Winter fuel payment changes that could help more pensioners
But he has not set out how the change to who is entitled to the payments worth up to £300 will look.
The means-testing of pensioners' winter fuel payments is an issue which has been blamed for contributing to Labour's poor performance in May's local elections and the Runcorn and Helsby by-election.
There are several options for how the Government could go about it.
Full reversal
One option would be a full reversal of the decision to strip the benefit from millions of pensioners.
The decision to make it available only to those who claim pension credit last year meant those claiming winter fuel payment fell by almost 90% and saved around £1.5 billion a year, the Institute for Fiscal Studies estimates.
Undoing last year's policy change would make some 11 million more households eligible and of course wipe out the £1.5 billion in savings.
Create a specific threshold for winter fuel
Creating a new threshold and means test would allow households not on pension credit to apply directly for winter fuel payments.
Raising it 20% above the pension credit threshold would cost around £100 million and see winter fuel payments go to around 400,000 more families, according to the Resolution Foundation.
One option would be to model this on child benefit by allowing all pensioner households to claim but then require those above a certain income level to pay some back via a self assessment tax return, the IFS notes.
But there is a risk to adopting 'a clunky bureaucratic mechanism for what is, ultimately, a relatively small payment', IFS associate director Tom Waters warned.
Very pleased to just hear the Prime Minister has just said he wants more state pensioners to get Winter Fuel Payments (WFP) and they will work out what they're doing in time for the budget.
As I've said since day one, there are two main problems with the way the means testing… — Martin Lewis (@MartinSLewis) May 21, 2025
Expand entitlement to those who get disability or housing benefits
Some 1.8 million more households could get winter fuel payment at a cost of around £500 million per year if entitlement is extended to those on disability benefits, the IFS estimates.
This would be more complicated to put in place in Scotland, where disability benefit is devolved.
Extending eligibility to include those on housing and disability benefits would give support to 1.3 million more pensioner families at a cost of £300 million a year, the Resolution Foundation estimates.
This would be an 'affordable' and 'sensible way forward', chief executive Ruth Curtice said.
Recommended reading:
Pay winter fuel money to individuals, not households
One difficulty in allocating the winter fuel payment is that it currently goes to households rather than individuals.
Changing this would mean the Government could do a means test on an individual basis and use information that it already records for income tax purposes.
It would see pensioners with a low income but with a high-income spouse get the winter fuel payment.
However, it could also see couples get twice as much winter fuel payment as single people, where at the moment a single person would get the same amount as a couple sharing a household.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Western Telegraph
25 minutes ago
- Western Telegraph
Lammy urges Iran and US to keep talking as Middle East conflict continues
The Foreign Secretary met his Iranian counterpart Abbas Araghchi in Geneva on Friday alongside foreign ministers from France and Germany and the EU's foreign policy chief. Following the meeting, Mr Lammy said the Europeans were 'keen to continue ongoing discussions and negotiations with Iran, and we urge Iran to continue their talks with the United States'. Iranian foreign minister Abbas Araghchi said his country would not negotiate with the US while Israeli air strikes continued (Martial Trezzini/Keystone via AP) He added: 'We were clear: Iran cannot have a nuclear weapon.' Friday's meeting followed Donald Trump's statement that he would delay a decision on whether the US would join Israeli strikes against Iran for two weeks, raising the prospect of a negotiated solution to the crisis. German foreign minister Johann Wadephul said the group had left the room 'with the impression that the Iranian side is fundamentally ready to continue talking about all important issues'. But Mr Araghchi said Iran would not negotiate with the US as long as Israel continued to carry out airstrikes against the country. Tel Aviv's campaign continued on Friday, with Israel saying its aircraft had hit military targets including missile-manufacturing facilities as it continues to attack locations connected with Iran's nuclear programme. Iran insists its nuclear programme is entirely peaceful. Meanwhile, the UK Government has announced it will use charter flights to evacuate Britons stranded in Israel once the country's airspace reopens. Number 10 said on Friday morning the situation remains 'fast-moving' and it will continue to be monitored closely. A spokesman added: 'We are advising British nationals to continue to register their presence in Israel and the Occupied Palestinian Territories, to be contactable with further guidance on these flights.' Mr Lammy said work is under way to provide the flights 'based on levels of demand' from UK citizens who want to leave the region. 'The UK will provide charter flights for British nationals from Tel Aviv when airspace reopens,' he said. 'The safety of British nationals remains our top priority.' According to the Israeli government, some 22,000 tourists are seeking to board evacuation flights. It is unclear how many of these may be UK citizens. Government advice for British nationals in the country remains to follow local guidance, as well as to let officials know about their presence within Israel or the Occupied Palestinian Territories. Land routes out of Israel remain open and British staff are on hand to support UK nationals who have crossed the border, he added. The move follows criticism of the Foreign Office's initial response, which saw family members of embassy staff evacuated while UK citizens were not advised to leave and told to follow local guidance. The Government said the move to temporarily withdraw family members had been a 'precautionary measure'. On Friday, the Foreign Office announced that UK staff had also been evacuated from Iran, with the embassy continuing to operate remotely.
