Rachel Reeves axes winter fuel payments for millions of pensioners - live
Chancellor Rachel Reeves suggests the possibility of increasing the salaries of public sector workers by more than the rate of inflation.
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Rachel Reeves has announced her strategy to address a projected budget shortfall of £22 billion, which involves reducing winter fuel payments and scaling back on infrastructure initiatives.
During a recent address in Parliament, the chancellor criticized the former Tory administration for hiding the actual financial condition of the public sector. She disclosed the findings of the Treasury spending review that she had initiated.
Ms Reeves announced that she has made the tough choice to stop giving the winter fuel payment to those who do not receive pension credit or other benefits that are tested for financial need. This change will take place starting this year.
A brand new Value for Money Office, a promise from the Labour party, will begin operating immediately to pinpoint and suggest areas where the government can cut expenses in the current fiscal year, she explained.
The government plans to make significant reductions in public spending to fill the gap in the budget. This could result in the cancellation of projects such as the road tunnel near Stonehenge and Boris Johnson's New Hospital program.
Reeves Accuses Tories Of False Hope
Rachel Reeves informed members of Parliament that the Conservative party provided the country with misleading optimism.
The Chancellor stated in her budget announcement: "The financial legacy left by the last government is unacceptable."
After the scandal of 'partygate', when trust in politics hit rock bottom, they misled Britain with empty promises. While people were struggling with the high cost of living, they offered unrealistic solutions that were not feasible.
Roads that were never constructed. Public transportation that never showed up. Hospitals that never saw a single patient.
"They spent money freely, confident that someone else would cover the cost. And surprisingly, during the election, they promised to continue this spending spree if elected."
Salma Ouaguira published a new blog post on July 29, 2024 at 6:00 PM.
Union Welcomes First Step In Civil Servant Pay Rise
Mike Clancy, the head of the Prospect union, expressed his approval of a 5% salary increase for government employees, calling it a positive initial move.
He stated that during his meeting with the new cabinet office ministers last week, along with other civil service unions, he emphasized that members were looking for a different way of working with the government. This new approach should be based on respect and an acknowledgment of the important role that members have in carrying out the government's tasks.
Although we are glad to see a big increase in pay and a better position compared to other government workers, we still think that the way pay is determined is flawed and cannot be fixed.
We have already shown that we want to work positively with ministers and officials to create a system that works well and gives fair rewards and advancement.
Salma Ouaguira posted on July 29, 2024 at 5:50 PM
Reeves Blames Tories For Pension Cuts
Government employees will be getting a salary increase, but 10 million retired people will not be receiving winter fuel payments as the Chancellor tries to solve a £22 billion deficit in public funds.
Rachel Reeves mentioned that she was faced with tough choices while pointing out that the previous government had not accounted for £21.9 billion in commitments, which had been hidden from the public.
In a speech to Parliament, she outlined the need for urgent steps to fill the £5.5 billion deficit, with further measures to be discussed in the upcoming Budget on October 30th.
However, Jeremy Hunt, the previous person in the position, stated that approximately half of the funding gap was caused by her choice to give raises to many public sector employees that were higher than the inflation rate.
In a suggestion that taxes might need to go up, Ms Reeves stated: "I must inform the House that the Budget will require making tough choices to adhere to our fiscal rules regarding spending, welfare, and taxation."
She stated that the budget will focus on repairing the economic foundations and will be based on the principles that the new government was elected on.
One of the measures announced by the Chancellor on Monday included implementing a financial eligibility requirement for the winter fuel payment.
This plan is predicted to lower the amount of retirees getting the payment by 10 million, from 11.4 million to 1.5 million, and save about £1.4 billion this year.
Paying for things is managed separately in Scotland and Northern Ireland.
Salma Ouaguira posted in the blog on July 29, 2024 at 5:40 PM.
IFS Chief Denies Rachel Reeves' 'cover Up' Accusation
Paul Johnson, the head of the Institute of Fiscal Studies, has denied Rachel Reeves' statement that she did not know about the condition of public finances before the election.
Mr Johnson stated that individuals were kept uninformed about the asylum system, but he asserted that the Labour party was aware of the economic situation.
Posting on social networking sites, he stated:
Salma Ouaguira posted a blog on July 29, 2024, at 5:30 PM.
Natwest Shelves Share Sale Plan
Plans to sell shares in the banking giant NatWest to the public will not go ahead because it is not a good way to use the money from taxpayers, according to the new Chancellor.
Rachel Reeves announced that the new Labour Government has decided not to follow the plans set by the Conservative party to sell off the remaining 20% share in the bank in a similar fashion to the "Tell Sid" campaign.
The previous administration had intended to start selling shares of NatWest to individual investors this summer, but this plan was postponed when a snap election was announced on July 4th.
Ms Reeves informed the House of Commons that they plan to completely sell their shares by 2025-26.
"After carefully reviewing the recommendations, I have determined that a retail share sale offer would result in substantial discounts, potentially costing taxpayers hundreds of millions of pounds."
"It would not be a good investment."
She said, "The plan will not move forward. It is not a good way to spend taxpayer funds, so we will not pursue it."
Salma Ouaguira shares some thoughts on July 29, 2024 at 5:23 pm.
