In a latest U-turn after months of backlash, head Kir StamorGovernment government has announced that more Pensioners Desire Get winter fuel allowance in this winter.
Rahel reeves Confirmed a change On controversial cuts This winter will be on time, but said that the government will not determine the details of how the payment will be restored by autumn. Budget,
There is confusion on who will be affected by changes, when they will be introduced and what they will do, but Pension Minister Torson Bell has said that payment will not be restored to all.
What was the cut in winter fuel payment?
Winter fuel payment is a state benefit to all pensioners to help with energy cost during the coldest months of the year.
Earlier universal payment means the decision to be tested was one of the first announcements. Rahel reeves When she became a chancellor after Labor’s landslide victory last year, and was widely convicted for the party’s collapse in support.
The government has stressed that policy was necessary to help help in stabilizing public finance, and it meant that the payment would go only to those with low income, who had received specified benefits such as pension credits.
This meant that the number of pensioners receiving payment decreased by about 10 million, from 11.4 million to 1.5 million.
Several charitables, MPs and unions criticized the verdict, convicting the party’s disappointing local election results.
In November, it was discovered that the government’s own figures indicated that it would happen Force 100,000 pensioners in poverty in 2026.
How was the payment related to pension credit?
Only those who claim pension credit were able to receive winter fuel payments in 2024 of winter.
Those who are above state pension age and have less than £ 218.15 a week, or less than £ 332.95 as a weekly income combined with your partner, are eligible for pension credits.
However, despite an increase in claims after the government’s campaigns and the July 2024 announcement, it is estimated that half a million eligible people fail to claim profit.
How can a new system work?
Talking to the work and pension committee, Mr. Bell said: “There is no possibility of a universal winter fuel payment on your question directly, the principle is not, I think most people, 95 percent people, agree, it is not a good idea that we have a system that we have a few pound pounds, and so we are not being released with it.
“But we must be looking to make more pensioners eligible.”
As Many timesThe threshold can be based on the average level of real domestic disposable income – currently around £ 37,000.
Reports It is also stated that all pensioners can be restored before the need of better-closed claimants to pay back through tax bills during the next financial year.
The scheme will be similar to George Osborne’s high -income child benefit charge, with taxes for each £ 100 of more than 1 percent of the total hair gain. This means that whatever threshold sets for MS Reves payment, an amount will be brought back from high -income people.
This would mean that the average income will be paid at the bottom half of the income, in which the top half will be forced to repay the grant through high tax bills during the year.
The plans may cost around 700 million pounds, the Chancellor fasted to determine his plans to pay for changes in his autumn budget. Critics said it would be a “administrative nightmare”, though.
