Chancellor Makes 'mistake' With Winter Fuel Payment - But She Has Chance To Make Corrections

2nd September 2024

Rachel Reeves has announced plans to means test the Winter Fuel Payment for pensioners - but with many elderly people set to miss out while still on lower incomes, it could cause headaches for the government when MPs return to parliament.

The decision by the new Labour Chancellor Rachel Reeves to axe the £300 Winter Fuel Payment for 10 million pensioners forever is probably the biggest domestic headache for Prime Minister Sir Keir Starmer as MPs return to Westminster from their summer holidays this week.

It may soon lead to the first big climbdown by the incoming government.

In the first few weeks after winning July's general election, Labour has used its honeymoon to blame the last Conservative government for the poor state of the nation and the dim prospects for recovery.

At the same time as the cutbacks for the elderly, the chancellor announced she had found the cash to fully fund the above-inflation pay awards for the public sector and to buy off strikes by rail and doctors' unions.

Read he full article on Sky News HERE