Chancellor Rachel Reeves has confirmed that more pensioners come into question this year for winter fuel payment and signal a U -turn for one of the earliest and most controversial guidelines of the Labor.
Payment – worth up to 300 GBP – was previously limited to those who received pension credit and reduced support for pensioners to around 10 million pensioners in 2024. The restriction was widely held responsible for the poor local election results of the labor loans.
While Reeves assured the voters that “the mean is increased and that more people receive winter fuel payment this winter”, she stopped confirming exactly who will now qualify. The lack of details led to a growing pressure from charity organizations, MPs and opposition parties in order to clarify the authorization and delivery time strips, especially in payments that normally end in November or December.
Prime Minister Sir Keir Strander admitted that the government “picked up” in the rules, but gave no fixed answers during the questions of the Prime Minister on Wednesday. “We will determine how we pay for it,” he said when he was questioned by Kemi Badenoch, leader of the conservative party, whether all 10 million pensioners who were previously excluded would regain access to payment.
The Downing Street has now promised to ensure clarity “as soon as possible” in the middle of Age UK that a delay in the coldest months could make pensioners in need of protection.
The initial decision to limit the previously universal payment to the applicants of pension loans was only one of the first to make Reeves after the Labor’s landslide. Critics, including the Liberal Democratic spokesman Daisy Cooper, described the treatment of the problem as a “debacle”, which “caused unnecessary misery for millions of pensioners”.
Torsten Bell, the pension minister, confirmed that a complete return to the universal model was not on the table. “It is not a good idea that we have a system that has to pay millionaires hundreds of pounds,” he said, pointing out, which points out that targeted support would remain the preferred approach.
The Chancellor has proposed that the government is now in a stronger financial position and enables expansion. “We stabilized the economy,” said Reeves on Wednesday in a speech in Manchester when she also revealed 15 billion GBP for transport investments for Midlands and North.
However, speculation continues how the new admission criteria are implemented. The potential models include that pensioners can apply or withdraw the payment via the tax system for higher earners within a certain income volume. No fixed decision has yet been disclosed.
In contrast, Scotland has already proposed another model. As part of a new Devolved program, which is scheduled to start in 2025, those who have qualifying services such as pension credit will continue to receive full amount, while others receive a lower payment of 100 GBP per budget.
The announcement is made in advance of what insider calls “ugly” expenditure check, which is due on June 11th. Since Reeves excludes further tax increases or borrow the daily expenses, the department budgets are expected to be closely tight. “Not every department gets everything they want,” she admitted, increasing the prospect of cuts elsewhere.
Sir Keir avoided it, other unpopular welfare decisions-the two-child beefic cap into account in order to reverse other unpopular welfare decisions to address the problem directly during the PMQs. The upper limit introduced by the former Chancellor George Osborne in 2015 remains a controversy among MEPs and activists.
In just a few months until the beginning of winter, the government’s challenge is to determine clear criteria and mechanisms for the extended fuel payment – and to ensure that the funds that you need the most urgently are no longer delayed.