for couples.
Ministers will now face both practical and political challenges in creating a new income threshold in advance of the autumn budget.
Relating it to lower council tax bands or extending eligibility to individuals receiving housing or disability benefits are two potential solutions put forth by policy experts and commentators.
According to the think tank Resolution Foundation, there were “huge doubts” about developing a new, specific means test to be eligible for the top-up.
It added that increasing pension credit eligibility by 10% would be the simplest solution, but it warned that this would come at a cost of £2.05 billion in additional expenses, which would exceed the savings from the original policy.
While applauding the shift in strategy, Age UK, one of the charities fighting the cuts, stated that any new system should guarantee that pensioners on “low and modest incomes” could continue to receive their benefits.
When reporters asked when the changes would be implemented, the prime minister’s spokesperson said, “Obviously, we want to deliver this as quickly as possible,” but he declined to guarantee that they would be implemented this winter.
“We will not make decisions until we are able to provide information about the source of funding, the method of payment, and the affordability of the project,” he continued.
Triple locks.
The introduction of winter fuel payments in 1997 was justified as a means of ensuring that pensioners would have access to heat for their homes during the winter months.
Since 2010, the primary state pension has been further protected by the “triple lock” policy, which increases pensions annually by the highest of inflation, average earnings, or 2.5 percent.
State pensions increased by 41% this year, which translates to an annual increase of £363 for basic pension recipients and £472 for new pension recipients.
The UK government handles winter fuel payments in England and Wales, which are devolved.
Despite reducing payments in response to Labour’s cuts last winter, the Northern Ireland Executive maintained a £100 top-up for all pensioners.
Those who were no longer eligible for the main payment would receive a universal £100 payment next winter, according to plans by the Scottish government, which also means-tested payments last year.
