Latest news with #WinterFuelAllowance
Scottish Sun
2 days ago
- Business
- Scottish Sun
Over 2.7million households to get free £150 cost of living cash this winter in big update
The move comes just a week after the government's Winter Fuel Allowance u-turn HELPING HAND Over 2.7million households to get free £150 cost of living cash this winter in big update Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MORE than 2.7 million households are set to benefit from a £150 cost-of-living benefit this winter. An additional 2.7 million households will now be eligible for the subsidy, which will apply to every billpayer on means-tested benefits. Sign up for Scottish Sun newsletter Sign up 3 The new measure will apply to every billpayer on means-tested benefits Credit: Getty 3 The subsidy will apply to every billpayer on means-tested benefits Credit: Getty It will take the total number of claimants to more than six million. The expansion is the latest in a series of cost-of-living measures Sir Keir Starmer hopes will placate Labour rebels furious at welfare cuts. The PM said: 'I know families are still struggling with the cost of living, and I know the fear that comes with not being able to afford your next bill. 'I have no doubt that, like rolling out free school meals, breakfast clubs and childcare support, extending this £150 energy bills support to millions more families will make a real difference.' The new expansion to the cost-of-living measures will see 900,000 families with children and a total of 1.8 million households in fuel poverty will benefit this year. The Government has said the expansion of the Warm Homes Discount means families will be able to plan for winter knowing they will be offered support. The government has also frozen fuel duty and are increasing the minimum wage. Bill payers living in England and Wales will qualify for the discount if they receive means-tested benefits. Following Rachel Reeves' u-turn on the Winter Fuel Allowance last week everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment this year. The move comes after the chancellors disastrous attempt to axe the universal Winter Fuel Payment in July last year just weeks after entering office. Keir Starmer confirms huge winter fuel payment U-turn But fears have been raised immediately by economists that taxes will have to rise to pay for the winter fuel u-turn. The Treasury say there will be no permanent additional borrowing to pay for the move. A total of nine million pensioners are set to benefit from the payment this year. 3 Everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will benefit Credit: Getty The Government plans to offset the expansion of the Warm Homes Discount with new efficiency savings across the energy system. Energy Secretary Ed Miliband said: 'Millions of families will get vital support with the cost of living this coming winter, demonstrating this government's commitment to put money in people's pockets through our Plan for Change." Part of the Plan for Change, the government hopes the expansion of the Warm Homes Discount will help to combat the cost-of-living crisis and directly benefit working families. The Government has estimated that 100,000 families in North East England, 280,000 in north West England and 270,000 in the West Midlands will receive the benefit for the first time. Meanwhile 110,000 families in Wales and 240,000 in Scotland will receive it this winter for the first time.
The Herald Scotland
4 days ago
- Business
- The Herald Scotland
Spending Review: Are wealth taxes on the horizon?
Summary: Major pledges included £113 billion in capital funding for infrastructure projects. Defence and health saw healthy boosts to their budgets. Overall, the government has committed to £300 billion in future spending. But could the cost of meeting those pledges have ongoing implications for wealth taxes? Spending reviews were introduced by Labour in 1998 and typically cover a three-year period. These set out the funding that different government departments will receive over that time. The big winners in the 2025 Spending Review included the Department of Health. It received a £29 billion boost. This will lay the groundwork for the NHS 10-year plan – details of which should be published shortly. Energy infrastructure will benefit from substantial capital investment, including in nuclear. Defence spending will increase by £11 billion. Meanwhile Chancellor Rachel Reeves' reinstatement of the Winter Fuel Allowance has unsurprisingly garnered headlines. Labour's first Spending Review in 18 years was long awaited but had few surprises. But more relevant for many is what this review is likely to mean for the Autumn Budget. The economic backdrop The UK economic outlook is far from bright. UK inflation remains sticky. In other words, it remains higher than expected. There are risks to growth, not least from the potential impact of US tariffs. Gilt yields have risen, pushing up the cost of government borrowing. Justin Onuekwusi, SJP's Chief Investment Officer, says: 'Despite a strong start to the year, we expect the UK economy will likely slow down through the rest of the year due to weakening business sentiment and the impact of tax increases in increased employer contribution implemented in April. Read more: 'We remain concerned about inflation and believe it is likely to remain inflated. Services inflation is still running at over 5% and despite some softening in the labour market, pay growth remains stubbornly high. 