Reports from the UK Office for National Statistics or major energy market analysts

Labour Cuts Winter Fuel Payment for Pensioners, Lucy Powell Defends Means Testing

Sep 1, 2024, 09:29 AM

The Labour government in the UK has decided to cut the Winter Fuel Payment for millions of pensioners, a move that has sparked significant controversy and debate. The decision, which involves means testing, is part of a broader strategy to focus the payments on those 'most at need' and is reportedly aimed at preventing an economic downturn. Critics argue that the savings from this cut are minimal compared to overall government spending, particularly in light of the planned £12 billion expenditure on international climate aid. The policy has faced backlash from various quarters, including Labour MPs like Jessica Asato and policy experts, who are calling for a reconsideration. Additionally, research indicates that pensioners in non-Labour constituencies are disproportionately affected by the cuts. The government has also launched a campaign to increase the take-up of pension credit to mitigate the impact of the cuts. Lucy Powell, Leader of the House of Commons, has defended the policy, citing a potential 10% rise in energy prices as a factor.