Rachel Reeves’ cutting of the Winter Fuel Payment has triggered a furious response. Should the payments now be restored? Vote now.
Should Rachel Reeves restore the Winter Fuel Payment immediately? Vote now (Image: GETTY)
Winter Fuel Payments are a crucial benefit that were issued to anyone of state pension age in the UK, but under Labour this will change.
While many rely on the payout to put towards their heating bills in the coldest months, from this year only state pensioners who are on means-tested benefits will qualify.
This means an estimated 10 million people will miss out.
The announced cut will save around £1.4bn, but has been met by fierce criticism from MPs and charities alike.
So much so the Daily Express’ new crusade to get the Chancellor to reverse her planned cuts has received the backing from MPs across the political spectrum.
Among those speaking out against the cuts is Dame Priti Patel, who slammed the decision as “shameless and cruel”.
An AgeUK petition urging Labour to reverse their planned cuts has also reached more than 325,000 signatures.
The petition reads: “Cutting the Winter Fuel Payment this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision.
“Millions of struggling pensioners won’t receive up to £300 they rely on to pay their bills.”
A Government spokesman said the decision is down to “the dire state of the public finances” meaning “this Government must take difficult decisions to fix the foundations of the economy”.
Further measures will be set out in the Chancellor’s Autumn Budget on Wednesday, October 30.
Should Rachel Reeves restore the Winter Fuel Payment immediately? Vote in the poll above and have your say in the comments.
Exact Date Announced for When All State Pensioners Will Begin Paying Tax After Triple Lock Adjustment
All state pensioners will start paying tax due to the Triple Lock (Image: Getty)
All state pensioners will have to start paying Income Tax on a specific date due to Triple Lock changes which increase the amount everyone on the state pension will get.
Every year, the government is mandated to increase the amount it pays out in pensions thanks to an apparatus known as the Triple Lock.
This means that the state pension payouts must be increased in line with one of three metrics: wage growth, inflation, or a flat 2.5 percent, whichever of these three is highest.
The figures are set in September for the following April tax year and although the final numbers are yet to be fixed, it is looking increasingly likely that wage growth will be the determinant for next year’s state pension triple lock rise.
State pensioners could be due an uplift of £517 a year if current wage growth inflation rates are to remain the same next month, experts have said.
It means that the state pension will pay out a total of £12,019 per year from April 6, 2025.
The current tax threshold is £12,570, so state pensioners who have no other income will just sneak under the threshold on income tax in 2025.
Technically, pensioners already pay tax today, but you would need other earnings, such as a job, a workplace pension withdrawal or savings interest, to tip you over the threshold.
But in 2026 it will likely become a problem for even those without other incomes. Another £517 rise in 2025 would put the state pension to £12,587 from April 6, 2026.
Although the tax would be extremely low – 20 percent of every pound above £12,570 would be £3.40 – it would mark the first time a pensioner with no other income would be liable to pay some income tax on their state pension, and if the amount of increase was higher, it would increase that tax bill.
Then from April 2027 the amount of tax would be higher still.
One solution would be to increase the Personal Allowance threshold, which has been frozen for years, but Labour has pledged to keep tax thresholds frozen until 2028 – a position it may have to revise sooner if it wants to avoid headlines about pensioners being taxed.
UK households set to be slapped with £2,500 tax rise ‘overnight’
Urgent stamp duty reform is needed, experts have warned, as the rules look set to change in a shake-up.
Homebuyers could be hit with £2,500 tax rise ‘overnight’, it has been warned, as the Cost of Living crisis continues across the country. Urgent stamp duty reform is needed, experts have warned, as the rules look set to change in a shake-up.
Coventry Building Society is calling for an overhaul of stamp duty which is a levy charged when someone buys a new home. Jonathan Stinton, the head of Mortgage Relations at Coventry Building Society, warned that these pending cuts will pull more Britons into paying stamp duty.
He explained: “The Treasury is taking in huge sums of property taxes while homebuyers are racking up the debt. A stamp duty bill can be thousands of pounds so if people don’t have that amount lying around they’ll probably need to borrow more to cover the tax on their home.
“In seven months’ time the scale is set to tip even more in the Treasury’s favour, with the nil rate band set to halve to £125,000.” Chancellor Rachel Reeves will unveil the new Labour Government’s fiscal agenda during the Autumn Budget on October 30.
“Short term pain for the Chancellor could result in longer term gain for the broader economy,” Stinton added. “Reducing the burden on homebuyers doesn’t have to be too costly for the Treasury either –the Stamp Duty holiday in 2020 and 2021 proved that homebuyers can get a break and tax revenue can remain healthy.
“It may even benefit the economy as people could spend the extra cash on improving their new home, boosting the retail and services sectors and returning some tax revenue through VAT.” So far this year, homebuyers have paid £6.6bn towards the tax, £100m more than the £6.5bn paid over the corresponding period in 2023.
The tax take will increase further once property purchasers have to start paying SDLT again on any property bought for over £125,000 from March 2025.
