Millionaires should not get winter gas funds, minister says | EUROtoday

Millionaires shouldn’t be getting winter gas funds, a senior minister has mentioned, as the federal government considers find out how to ease cuts to the allowance for pensioners.

Darren Jones, chief secretary to the Treasury, mentioned the funds could 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 thousands and thousands of pensioners, after a backlash over the choice.

Sir Keir mentioned “more pensioners” would be capable to declare the funds once more, underneath adjustments to be made on the Budget this autumn.

But the prime minister didn’t specify what number of pensioners could be entitled to say the funds, when the change would take impact, or how a lot it might price the federal government.

Conservative chief Kemi Badenoch has additionally mentioned she doesn’t imagine “millionaire” pensioners ought to be capable to declare the winter gas allowance.

But Reform UK, the Liberal Democrats and the Green Party have known as for the winter gas allowance to be restored in full.

More than 10 million pensioners misplaced out on funds price as much as £300 final yr after the Labour authorities restricted eligibility to those that qualify for pension credit score and different income-related advantages.

When requested on Sky News if ministers must be clearer on how they intend to vary winter gas funds, Jones mentioned “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 didn’t present additional particulars of who would qualify as a millionaire, including that the eligibility threshold could be reviewed within the “coming months”.

The winter gas 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 who claimed it, no matter their earnings or wealth.

But 10.3 million pensioners misplaced out final yr after the Labour authorities made adjustments to avoid wasting an estimated £1.4bn, with ministers arguing instant financial savings had been wanted because the Conservatives had left a “hole” within the public funds.

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

The Institute for Fiscal Studies (IFS), a suppose tank, has advised various methods the federal government may increase who is ready to declare the fee.

The earnings threshold for pension credit score, the primary profit to qualify to proceed to obtain winter gas funds, is at present £11,800 a yr for people and £18,023 for pensioner {couples}.

The IFS mentioned a brand new means-test would create “hassle” for pensioners and “would no doubt result in many not claiming”.

It would additionally “imply a lot of administrative cost for what is a fairly small benefit”, the IFS mentioned.

Resolution Foundation, a suppose tank, mentioned there have been “huge doubts” over how a brand new means-test would work, and estimated that increasing eligibility for pension credit score by 10% may price £2.5bn, greater than the unique winter gas lower was meant to avoid wasting.