Latest news with #winterfuel
Daily Mail
2 days ago
- Business
- Daily Mail
SNP deny 192,000 scots OAPs winter fuel cash
Nearly 200,000 Scots OAPs won't get winter fuel help after the SNP broke their promise on universal payments. The Scottish Government announced yesterday that it would only provide its new devolved benefit to those earning less than £35,000. They will receive payments of £203.40 or £305.10 – figures which have been set marginally higher than the £200 and £300 rates offered south of the Border. But those with personal incomes above £35,000 a year – including pensions, investments and other earnings – will have the payments recovered from them through the tax system. It means that 853,000 will receive the payment and get to keep it, while around 192,000 – or nearly one in five – will have it clawed back because they earn more than £35,000. This is despite the SNP previously pledging that they would provide a 'universal' payment this winter, with everyone receiving at least £100. Scottish Conservative social security spokesman Liz Smith said: 'The SNP, like Labour, shamefully betrayed pensioners by axing universal winter fuel payments, before being forced into a humiliating climbdown by the public outcry. 'But this latest announcement means that hundreds of thousands of Scots will not have the payment even partially restored – despite John Swinney's promise that they would. 'This latest slap in the face will not be forgotten or forgiven.' A series of policy announcements and U-turns have been made about winter fuel payments since the Labour government first announced cuts last year. Over the past winter, only those on pension credit received a payment following the initial cuts by the Chancellor Rachel Reeves and the SNP's decision to delay the introduction of the devolved pension age winter heating payments. First Minister John Swinney committed earlier this week to ensuring that all pensioners receive at least the same amount as those in England. But when SNP ministers unveiled the full detail of their plan yesterday, it was confirmed that the intention is for those with income above £35,000 to have this clawed back through the tax system. The Scottish Government confirmed 133,000 pensioners in receipt of pension credit were already receiving winter fuel payments over the last winter, while an additional 720,000 with earnings below £35,000 will become eligible this winter. Adam Stachura, policy director at Age Scotland, said: 'While this is a considerable increase for the vast majority of pensioners compared to what the Scottish Government had originally planned, it only really brings it back to what they received two winters ago. Around four in ten Scottish pensioners were living in fuel poverty then, and it will have sky-rocketed since. 'The policy making on this payment has been guddled, lacked consultation, and politically charged throughout. 'While this is partly to do with the speed of the UK Government's original change and subsequent U-turn, the Scottish Government's repeated commitment to universality and its benefits has been abandoned in a heartbeat. 'While in the end this payment is broadly now proportionally fairer, it doesn't really match the material need of most older people and take advantage of the financial means the government has available to improve it.' Social Justice Secretary Shirley-Anne Somerville said: 'The UK Government's decision to cut the Winter Fuel Payment last winter was a betrayal of millions of pensioners, and their recent U-turn is welcome if belated. 'Following careful consideration of the options available, the Scottish Government will mirror the approach taken by the UK Government. We will bring forward regulations to ensure that, from this winter onwards, all pensioners will receive either £203.40 or £305.10 per household, depending on age. 'We are in discussion with the UK Government to extend the proposed arrangements in England and Wales to recover payments from those pensioners with an individual income of more than £35,000 through the tax system. 'The intention is that the payment will be recovered automatically, and pensioners will not need to register with HMRC for this or take any further action. 'This approach ensures a higher level of support which those most in need will receive. 'Over 720,000 Scottish pensioners are estimated to benefit from the higher payment.'
