The UK government's reversal of cuts to winter fuel payments has raised scrutiny regarding its financial strategies and fiscal rules. Originally, the government aimed to limit payments to 1.5 million low-income pensioners receiving pension credit. However, following criticism, it has decided that from 2025-26, all pensioners will be eligible, although those earning above £35,000 will face a tax clawback. Analysts suggest that overall savings may be minimal. The campaign to increase pension credit claims has resulted in an additional 60,000 awards, which could complicate the fiscal landscape.
The government's decision to largely reverse cuts to winter fuel payments indicates a shift in their fiscal strategy after encountering widespread criticism.
The new plan states that all pensioners will receive winter fuel payments from 2025-26, despite higher-income individuals potentially facing clawback.
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