Martin Lewis Says End To Winter Fuel Payments Too Narrow
The Chancellor's choice to stop giving winter fuel payments to all pensioners, except those receiving benefits, has been criticized as too restrictive considering the harsh winter ahead.
People over the age at which they receive state pension can now receive payments of no more than £300.
Starting this winter, only pensioners who are currently receiving pension credit will be eligible to receive a payment.
The government announced that changes to the winter fuel payments would result in a decrease in the number of pensioners receiving the benefits from 11.4 million to 1.5 million, leaving around 10 million without this support.
Martin Lewis, the creator of MoneySavingExpert, quickly pointed out that the focus of the payments was too limited given the upcoming winter. He stated that the energy price cap is expected to increase by 10% in October and remain high throughout the winter, resulting in energy bills nearly doubling from pre-crisis levels. This will make it unaffordable for millions of people.
He stated, "Furthermore, the Government now has a significant ethical responsibility to make sure that the 800,000 individuals who qualify for pension credit but are not receiving it are notified, educated, and supported during the application process."
They are developing a campaign to raise awareness, but they must ensure that it reaches every area - and, if feasible, actively and individually reach out to individuals.
Pension credit is a very important benefit that opens the door to many other advantages. Now, with the connection to the winter fuel payment, it is even more vital to make sure that fewer people do not receive it.
Salma Ouaguira July 29, 2024 at 5:17 PM
Cabinet Ministers Approve Pay Hikes For Public Sectors
Police officers in England and Wales will receive a 4.75% salary increase starting in September.
Yvette Cooper, the head of home affairs, announced that all police officers, regardless of their rank, will be getting additional money this year.
In a letter to parliament, she expressed appreciation for the important work of police officers who dedicate themselves to keeping us safe. She confirmed that the government will be implementing all recommendations from the Police Remuneration Review Body.
The Home Office has promised to give an extra £175 million to police forces in 2024-25 to cover the cost of a pay raise. The recommended increase of 4.75% is higher than expected, but it is necessary to fully accept and implement.
Police officers play a very important role in helping to achieve the Government's promises to keep the streets in Britain safe and to increase their presence in the community through neighborhood policing.
Some officers at the National Crime Agency are set to receive a 5% increase in their pay, which will be funded from the agency's current budget, according to a statement from Ms. Cooper.
Ms. Cooper stated that she believes it will greatly assist the agency in their mission to eliminate the most harmful organized crime organizations that operate in and target the UK.
The Minister of Justice, Shabana Mahmood, revealed a pay increase of 5% for certain prison officers and staff, specifically aimed at those who earn the least, and a 6% raise for judges.
Salma Ouaguira posted a blog entry on July 29, 2024, at 5:13 PM.
Chancellor's Speech: Rachel Reeves' Spending Cuts
Rachel Reeves has announced significant reductions in spending, following instructions for the Treasury to review the UK's government finances.
The chancellor explained that her goal was to "reveal the extent of the issues that have been discovered" since Labour took over, highlighting a £22 billion deficit left by the previous administration.
Take a brief glance at the major updates shared by Ms. Reeves during her speech in Parliament.
Salma Ouaguira Blog Post- July 29, 2024 at 5:09 PM
Schools Union Celebrates 5.5% Pay Raise
The head of a union for school leaders is happy about the extra money from the government to help pay for a 5.5% salary increase for teachers, especially since budgets are tight.
Paul Whiteman, leader of the school leaders' union NAHT, stated that educators and school administrators will be pleased with the pay raise that is higher than inflation. This shows that the new Government is committed to improving the relationship with the education sector.
Although wages are still lower than they were in 2010 when adjusted for inflation, a 5.5% increase is a big move in the right direction towards fully restoring pay to pre-2010 levels. This is something we have been advocating for a long time.
Right now, we are facing a serious problem with finding and keeping qualified staff in the education sector. This is mostly due to the fact that during the previous administration, the salaries of leaders and teachers were reduced by 20% when adjusted for inflation.
He went on to say, "We are happy that the Chancellor has agreed to provide extra funding for this well-deserved salary increase, especially since many school budgets are already limited."
Salma Ouaguira posted an entry at 5:02 pm on July 29, 2024.
Tories' Austerity Caused Growth Loss In Last Parliament
Finance Minister Rachel Reeves has stated that the Labour Party will not implement austerity measures again, despite pointing out that tough choices will need to be made in the upcoming budget.
The Labour MP for Normanton and Hemsworth, Jon Trickett, expressed his support for the chancellor's announcement on public sector pay. However, he pointed out that despite the government's efforts to cut public services and keep wages low, millions of people have been forced to rely on food banks. Trickett argued that the Conservative party's austerity policies have been a huge failure, especially when considering that the wealthiest 250 individuals in the UK have seen their wealth increase by £500 billion.
"Would I be able to persuade the chancellor to acknowledge that there are difficult choices to be made that we can embrace, and that we oppose the rigid dedication to this particular type of Tory austerity?"
Ms Reeves stated that it is important to properly compensate our armed forces, prison officers, police forces, nurses, and teachers for the work they do. She emphasized that this was achieved by fully implementing the recommendations of the pay review bodies.
I agree with Mr. Trickett that going back to austerity measures would not be a good way to manage our economy. It caused economic growth to plummet in the previous government term, leading to negative impacts on living standards and funding for public services.
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