Telegraph
2 days ago
- Business
- Telegraph
Winter fuel payment confusion leaves pensioners at risk of scams
Thousands of pensioners are at risk of being duped by fraudsters amid confusion over winter fuel entitlements. Scammers have sent a wave of bogus messages to pensioners across the country after Labour loosened eligibility rules for the annual heating allowance. The Department for Work and Pensions (DWP) has warned that any texts regarding winter fuel are a scam and should be reported. Figures from Action Fraud show that thieves stole more than £14,000 from unsuspecting pensioners between October and March in the wake of Labour's original decision to means-test the allowance. Victims logged 323 incidents over the six-month period, with a total of £14,459 being lost to scammers. Fraudulent messages have surged again in the past week after scammers pounced on Rachel Reeves's decision to row back on the eligibility criteria for pensioners. One message pretending to be sent by the DWP read: 'Your account shows that you are eligible to apply for an Energy Allowance for 2024-25 up to a maximum of £300. Please complete the submission process by June 20th. Late applications will be void.' Recipients are then encouraged to click on a link directing them to a fake website that tricks them into giving up their personal information. In some cases, messages ask for a '£1 test payment to verify your card', which will be refunded within five to seven working days. Government departments, a host of councils and fraud charities have warned of the scams, urging pensioners to ignore all text messages related to winter fuel payments. The new eligibility criteria means pensioners earning below £35,000 are eligible for the support payment. Around two million pensioners earn more than the threshold, and will have the winter fuel payment claimed back through the tax system. If one pensioner in a household earns more than the threshold and the other doesn't, then £100 will be clawed back by HMRC from the higher earner. This is because the allowance is paid on a household level, so if there are two pensioners living in the same home, then it is split equally between them. Consumer expert Martyn James said that the complex eligibility criteria gives fraudsters an opening to exploit. He said: 'Because the system is so complicated, people genuinely don't know what their rights are. 'So if someone contacts them and it looks official, people who in the back of their mind are thinking 'maybe I'm entitled to this' get lured in. 'There's absolutely no excuse for the morally repugnant ways that fraudsters are exploiting topical news events, but there's no getting away from the fact that if the system was simpler and easier to understand, then a lot of these fraud attempts would not be successful.' Age UK has warned the elderly to be vigilant, stressing that if 'you're contacted out of the blue, you should never give over any personal information'. Pensioners confused by their entitlement are urged to ignore text messages. In a post on X, the DWP said: 'Beware: If you get a text about 'winter fuel payment' it is a scam. Winter fuel payments are made automatically, you do not need to do anything.' Anyone who receives a suspicious message is urged to report the scam on the Government's Stop! Think Fraud website.
Telegraph
6 days ago
- Business
- Telegraph
How Labour's winter fuel fiasco paves the way for means-testing the state pension
As Rachel Reeves announced an about-turn on her winter fuel policy this week, she opened a whole new can of worms for pensioners. The Chancellor's decision to return the payments to those with an income of under £35,000 has created a complicated means-test and reignited calls from some commentators to claw back other benefits, such as the state pension, from those deemed 'wealthy'. Means-testing the state pension system would be a radical move that no British chancellor has dared attempt before. But Labour is desperate for cash and has shown it is not afraid to anger older voters. Could Ms Reeves possibly get away with it? Introduced in 1909 and originally worth five shillings a week, the state pension is a cornerstone of the welfare state. Today, workers pay National Insurance contributions for 35 years to receive its full benefit. The full new state pension is £230.25 a week, while the old 'basic' pension – for those who reached state pension age before April 2016 – is £176.45 a week. However, the benefit has become increasingly unaffordable to administer. The Office for Budget Responsibility (OBR) predicts the country's spending on pensioners will reach £180bn by 2029. The idea of reserving the payment for those who need it most has therefore become increasingly attractive. Both Labour and the Tories pledged to keep the 'triple lock' that means pensions are increased each April by the highest of wage growth, inflation or 2.5pc. Means-testing could be one way to dramatically cut costs, without breaking that pledge. In January, Kemi Badenoch, the Conservative leader, caused uproar when she said her party would 'look at means-testing' the state pension. Key Labour advisers, think tanks and academics have also voiced support for the plan. Means-testing would completely upend the system. But this week's winter fuel policy reversal could make it slightly easier. Under the latest changes, all pensioners will receive the winter fuel payment, worth up to £300 a year. However, those who earn more than £35,000 will be expected to return it to HM Revenue and Customs (HMRC). To administer the new system, the Department for Work and Pensions (DWP) will tell HMRC who