UK Energy Secretary Ed Miliband defended Chancellor Rachel Reeves' decision to initially cut winter fuel payments for most pensioners and the subsequent partial U-turn. The Labour government had announced the withdrawal of the payment, worth up to £300, from over 10 million pensioners last July. However, following pressure from charities, unions, and backbenchers, eligibility was expanded to nine million pensioners with an annual income of £35,000 or less for the coming winter, costing an estimated £1.25 billion.
Ed Miliband defends winter fuel payment U-turn
Rachel ReevesEd MilibandUK economy
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TL;DR: Key points with love ❤️UK Energy Secretary Ed Miliband defended Chancellor Rachel Reeves' decision to initially cut winter fuel payments for most pensioners and the subsequent partial U-turn. The Labour government had announced the withdrawal of the payment, worth up to £300, from over 10 million pensioners last July. However, following pressure from charities, unions, and backbenchers, eligibility was expanded to nine million pensioners with an annual income of £35,000 or less for the coming winter, costing an estimated £1.25 billion.
Trending- 1 Last July: The government announced it would be withdrawing the winter fuel payment from over 10 million pensioners.
- 2 Last winter: Only 1.5 million individuals were eligible for the payment.
- 3 First quarter of 2025: Economic growth was better than expected.
- 4 Current: The Labour government announced it would partially reverse the decision, expanding eligibility to nine million pensioners.
- 5 This coming winter: Nine million pensioners in England and Wales with an annual income of £35,000 or less will receive the payment.
- 6 Autumn Budget: Details on how the £1.25bn cost will be paid for will be set out.
- Increased government spending (£1.25bn)
- Expanded financial support for pensioners
- Criticism from opposition parties and think tanks regarding funding and policy effectiveness
- Creation of new complexity in the tax system
What: Energy Secretary Ed Miliband defended Chancellor Rachel Reeves' original decision to cut winter fuel payments and the subsequent partial U-turn, which expanded eligibility for the payment to more pensioners.
When: Last July (original cut announced), last winter (only 1.5 million eligible), this coming winter (expanded eligibility), first quarter of 2025 (economic growth), autumn Budget (details to be set out).
Where: United Kingdom (general), England, Wales.
Why: The original cut was made to stabilize the economy. The partial U-turn was due to pressure from charities, unions, and backbenchers, and an improving economic situation, creating 'room for manoeuvre.' The government aims to stick to the principle that the wealthiest pensioners should not receive the payment.
How: The government announced the withdrawal of the payment last July. Following pressure, it partially reversed the decision, expanding eligibility to nine million pensioners with an income of £35,000 or less. The cost of £1.25bn will be accounted for in the autumn Budget.