'Though the review mainly allocates existing funds, ongoing public spending pressures suggest future borrowing and possible tax rises.' Looking ahead to the Autumn Budget The Office for Budget Responsibility forecast in the autumn will need to consider these issues. It will also have to factor in other governmental policy initiatives, such as changes to immigration. There is also little doubt the Chancellor will face pressure from her party to spend more in the Autumn Budget. In its election manifesto, Labour ruled out increases to income tax, employee national insurance contributions and VAT. But there are other levers it can pull. It is estimated the government could levy tax rises of around £15 billion without crossing these red lines. But this leaves little room for substantial spending commitments. This is fuelling expectations that tax rises could be on the horizon. The likely candidates There are a number of tax-rising measures that have been speculated on. These include extending the freeze in personal tax thresholds beyond April 2028, which could raise around £7 billion per annum. Further measures to limit tax avoidance could be introduced, while changes to property taxation are possible. This could take the form of scope for an additional band on council tax or an increase to existing higher bands to raise up to £2 billion. There has also been speculation about reintroducing the lifetime allowance on pensions and looking at salary sacrifice arrangements. However, both would be difficult to implement and cause sector-specific issues, especially for the NHS. Advice Divisional Director Claire Trott says: 'Salary sacrifice arrangements offer valuable National Insurance (NI) savings for both employers and employees, so any changes would be unwelcome, especially in light of the increase to employers' NI earlier this year. 'Introducing further changes to pension taxation also risks undermining pensions as a long-term savings vehicle. With other changes to the pension system on the horizon, there is a danger that these alterations could cause even more confusion and savers could become more disengaged with pensions – which is especially worrying as individuals have increasing responsibility to plan and save for their retirement.' An update on ISAs is likely to form part of the Autumn Budget too. The Treasury has been keen to encourage greater investment in UK markets. One suggestion which regularly crops up is of a cap on cash ISAs – the thinking being that people would instead invest more in equities in an ISA. James Heal, SJP's Director of Public Policy adds: 'We've been engaged in government and industry discussions around potential changes, including a cap on cash ISAs to encourage greater investment, but there are other measures such as simplifying ISAs (i.e. a single wrapper to make it easier to hold cash and or investments within that) which might be a more fruitful means to achieving this. 'We remain strong advocates for the value of investing, particularly once a sufficient emergency cash buffer has been established.' Ben Stark is a chartered financial planner with over a decade of experience advising businesses and families. He is partnered with St. James's Place Wealth Management.
Wales Online
6 days ago
- Business
- Wales Online
DWP offers payment worth £812 but warns you must repay it by cut-off date
DWP offers payment worth £812 but warns you must repay it by cut-off date The payment is usually sent out in November or December to help with fuel costs during the colder months The government will vote on making the Winter Fuel Payment means tested (Image: Gareth Fuller/PA Wire ) Previously, Winter Fuel Payments were universally distributed to everyone over state pension age. However, following its election victory last year the new Labour-led UK government declared it would begin means-testing these payments, limiting them to those on benefits and Pension Credit as a cost-saving measure. This decision was widely condemned for targeting some of the most vulnerable individuals and was believed to have contributed to the party's poor performance in the local elections. In recent weeks the government has partially reversed its stance, with Chancellor Rachel Reeves confirming that more pensioners will receive the Winter Fuel Allowance this year although it will not be universal. For money-saving tips, sign up to our Money newsletter here At a press conference, Ms Reeves told reporters that 'more people will get Winter Fuel Payment this winter' adding that further details would be announced 'as soon as we possibly can.' What changes are being implemented under the new rules? The modifications, officially announced on Monday, June 9, will enable all pensioners in England and Wales earning £35,000 a year or less to receive a Winter Fuel Payment. This expands eligibility to the vast majority of pensioners, with approximately nine million or over three-quarters benefitting according to ministers. Article continues below This change will cost around £1.25 billion in England and Wales and the Winter Fuel Payment is expected to save around £450 million compared to a universal system, subject to certification by the Office for Budget Responsibility. These figures will be reflected in the next Budget and OBR forecast. The payment of £200 per household, or £300 for households with someone over 80, will be automatically made this winter. Over 12 million pensioners across the UK will also benefit from the Triple Lock, with their State Pension set to increase by up to £1,900 during this parliament. Chancellor Rachel Reeves said: 'Targeting Winter Fuel Payments was a tough decision but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair rather than restoring eligibility to everyone including the wealthiest. 