Keir Starmer proclaims U-turn on winter gasoline fee cuts | EUROtoday

Sir Keir Starmer has introduced plans to ease cuts to winter gasoline funds, in a U-turn following mounting political stress in current weeks.

More than 10 million pensioners misplaced out on the funds, value as much as £300, when the pension top-up turned means-tested final yr.

Speaking at Prime Minister’s Questions, Sir Keir mentioned ministers would change the brink to permit “more pensioners” to qualify once more.

But it stays unclear what number of will regain their entitlement for the funds, or when the modifications will take impact.

Sir Keir mentioned the coverage can be modified on the autumn Budget, including ministers would solely “make decisions we can afford”.

The winter gasoline fee is a lump sum of £200 a yr for households with a pensioner underneath 80, or £300 for households with a pensioner over 80.

It was beforehand paid in November or December to all pensioners, however 10.3 million misplaced out final yr after the federal government restricted eligibility to those that qualify for pension credit score and different income-related advantages, to avoid wasting an estimated £1.4bn.

The transfer, introduced shortly after Labour took workplace final July, led to fierce criticism from unions and pensioner charities.

But stress to vary course has grown in current weeks, with some Labour MPs and councillors blaming the coverage for the celebration’s losses ultimately month’s native elections in components of England.

Grumbling from MPs usually on the Labour left unfold into the celebration extra extensively, and even MPs who defended the coverage mentioned it was essentially the most continuously raised concern by members of the general public.

Former Labour prime minister Gordon Brown, who launched winter gasoline as a common profit when chancellor, mentioned Sir Keir was “right” to rethink.

Speaking to the BBC he mentioned: “No pensioner should be forced into poverty, if they have served the country all their lives, if they can not afford heating because they don’t have the funds to do so.

“I feel what Keir is saying is we can be honest to pensioners.”

It had been thought a change in approach could be confirmed at next month’s spending review, when the government will set out departments’ budgets for the coming years.

But in a surprise move, Sir Keir confirmed the policy U-turn in response to a Labour backbencher’s at Prime Minister’s Questions.

Tory leader Kemi Badenoch did not respond immediately to the announcement, waiting until the fourth of her six allotted questions to mention it.

She later denied she had been wrong-footed, telling reporters she “needed to discuss” about rising inflation figures first, and the order of her questions was “not what folks on the market care about”.

She welcomed the “inevitable” U-turn, but called on the government to set out “early” details of their new approach, adding that autumn’s Budget would be too late to deliver changes this winter.

She did not specify where she wanted the new threshold to be set, but added she did not think that “millionaires” should qualify again.

Liberal Democrat leader Sir Ed Davey welcomed the “longest U-turn” from the government, and called for the cuts to be reversed “in full”.

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.

Designing a new income threshold will now present political and practical headaches for ministers ahead of the Budget in the autumn.

Possible options suggested by commentators and policy experts include linking it to lower council tax bands, or expanding eligibility to those receiving housing or disability benefits.

Resolution Foundation, a think tank, said there were “large doubts” over creating a new dedicated means test to qualify for the top-up.

It added the most straightforward option would be to expand eligibility for pension credit – but cautioned that expanding this by 10% would cost £2.5bn due to knock-on costs, more than the original policy was meant to save.

Age UK, one of the charities opposing the cuts, welcomed the change in approach but said any new system should ensure pensioners on “low and modest incomes” would be able to keep the payments.

Asked by reporters when the changes would take effect, the prime minister’s spokesman declined to guarantee it would be in place this coming winter, but added: “We clearly need to ship this as rapidly as doable.

“We will only make decisions when we can say where the money is coming from, how we’re going to pay for it and that it’s affordable,” he added.

Winter gasoline funds, launched in 1997, had been billed as a approach to assure pensioners would have the ability to warmth their properties throughout colder months.

From 2010 onwards, the principle state pension gained extra safety underneath the “triple lock” coverage – underneath which pensions go up annually by the very best of inflation, common earnings or 2.5%.

This yr state pensions went up by 4.1% – an increase of £363 a yr for these on the essential pension or £472 for these on the brand new pension.

Winter gasoline funds are devolved, with the UK authorities accountable for funds in England and Wales.

The Northern Ireland Executive additionally scaled again funds final winter following Labour’s cuts, however saved a £100 top-up for all pensioners.

The Scottish authorities additionally means-tested funds final yr, however was planning to introduce a common £100 fee subsequent winter for many who not certified for the principle fee.