The Independent
an hour ago
- The Independent
Experts hacks for helping parents with children save money
Families are facing significant financial strain due to persistent inflation and escalating childcare expenses, making strategic budgeting crucial. Experts advise regularly reviewing personal finances, checking for better deals on services like insurance and streaming, and actively switching providers for utilities such as broadband and energy. To reduce spending on children's items and activities, families should embrace pre-loved goods, utilize loyalty cards and railcards for discounts on days out, and seek out free local events. Parents should explore available support for school expenses, including council uniform grants and school-recycled uniform schemes. Significant government support is available for childcare costs, such as tax-free childcare and Universal Credit childcare claims, which many eligible families are not currently utilizing.
Rhyl Journal
an hour ago
- Rhyl Journal
United Ireland should be new state that ‘can be better for all of us'- Varadkar
Leo Varadkar also said he hopes the current Irish government takes the decision to establish a forum to lead discussions on unity, and also appeared to dismiss concerns of potential loyalist violence in reaction to a united Ireland. Mr Varadkar, who stood down as taoiseach in April last year, said he believes he will see a united Ireland in his lifetime but warned it is not inevitable. He said that he has had no regrets so far since leaving elected politics, and is enjoying both 'a lot of personal and intellectual freedom to say what I think'. He was speaking at an In Conversation event with Rev Karen Sethuraman at St Mary's University college in west Belfast, hosted by Feile an Phobail and Ireland's Future. Former Sinn Fein president and West Belfast MP Gerry Adams was among those in the audience for the event. Mr Varadkar stressed that a united Ireland 'has to be a new Ireland that is better for everyone'. 'That includes a bill of rights, guarantees civil protections and liberties,' he said. 'Unification, in my view, is not the annexation of six more counties by the Republic of Ireland. It's a new state and one that can be better for all of us, an opportunity that only comes around every 100 years, which is to design your state and design your constitution.' In terms of what the current Irish Government is doing, Mr Varadkar described the Shared Island Unit, which was set up when he was Taoiseach, as really positive. But he said he would like to see the Irish Government lead a forum ahead of unity. 'Just saying it as an aspiration isn't enough anymore, it should be an objective and an objective is something you act on,' he said. 'One of the ideas that I would put forward, which could help to move on this discussion, is the establishment of some sort of forum.' He said there was the New Ireland Forum in the 1980s, and the Forum for Peace and Reconciliation in the 1990s. 'I think there is a strong case now for us to convene the parties that are interested in talking about this, unions, business groups, civil society in a forum to have that discussion, but I don't see how that can happen if that isn't led by the Irish Government, and I hope at some point during the course of this five-year government, a decision will be taken to do that,' he said. Meanwhile, asked how he felt potential violent opposition to a united Ireland could be handled, Mr Varadkar suggested he felt 'only a very small minority may turn to violence'. 'I know there are people south of the border who, when I talk to them about reunification, express to me concerns that there might be a very small minority within unionism who may turn to violence,' he said. 'I don't think we should dismiss that as a possibility. I don't think it will happen, to be honest. 'In two referendums, both north and south, people would be very clearly giving their preference as to what should happen, it would be quite a different situation to when partition happened 100 years ago and it wasn't voted for. 'I don't think that would arise but I think it's a reasonable question.' Meanwhile, deputy First Minister Emma Little-Pengelly suggested Mr Varadkar was 'wrong in terms of the trajectory' towards a united Ireland, insisting the number of people voting for nationalist parties, around 40%, 'hasn't moved since 1998'. Mr Varadkar said he was in politics long enough to not respond to someone else's comments without hearing them in full, but said the case he is making is not just based on the percentage of people who vote for nationalist parties, adding it is clear the percentage voting for unionist parties has fallen. Earlier, Mr Varadkar visited nearby Colaiste Feirste where he heard about the growth in Irish medium education, and plans to build a new Irish Language Heritage and Interpretive Centre, An Spas Din. School principal Micheal Mac Giolla Ghunna said: 'We have grown a vibrant Irish language community from our base in the Gaeltacht Quarter, leading to challenges for us in terms of accommodation and teacher provision. 'But far from limiting our ambitions, we are now using the Sportlann facility and initiatives like our GaelStair heritage project to offer our pupils and the wider community further opportunities.'