'But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three-quarters of pensioners receiving the payment in England and Wales later this winter.' Reeves elaborated further, stating that pensioners earning above the £35,000 threshold, about two million individuals, will automatically repay the Winter Fuel Payment through PAYE or their self-assessment tax return. They will not need to take any action unless they choose to opt out of receiving the payment altogether, which will be possible later this year. Budgeting Loans If you're applying for a Budgeting Loan, separate from the Winter Fuel Payment, this must be repaid, though it is interest-free so you only pay back what you borrow. The repayments are automatically taken from your benefits and the amount you repay depends on your income including any benefits and what you can afford. After you apply, you'll get an email, text or letter telling you if you've been offered a loan and this will explain how much your weekly repayments will be if you accept it. You normally have to repay the loan within two years (104 weeks). The maximum loan amount is £812 for a couple with children. Article continues below
The National
10-06-2025
- Politics
- The National
Tell voters we will hold new indyref no matter what Westminster says
For Labour to win with a candidate they were so embarrassed by that they wouldn't let him speak in public is a low point in recent Scottish politics. But, more importantly, from an SNP perspective, it was another signal that we are not doing enough to enthuse our potential voters. The SNP have a record to be proud of in government. From free tuition to the Scottish Child Payment, we continually show that even with one hand tied behind our back we are the most progressive and efficient government in the UK. However, we have now been in power for 18 years and the public see things such as free prescriptions and the Winter Fuel Allowance as the norm and expect them to be there in perpetuity, not really understanding that if any of the Unionist parties take control of Holyrood these benefits will disappear like snow aff a dyke. READ MORE: Glasgow's new skyscraper guidelines sparks split over city's skyline future Where I believe we have failed as a government is in not making clear to the people of Scotland the real risk they run every time they vote for a Starmer/Sarwar Labour Party of seeing these things go. Have a look at the mess they've made of Wales's NHS or their continual attacks on the poorest, the elderly and the infirm in the UK. We have to get the message out loud and clear about how much money we spend mitigating the right-wing social policies of the previous Conservative government and, shamefully, of this Labour Government. There is no doubt that we are the best party to run Scotland. The alternatives simply do not bear thinking about. But, as I say, familiarity breeds contempt, and I think that's where we are in the minds of the Scottish people. The beauty is, though, that unlike the other political parties, we hold a trump card and that is, of course, the cause of independence. I have written this before and said it a million times: if we don't have independence front and centre then we simply become another party seeking power to do what it can for the people it represents under the constitutional settlement available to us. That in itself is a good thing but after 18 years in government we end up where we are. However, we know – the proof is there in our record in government – only with independence can we ensure we will be able to continue to take a different path from the rest of the UK and start to make things even better. So what now? Well for a start we have to make independence the centrepiece of every leaflet, every piece of campaign material and manifesto we deliver. We have to show the people of Scotland that independence is not just something we want for its own sake but because it's the route to a healthier, wealthier, happier Scotland – and we have to find a way to do this that bypasses the mainstream media. If last week showed us anything its that our two primary TV channels either don't understand the Scottish political make-up or they understand it only too well. How else can we explain why a Debate Night programme the night before the by-election can have three Labour representatives on it, along with a token Tory and one SNP politician? This is either rank idiocy/ignorance or a blatant attempt to assist one party out of what looked at the time like a political quagmire. You can make up your own minds which you think it is, but either way for us to expect to get a fair hearing on either of these two channels is naïve beyond belief. We must make this forthcoming Holyrood election the Independence Election. We must tell the people of Scotland that if there is an independence-supporting