In what will be considered a massive u turn the Chancellor Rachel Reeves has announced that that the government will restore winter fuel payments to 9million pensioners
All those with an income of less that £35,000 will have the payments of between £200 and £300 restored this winter
Around 2million people will lose out – they will initially get the payment but it will be clawed back through higher tax bills
The Treasury says the policy will cost £1.25billion but is not saying how it will be paid for. That will be left for the Autumn Budget. Will add to concern that more tax rises are coming
Reeves however is still defending her original decision, insisting that it was ‘right’ given fiscal circumstances at the time
She wrote on X
“It is right that we continue to means-test this payment so that it is targeted and fair.
That’s why we have acted to expand eligibility so no pensioner on a lower income will miss out.“