they've paid the winter fuel payment to. HMRC will then apply the income test to determine who will need to repay the money. Government departments have long shared data about taxpayers, including doing so specifically to pay or not pay a pensioner benefit, such as free TV licences. But is this Whitehall bureaucracy really a slow slide towards a means-tested state pension? Telegraph Money reader Jim Humphrey fears so. The 69-year-old, a part-time financial adviser from St Albans, is one of the estimated two million pensioners who will still not receive the winter fuel payment. This is because his income exceeds the £35,000 threshold. He is worried Labour is on a 'slippery slope' to means-testing the state pension. He said: 'I don't need the money, but it is a question of principle... I have paid tax for many, many years.' Other state benefits have been means-tested in recent years. Free TV licences for all over-75s were scrapped in August 2020 and restricted to those who qualify for pension credit. Last year's restriction of the winter fuel payment to those on pension credit was also a form of means-testing – as is the payment of pension credit to those on the lowest incomes. Campaigners and economists have also pushed for free prescriptions for the over-60s to be similarly restricted. Last October, Dr Kristian Niemietz, of the Institute for Economic Affairs think tank, said: 'Means-testing old-age benefits is a way to make fiscal savings while insulating the poorest from cuts.' Labour is also gearing up to ban over-60s from taking student loans from 2027, as it introduces a 'Lifetime Learning Entitlement'. Ben Ramanauskas, of think tank Policy Exchange, said: 'The Government's approach to cutting spending through means-testing is the right one. 'However, this alone will not significantly lower the cost of the UK's unsustainable welfare bill, improve public finances, or give younger taxpayers a fair deal.' Other countries already operate means-testing on their state pension payouts. In Canada, which operates a flat-rate benefit system, a maximum of $1,433 (£773.30) is paid each month, and is topped up for those on low incomes. In Chile, a pension is paid to those over 65, unless your family's wealth is deemed to be in the top 10pc of the population. Those with an income of less than $1,210,828 (£955.30) a month are eligible, whether they are still working or not. In Australia, the state pension – or 'age pension' – has no reference to how long a person has worked. Instead, it is granted as an age-based means-tested benefit. About a third of pensioners have their pension cut because they have other sources of income. Moving to an Australian-style system would be highly controversial, angering those who say if you have 'paid in' you should get the full amount irrespective of your income. Mike Ambery, of pension provider Standard Life, said: 'There would need to be a change in applying for state pension as well as the detail to replicate means-testing in other countries. The practicality and change to a universal system now would be operationally significant.' There would be other barriers to overcome. The Government could only make significant savings if people are able to generate big enough private pension savings. But despite the 'automatic enrolment' reforms that made workplace pensions compulsory, millions of people are on course for meagre retirement incomes. Research by the Pensions and Lifetime Savings Association (PLSA) found that the cost of all but the most basic retirement has increased over the past year. Two retirees running one small car, eating out weekly and taking a four-star foreign holiday each year would now need an income of almost £35,000 each before tax to retire comfortably, rising to £52,000 if they live alone. Meanwhile, anyone living alone on the state pension would even fall short of a basic retirement, which now requires an income of £13,400 a year, the PLSA said.
The Sun
10-06-2025
- Business
- The Sun
Ed Miliband accused of ‘rewriting history' after claiming winter fuel axe was to stop millionaires cashing in
ED Miliband was accused of 'rewriting history' yesterday after he claimed scrapping winter fuel was about stopping millionaires getting payments. The bungling Net Zero Secretary tried to justify Labour's original decision to strip the handout by suggesting the pensioners who would've missed out were all rich. 2 2 But some of them earned as little as £12,000 per year. Mr Miliband said: 'The principal question was, the richest in our society, should they get the winter fuel payment, should millionaires, should the richest get the winter fuel payment? 'I think the answer for most people to that is no.' The Net Zero Secretary's desperate bid to explain scrapping winter fuel payments – before the decision was partially reversed – was blasted by senior Tories, who accused him of spouting a 'pack of lies'. Shadow Energy Secretary Andrew Bowie told The Sun: 'Red Ed is even more out of touch than we thought if he thinks people will believe this pack of lies. 'The economy is worse off than when they found it - taxes higher, unemployment higher and living standards lower. 'He is just trying to rewrite history to try and cover up Labour's embarrassing U-turn.' Meanwhile, a flagship Net Zero plan has been spared ahead of next week's spending review — to opponents' dismay. Energy Secretary Ed Miliband has ensured his £13billion warm homes scheme will not be downgraded after negotiations with the Treasury. Chancellor Rachel Reeves decided not to cut the cash which allows heating upgrades through better insulation, solar panels and heat pumps.
