Keir Starmer’s £4bn Winter Fuel Payment Disaster: Is Pension Credit the NEW Trap?

Published: Aug 20, 2024 Duration: 00:02:41 Category: News & Politics

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[Music] hold on to your hats folks new research is throwing a spanner in the works regarding the labor government's decision to means test the winter fuel payment it turns out that the savings they hope to make could vanish faster than your last slice of pizza at a party according to the latest findings an uptick in claims for pension credit could leave prime minister sir starmer and Chancellor Rachel Reeves wrestling with a staggering 4 billion pounds benefits Bill last month Ms Reeves announced the government's plan to stop the universal winter fuel payment for pensioners in the past those of state pension age could snag up to 300 lounds off their energy bills during the chilly winter months but now only those who are financially strapped and already on pension credits or other means tested benefits will be eligible talk about a plot twist M Reeves explained that this policy was introduced because labor has inherited a projected overspend of 22 billion from the conservatives so it's a bit like trying to fix a leaky roof while the rain is pouring down the chancellor estimates that means testing the winter fuel payment could save the treasury up to 1.4 billion pound each year sounds great right but hold your horses a fresh report from the think tank policy in practice suggests that if the 850,000 retirees eligible for pension credit start applying we could be looking at a 3.8 billion pounds Bill instead to qualify for pension credit claimants must have a weekly income below £218 and 15 for singles or £332 and 95 for couples it's seen as a Gateway benefit to other perks like a free TV license for those over 75 and housing benefit so it's not just about the cash it's about the whole package Steve web a partner at Lane Clark and peacock has previously raised eyebrows over the likelihood of a surge in DWP benefit claims but he's also warned about the potential impact on public spending it's a classic case of you win some you lose some and right now it feels like we might be losing a bit more than we bargained for so what does this all mean for you well if you're a pensioner or know someone who is it's time to keep an eye on those benefits and see if you qualify for any support in the end it's a tangled web of policies and potential pitfalls so what do you think will the means testing save money or just create a bigger mess let me know in the comments below

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