As part of the difficult choices due to a £22bn hole in the UK accounts, the new Labour Government have announced cuts to the winter fuel payments for some pensioners. Chancellor: I will take the difficult decisions to restore economic stabilit…
As part of the difficult choices due to a £22bn hole in the UK accounts, the new Labour Government have announced cuts to the winter fuel payments for some pensioners.
Chancellor: I will take the difficult decisions to restore economic stability
As part of the Chancellor addresses House of Commons with a pledge to 'restore economic stability' after revealing £22 billion of unfunded pressures inherited from the previous Government on Monday 29th July 2024.
Chancellor of the Exchequer, Rachel Reeves said:
This is not the statement I wanted to give today, and these are not the decisions I wanted to make. But they are the right decisions in difficult circumstances."
Around £1.5 billion will be saved per year by targeting Winter Fuel Payments meaning households with someone aged over State Pension age receiving Pension Credit, Universal Credit, Income Support, income-based Jobseeker's Allowance and income-related Employment and Support Allowance will continue to receive Winter Fuel Payments. This will better target support for heating costs at those who need it.
She went on to say:
It therefore falls to us to take further difficult decisions on spending that generate in year savings.
Mr Speaker, the last Labour government lifted over one million pensioners out of poverty. And I repeat today the commitment we gave that we will protect the Triple Lock. But the scale of the situation we are dealing with means incredibly tough choices.
So that is why today, I am making the difficult decision that those not in receipt of Pension Credit will no longer receive the Winter Fuel Payment from this year onwards. The Government will continue to provide Winter Fuel Payments worth £200 to households receiving Pension Credit… or £300 for households in receipt of Pension Credit with someone aged over 80.
Let me be clear: this is not a decision I wanted to make. Nor is it one that I expected to make. But it is a necessary and urgent decision I must make – It is the responsible thing to do to fix the foundations of our economy and bring back economic stability.
Alongside this change, I will work with my Right Honourable Friend the Work and Pensions Secretary to maximise the take up of Pension Credit by bringing forward the adminstration of Housing Benefit and Pension Credit, pushed back by the previous government and working with older peoples' charities and local authorities to raise awareness of Pension Credit, and help identify households not claiming it.
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