Daily Mail
10-06-2025
- Business
- Daily Mail
Winter fuel humiliation: After huge U-turn Rachel Reeves bizarrely claims she was 'right' to cut handout - while Sir Keir Starmer is ridiculed for suggesting move is now possible because Labour's 'fixed' stricken economy
Labour 's spending plans descended into chaos last night as Rachel Reeves backed down over winter fuel. The Chancellor said all pensioners with incomes of less than £35,000 will get the payment this winter following a huge public backlash over last year's cuts. The humiliating climbdown means nine million pensioners will receive the handout – worth up to £300 a household – at a cost of £1.25billion. Ms Reeves refused to apologise for the original decision to slash the number of those eligible for the payment – a move which triggered a collapse in Labour's poll rating. She insisted she had been 'right' to cut the payment last year. And, despite having repeatedly attacked opponents for making 'unfunded' spending pledges, she refused to say how she will pay for the U-turn. Labour MPs seized on the Chancellor's political weakness and lined up to demand that she now scrap the two-child benefit cap and cancel plans to cut disability benefits at a combined cost of £8.5billion a year, fuelling fears of further tax rises. Downing Street claimed the U-turn was possible because the economy had now 'turned a corner', despite the fact the Office for Budget Responsibility has halved official growth forecasts for this year. Sir Keir Starmer insisted Labour had ' fixed the foundations of the economy', in spite of rising unemployment and inflation. Reform leader Nigel Farage, who pledged this month to restore the payment in full, said Labour's U-turn was triggered by 'blind panic' at its collapsing poll ratings. The Treasury said the winter fuel reverse would not lead to a 'permanent rise in borrowing'. Paul Johnson, director of the Institute for Fiscal Studies, said this was likely to mean 'permanent additional taxes'. The move came ahead of tomorrow's spending review, when the Chancellor will announce a spending spree totalling an extra £300billion over five years – equal to £8,100 for every taxpayer in Britain. Labour minister Sir Chris Bryant said the review would mark 'the end of austerity'. But Tory business spokesman Andrew Griffith said Labour was 'massively adding to the national debt our children will have to pay and ensuring that taxes will rise and growth will fall'. Economists last night warned that the financial markets could turn on Labour if ministers were unwilling to keep spending on a 'sustainable path'. The Chancellor's decision to means test the winter fuel allowance was one of Labour's first steps in office last July. It meant that around 10million pensioners lost the previously universal benefit last winter. The decision also helped trigger a plunge in Labour's ratings and was widely blamed for the party's dismal performance in last month's local elections, when it lost two-thirds of the seats it was defending. A More in Common poll yesterday found that just 14 per cent of voters now think the Chancellor is doing a good job. Ms Reeves yesterday said she had 'listened to people's concerns'. Kemi Badenoch urged ministers to apologise for the 'callous' decision to cut eligibility for the payment last year. The Tory leader said: 'Pensioners were forced to choose between heating and eating last winter. Keir Starmer should apologise to them.' Tory work and pensions spokesman Helen Whately said the U-turn was 'most humiliating climb down a government has ever faced in its first year in office'. Ms Whately added that the cut had contributed to an extra 100,000 visits by pensioners to A&E departments last winter. 'Their mistake has hurt people and it is cowardly not to own up to it,' she said. But, asked if she would apologise, Ms Reeves said: 'The irresponsible thing to have done last year was to allow the public finances to carry on on an unsustainable footing.' She added: 'I'm always going to put stability in our economy first.' At present, only pensioners with an income of less than £11,800 are eligible for the winter fuel payment. This will treble to £35,000 this winter. It will continue to be £200 per household or £300 for the over-80s. The winter fuel retreat emboldened Labour rebels pushing for increased welfare spending. Left-winger Nadia Whittome said the episode had been a 'fiasco' for the Government and urged ministers to now abandon £5billion of cuts to disability benefits that are designed to curb the ballooning welfare budget. Bradford East MP Imran Hussain said it would be wrong to continue with 'devastating' cuts to disabled support. Former leadership contender Rebecca Long-Bailey welcomed the U-turn but said it was also 'right to lift children out of poverty' by scrapping the two-child benefit cap. The decision to restore the winter fuel payment to three-quarters of pensioners was welcomed by campaign groups. Caroline Abrahams, of Age UK, said Ms Reeves' reversal 'will be a huge relief to many'. Who will now get winter fuel payments? If you are over state pension age and your income is less than £35,000 your household will now be eligible. How much is it worth? The annual payment is worth £200 per household, or £300 if someone who lives there is over 80. How do I get it? The payment will be made automatically to all pensioner households and then recouped from any that aren't eligible. Who will have to repay it? If your income is above £35,000, your payment will be 'recovered' by HMRC or you can opt out. What if my partner's income is below £35,000? Payments will be assessed on individual, not household, income. Payments are split if a household has two pensioners. In the case of a couple where one has an income above the threshold and one below it, half the total will be paid to the pensioner with the lower income. Can I just turn it down? If you know that you definitely won't qualify for a winter fuel payment, as your income is more than £35,000, you can opt out to avoid the hassle of paying it back. What if I need to pay it back? Pensioners whose income is above £35,000 and who don't opt out will need to pay all of it back. It will be repaid either via a self-assessment tax return, for those who complete one, or automatically through PAYE. The Treasury said: 'No one will need to register with HMRC for this or take any further action.' Is this plan for all of the UK? The Treasury announced this move for England and Wales, but Scotland and Northern Ireland might make separate new arrangements. Last winter, Scotland replaced the Winter Fuel Payment with the Pension Age Winter Heating Payment. Northern Ireland made a one-off £100 payment to pensioners who lost their winter fuel payments. How much will this cost? The cost of reinstating Winter Fuel Payments for those now eligible is estimated at £1.25billion in England and Wales. Compared to when the payments were a universal benefit for pensioners, the savings will now only be around £450million annually.
