The Government has announced a U-turn on the winter fuel allowance following a backlash over unpopular cuts last year which took money away from 10 million pensioners
Later this year, more pensioners will be eligible for Winter Fuel Payments of up to £300 due to modifications to the scheme. Following a backlash over contentious cuts last year that affected 10 million pensioners, the Government has announced a reversal on the policy.
The specifics of who will now qualify are yet to be confirmed by ministers. However, a complete rollback of the policy to restore payments to all pensioners seems improbable. This suggests that affluent pensioners are unlikely to receive the payments, given the broad consensus that they don’t require the funds which could be better utilised elsewhere.
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Chancellor Rachel Reeves is expected to announce further details at next week’s spending review. Ms Reeves has assured that changes to the scheme will be implemented in time for this winter, ensuring more pensioners receive support, reports Birmingham Live.
The Government faced severe criticism over its method of determining who would receive the winter payments last year, leaving millions on low incomes without assistance.
The Chancellor stated that people “should be in no doubt that the means test will increase and more people will get winter fuel payment this winter”.
Pensions minister Torsten Bell effectively ruled out a return of universal payments. He said: “It’s not a good idea that we have a system paying a few hundreds of pounds to millionaires, and so we’re not going to be continuing with that.”
Nonetheless, the specific threshold for eligibility is still up in the air, with speculations hinting it might be tied to council tax bands.
