The winter fuel payment U-turn in numbers
Summary
The government reversed its decision to cut winter fuel payments, restoring eligibility to many pensioners. From 2025-26, all pensioners will again receive payments, but those earning over £35,000 will have to repay it through taxes. This change increases the cost but reduces government savings compared to the initial plan.Key Facts
- Originally, winter fuel payments were to be limited to pensioners receiving pension credit.
- The change means about 9 million pensioners will now qualify for these payments.
- Payments are worth either £200 or £300 per household.
- The modification will lead to a projected cost of £1.25 billion, instead of the initial planned reduction to £0.5 billion.
- This adjustment means the government saves £450 million instead of £1.5 billion as initially targeted.
- The government may need to find other ways to manage a budget gap of approximately £1 billion due to this change.
- Almost 60,000 more pension credit claims have been processed following an awareness campaign.
- The Treasury plans to address the financial gap in the 2025 Autumn Budget without increasing long-term borrowing.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