majority government, we will immediately inform the Westminster government that we are taking steps to hold an independence referendum. We should suggest that the best way to do this is with a Section 30 order but either way we will go ahead with one as that is what the people of Scotland have demanded. We should then go back to the Scottish Parliament, ask it to reconfirm the desire to hold the referendum and then set a date. As for the Unionist parties? Democracy is about making available the means for people to participate in the process. If they choose not to do so then they have still used their democratic right. WE then move forward based on the results of the referendum. We cannot continue with the same old, 'give us a mandate, then we'll ask for a Section 30, then we'll voice our disappointment when refused' and then wait for the next election to repeat the process. The last referendum was more than 10 years ago; even in the Unionist calendar that is a political generation. Disagree? Well, they don't. They wrote it into the Good Friday Agreement that seven years was the period between any potential referendums taking place regarding the unification of Ireland. The difference here? Fear of losing Scotland, colonial arrogance and rank hypocrisy. Regarding the indy movement, I think a couple of things have to happen. First of all,please stop pretending that the SNP don't care about independence – you have no idea how ridiculous and insulting that is. Secondly, we all need to put our differences aside and agree that the one thing that matters between now and 2026 is that we get an independence-supporting majority in the Scottish Parliament. The rest can be dealt with after that. Without independence we are not in a position to seriously change the things we want to change. And for SNP members, can we stop begging for a change of leader every time we don't get the result we want. John Swinney has been a member of the SNP and a fighter for independence for well over 30 years. He has constantly shown he knows how to win elections and is someone people tend to trust. Yet every time we lose a by-election or an opinion poll goes against us, we get a clamour for some other politician, usually an MP, who will never have run a department or chaired a parliamentary committee, to become the party leader because they are good in the media or with a witty quip at Prime Minister's Questions. It takes more than that to win a battle of this size. This is not an attack on any of my colleagues at Westminster. There are a number of very talented and able people there, Some of them have put themselves forward to stand in the Holyrood election and that is extremely welcome, but between now and the forthcoming Scottish Parliament election, every member of the SNP should be right behind John. All I ask is that you continue to pressure the leadership to ensure that independence is front and centre of all that we do. It's where it belongs. It's what we are all about.
Yahoo
09-06-2025
- Politics
- Yahoo
North East MPs react to Rachel Reeves' winter fuel payment announcement
North East MPs have welcomed the news nine million pensioners will receive a winter fuel payout again this year. The Chancellor announced a £1.25bn U-turn today (Monday, June 9) which will see the payment worth up to £300 restored for the vast majority of pensioners. It will mean all OAPs with an income of under £35,000 will automatically receive the amount, after the payment was initially scrapped last year for all but the worst-off pensioners. Confirming the U-turn, Rachel Reeves said the Government had 'listened to people's concerns' about the decision to limit the payment to the poorest pensioners last winter, and was now able to widen eligibility because Labour had restored 'stability' to the economy. Durham MP Mary Kelly Foy said: 'I'm delighted the Government has listened to the voices of those impacted by the loss of Winter Fuel Allowance, and to campaigners, charities and MPs who have been advocating for it be either be re-introduced, or for the cut off threshold to be extended to ensure more people are eligible. 'I made my opposition to these cuts clear at the time, and have continued to advocate for the Government to change course. It's good news more people will benefit from this payment this year, but the Government must ensure decisions made going forward protect vulnerable groups, rather than push them further into poverty. Ms Foy called for a U-turn on the Government's policy last year. Read next: Craig Yorke: Girls tell jury defendant had weapons in car before alleged murder Prosecco-launching booze thief who flung bottle at Tesco staff barred from Darlington Call for speed bumps on 'lethal' County Durham road after boy, 9, hit by car lick here to join our WhatsApp community and get breaking news updates direct to your phone. Luke Myer, MP for Middlesbrough South and East Cleveland, said: 'This is a positive and long-overdue step to support older people through the winter. "I'm pleased the Treasury have listened to me and other MPs who expressed concern about the threshold. 'Raising the threshold will help pensioners across Middlesbrough South and East Cleveland to stay warm and well. But we also need to see faster action to bring down bills in the long term and end the unfair postcode lottery for fuel poverty in our region.'
