Millionaires should not be getting winter fuel payments, a senior minister has said, as the government considers how to ease cuts to the allowance for pensioners. Darren Jones, chief secretary to the Treasury, said the payments would be "targeted to those that need it the most". It comes after Prime Minister Sir Keir Starmer U-turned on the withdrawal of the allowance from millions of pensioners, after a backlash over the decision. Sir Keir said "more pensioners" would be able to claim the payments again, under changes to be made at the Budget this autumn. But the prime minister did not specify how many pensioners would be entitled to claim the payments, when the change would take effect, or how much it would cost the government. Conservative leader Kemi Badenoch has also said she does not believe "millionaire" pensioners should be able to claim the winter fuel allowance. But Reform UK, the Liberal Democrats and the Green Party have called for the winter fuel allowance to be restored in full. More than 10 million pensioners lost out on payments worth up to £300 last year after the Labour government restricted eligibility to those who qualify forpension creditand other income-related benefits. When asked on Sky News if ministers should be clearer on how they intend to change winter fuel payments, Jones said "it was right that we set out the detail and pay for those things in an orderly way". He added: "We're sticking to the principle that millionaires shouldn't be getting subsidy for their energy bills from the government, so winter fuel payments will still be targeted to those that need it the most". He did not provide further details of who would qualify as a millionaire, adding that the eligibility threshold would be reviewed in the "coming months". The winter fuel payment is a lump sum of £200 a year for households with a pensioner under 80, or £300 for households with a pensioner over 80. It was previously paid in November or December to all pensioners who claimed it, regardless of their income or wealth. But 10.3 million pensioners lost out last year after the Labour government made changes to save an estimated £1.4bn, with ministers arguing immediate savings were needed as the Conservatives had left a "hole" in the public finances. But pressure to change course has grown in recent weeks, with some Labour MPs and councillors blaming the policy for the party's losses at last month's local elections in parts of England. The Institute for Fiscal Studies (IFS), a think tank, has suggested a number of ways the government could expand who is able to claim the payment. The income threshold for pension credit, the main benefit to qualify to continue to receive winter fuel payments, is currently £11,800 a year for individuals and £18,023 for pensioner couples. The IFS said a new means-test would create "hassle" for pensioners and "would no doubt result in many not claiming". It would also "imply a lot of administrative cost for what is a fairly small benefit", the IFS said. Resolution Foundation, a think tank, said there were "huge doubts" over how a new means-test would work, and estimated that expanding eligibility for pension credit by 10% could cost £2.5bn, more than the original winter fuel cut was meant to save.
Millionaires shouldn't get winter fuel cash, minister says
TruthLens AI Suggested Headline:
"Government Plans to Restrict Winter Fuel Payments to Low-Income Pensioners"
Bbc News
7.5
TruthLens AI Summary
In a recent statement, Chief Secretary to the Treasury Darren Jones emphasized that winter fuel payments should not be distributed to millionaires, reinforcing the government's intention to direct financial support to those who genuinely require assistance. This announcement follows a significant policy reversal by Prime Minister Sir Keir Starmer, who faced backlash over the previous withdrawal of winter fuel allowances from numerous pensioners. Starmer indicated that adjustments would be made in the forthcoming Budget, allowing more pensioners to qualify for these payments again, although he did not provide specific details regarding the number of eligible pensioners, the timeline for implementation, or the projected costs to the government. The Conservative Party leader, Kemi Badenoch, echoed this sentiment, asserting that wealthy pensioners should not benefit from government subsidies aimed at alleviating energy costs.
The winter fuel payment, which provides up to £300 annually to pensioner households, was previously accessible to all pensioners regardless of their financial situation. However, over 10 million pensioners were excluded from receiving this assistance last year after the Labour government imposed new eligibility criteria, targeting only those who qualify for pension credit and other income-related benefits. This change was aimed at saving approximately £1.4 billion, prompted by fiscal strains attributed to the Conservative Party's governance. The Institute for Fiscal Studies has raised concerns about the potential complications of introducing a new means-test for eligibility, suggesting that it may deter many pensioners from claiming the benefit and incur additional administrative costs. Meanwhile, the Resolution Foundation has expressed skepticism about the feasibility of a means-test, estimating that broadening the eligibility for pension credit could cost the government significantly more than the intended savings from last year’s cuts. The ongoing debate highlights the critical balance the government must strike between fiscal responsibility and the welfare of vulnerable pensioners.
TruthLens AI Analysis
The article presents a discussion about the UK government's stance on winter fuel payments for pensioners, particularly focusing on the exclusion of wealthy individuals from receiving this financial support. It reflects a broader political debate concerning social welfare and the distribution of government resources, especially in light of recent cuts to allowances for seniors.
Government's Position on Welfare Payments
The statement from Darren Jones, the chief secretary to the Treasury, indicates a shift towards a more targeted approach in welfare distribution. By stating that "millionaires shouldn't be getting subsidy for their energy bills," the government is attempting to align itself with public sentiment favoring social equity. This reflects an effort to address criticisms faced after the Prime Minister's initial decision to withdraw allowances from millions of pensioners.
Public Perception and Backlash
The article highlights a backlash against the government’s previous decision to restrict winter fuel payments, which resulted in over 10 million pensioners losing financial support. This indicates a significant public concern regarding the welfare of seniors, suggesting that the government is trying to regain trust and support from the electorate by reversing its stance.
Political Implications and Responses
The article notes responses from various political factions, including the Conservative leader's agreement with the exclusion of wealthy pensioners and calls from other parties for the restoration of full payments. This demonstrates the contentious nature of welfare policies and how they can serve as a rallying point for different political agendas. The lack of clarity from the government on eligibility criteria and financial implications further complicates the narrative, leaving room for speculation and potential criticism.
Potential Hidden Agendas
While the article focuses on the immediate issue of winter fuel payments, there may be underlying motives related to budgetary constraints and political maneuvering ahead of upcoming elections. By emphasizing the targeting of support, the government might be aiming to divert attention from broader economic challenges and potential austerity measures that could affect other social programs.
Manipulation and Trustworthiness
The framing of the issue, particularly the focus on millionaires, could be seen as a way to manipulate public opinion by creating a dichotomy between "needy" pensioners and affluent ones. This could foster a sense of justifiable exclusion of the wealthy, even if it raises questions about the fairness of such a policy. The overall trustworthiness of the article can be deemed moderate, as it reflects current political discourse but lacks specific details on implementation and the criteria for determining wealth.
Societal and Economic Impact
This news piece has the potential to significantly influence public opinion and voter behavior, especially among pensioners and their families. If the government fails to clarify its position and implement effective changes, it could lead to discontent among the elderly population, impacting social stability and potentially leading to electoral consequences.
In summary, the article serves to inform the public about the government's evolving stance on winter fuel payments while also reflecting broader societal debates around welfare and economic fairness. By addressing these issues, the government seeks to navigate a complex political landscape while attempting to maintain public support.