Keir Starmer and Rachel Reeves will be insulated from energy bill hikes thanks to ‘cap’ on costs at their grace-and-favour Downing Street flats… as pensioners face struggle without winter fuel payments_ Hieuuk
Keir Starmer and Rachel Reeves are set to be insulated from the impact of energy bill hikes as pensioners face a struggle without winter fuel payments.
The PM and Chancellor only pay a taxable benefit on running costs at the grace-and-favour apartments – capped at 10 per cent of their ministerial salaries.
It means that they contribute around £3,000 to cover all utilities and other expenses, and the sum will not go up when the Ofgem cap increases by 10 per cent next month.
The situation could fuel a furious backlash at ministers for stripping around 10million pensioners of winter fuel allowance, worth up to £300.
The measure was approved by MPs last night despite more than 50 of Sir Keir’s own troops making their excuses to stay away from the division lobbies.
But critics have warned that thousands of pensioners on low-incomes could die through lack of heating when the weather turns.
Keir Starmer (pictured) and Rachel Reeves are set to be insulated from the impact of energy bill hikes as pensioners face a struggle without winter fuel payments
The PM and Chancellor (pictured) only pay a taxable benefit on running costs at the grace-and-favour apartments – capped at 10 per cent of their ministerial salaries.
The Treasury’s latest accounts set out that the PM and Chancellor have a tax liability for expenses relating to the use of their official apartments, such as heating and lighting
Sir Keir is living with his wife Victoria and their two children in the larger flat above No11, while Ms Reeves and her family are above No10.
Both have been contacted for comment.
Downing Street has previously argued it is impossible to separate costs for the flats from the wider ones of running offices and kitchens.
Under government rules, the PM and Chancellor have a tax liability for expenses ‘relating to the use’ of their official apartments, such as heating and lighting.
The value of the benefit is capped at 10 per cent of their ministerial salaries – so not including their MP pay.
According to the latest Treasury accounts for 2023-24, Jeremy Hunt had a benefit of £6,800 for the No10 flat. Rishi Sunak’s at No11 will have been slightly higher at around £7,400.
The actual cost to them will depend on their total taxable income, but is likely to be between £3,000 and £3,300. Council tax is paid separately.
Crucially the bill for Sir Keir and Ms Reeves will not change despite the energy price cap rising for the rest of the country next month.
Ms Reeves today defended previously claiming expenses for energy bills at her second home.
Records of the Chancellor’s energy bill claims show that she claimed back more than £3,000 over five years.
‘Being a constituency MP means that you have to have a house in London as well as, of course, living in the constituency, and that’s the same for all MPs. Those are long-standing rules,’ she told GB News after being asked if it was fair for taxpayers to pick up the bill to heat her second home.
