Rahel reeves has confirmed Major U-turn He took with almost all pensioners Winter fuel payment From last year was set to return them.
In a judgment that can spend the Treasury £ 1.25BN, Chancellor Has announced that all those who qualify for it state pension On income of £ 35,000 or less Will qualify now For winter fuel payment.
This means that it will get back 9 million out of about 11 million to lose annual support last year. Other 2 million will either be To withdraw or return benefits,
This announcement comes exactly two days before being a Chancellor Is ready to publish his expenses review After a difficult negotiation on cuts with government departments.
When Decision announced To throw Winter fuel payment Soon after millions of pensioners Labor Last year took power, Chancellor claimed that the “tough decision” was left due to £ 22bn hole finance The previous Tory by the government. The original decision was estimated to save the government’s £ 2BN.
However, there was a large -scale political response against the decision with Labor MPs, convicting the defeat in Runcorn. By -election And insulting the decision on the decision in local elections in May.
To connect the problems of Ms. Reeves, the office of the budget responsibility (OBR) refused to agree that there was £ 22bn black hole in Finance, instead it was suggested that it was £ 7BN.
Announcing the decision, Ms. Reeves said: “It was a difficult decision to target winter fuel payments, but the right decision due to heritage left by the previous government.
“It is also true that we continue to fix this payment so that it is targeted and fair, rather than restoring the eligibility for all including the wealthiest.
“But we have now worked to expand the eligibility of winter fuel payments, so no pensioner will remember on low income. This would mean that three -fourths of pensioners receive payment to pensioners in England and Wales later in this winter.”
Bus Weekend Technology Secretary Peter Kyle claimed that no decision would be made before spending reviewWhich happens on Wednesday, and instead it will be taken to the budget of autumn.
However, the step comes amidst speculation that Ms. Reeves may lose her job as a Chancellor in a reshuffle to try to reverse the government’s unpopularity.
Losing labor support Nigel Faraj’s improvement UK He announced with him last month that both of them would restore winter fuel payments and end Alapapriya Two hair profit cap,
Speaking at Port Talbot in Wales, Mr. Faraj said that the announcement time was the same when it was due to starting his speech.
He claimed: “There is no doubt that we are making political weather. The government would not have u-turn on it that it was not for the pressure that improvements are putting on them.”
A U turn Now two-child profit hats are also expected and at the same time the treasury costs another £ 3BN.
Ms. Reeves will now need to find additional cash through deduction in review of her spending due to being unveiled on Wednesday.
Treasury estimates that about 2 million persons in England and Wales state pension The age has a taxable income of above £ 35,000 which will not get the benefit.
However, pensioners above the range of £ 35,000 will have the full amount of winter fuel payment that will automatically be collected through Paye, or through their self-assessment returns. No one will need to register HMRC Take any action for this or further. Pensioners who want to get out and do not receive payments will be able to do so, details will be confirmed.
The age of £ 35,000 or the age of 67 to 79 years is entitled to £ 200 200 winter fuel, while people aged 80 years and above receive £ 300 per house.
Opposition parties branded the move for a “derogatory U-turn”.
Tory leader Kemi Badenoch said: “Kir stormer has scrambled to overcome a disturbance of its own. I repeatedly challenged them to reversed their clear decision to withdraw winter fuel payments, and every time the stammer rejected my criticism to the ego.
“It would come as a comfort for derogatory U-turn pensioners, which was forced to select between heating and food in the last winter. The Prime Minister should now apologize for his terrible decision.”
Liberal Democrat leader Sir Ed Davi said: “Finally the Chancellor has heard Liberal Democrats and tireless campaigners to feel how devastating this policy was, but what has grown from it cannot be abolished.
“Countless pensioners were forced to select between heating and food, while the government had buried their heads in the sand for months, which were really suffering.”
Charity Director at Caroline Abraham, UK said: “9 million pensioners decide to restore winter fuel payments – all but highest income people who should be able to pay their heating bills without it – right to do so and there is something that will bring some very important assurances for older people and their families.
“In the UK we heard from many people through winter, who were so frightened about their bills that they did not try to keep their homes sufficiently warm.”