UK politics: Winter fuel payments to be restricted as Reeves says there is £22bn spending shortfall – as it happened

Restrictions On Winter Fuel Payments For Poorer Pensioners, Reeves Reports

Reeves announces that pensioners who do not receive pension credit will no longer be eligible for the winter fuel payment.

This indicates that the benefits will only be directed towards less wealthy retirees.

She says that this is a choice she did not anticipate or desire to make.

However, this is a critical choice that she must make quickly.

This excessive spending cannot continue in the long run. If left uncontrolled, it poses a threat to the stability of our economy. Unlike the opposing party, I will never gamble with the economic stability of our country.

Therefore, it is up to us to make tough decisions in order to achieve additional savings this year. The magnitude of the issue we are facing requires us to make incredibly difficult choices.

I want to reiterate the promise we made in our manifesto to uphold the triple-lock, but I have made the tough choice to stop giving the winter fuel payment to those who don't get pension credit or certain other benefits starting this year.

The government plans to keep giving out winter fuel payments of £200 to households getting pension credit, and £300 to households getting pension credit with someone over 80. I want to make it clear that I didn't want to make this decision, and it wasn't what I was expecting to do. But these are decisions that need to be made quickly.

According to Age UK, around two million pensioners who rely on the winter fuel payment could be denied this benefit if Reeves's proposal is implemented.

The Institute for Fiscal Studies uncovered some 'startling' revelations about undisclosed Conservative spending policies.

The decision to reduce winter fuel payments is being seen as an example of conservative government austerity by the Scottish National Party.

Teachers across England will be receiving a salary increase of 5.5%, announced by the education secretary, Bridget Phillipson.

Police officers in England and Wales will be receiving a 4.75% increase in their pay, according to a statement from the Home Office.

Soldiers, sailors, and airmen of the military will receive a salary increase of 6%, according to the Ministry of Defense.

Prison guards will receive a 5% increase in pay, while judges will see a 6% raise, according to Shabana Mahmood, who serves as the secretary of justice.

OBR begins investigation to determine if Treasury provided false information on the expense of Conservative spending proposals.

The Treasury has announced its plans to save £5.5 billion this year and £8 billion next year in order to address the £22 billion deficit left by the Conservative party.

Jeremy Hunt criticizes Reeves for an audacious attempt to set the stage for tax increases.

Reeves decides not to implement limit on fees for adult social care

Reeves recommends that the budget, scheduled for October 30th, will likely include increases in taxes as well as reductions in spending and benefits.

Reeves announces that only elderly individuals facing financial hardship will receive winter fuel payments.

Reeves is saying that Sunak's idea for a new educational qualification should be cancelled because he did not allocate any funds for it.

Reeves states that following the suggestions of the pay review body will require an additional £9bn in funding that is not included in the Conservative party's current plans.

Reeves claims that the Conservative government failed to inform pay review bodies about the affordability of pay settlements.

Reeves discovered a £22 billion gap in the budget for this year when she took on the role of chancellor.

Reeves accuses the previous Conservative government of hiding information from the public.

Rachel Reeves will address members of Parliament about the money left behind by the Conservative Party.

Tory leadership hopefuls could receive a warning if they go too far in criticizing their rivals, according to the chair of the 1922 Committee.

Junior doctors' representatives have approved a pay agreement of 22.3% over a period of two years.

Hilary Benn mentions that the government is beginning to break down the NI Troubles Legacy Act, but indicates that finding a replacement will involve making concessions.

Number 10 confirms they will create a plan to correct the carer's allowance scandal.

Number 10 is committed to stopping strikes after a report suggests that junior doctors could receive a pay increase of 20%.

The decision by the Conservative government to prohibit puberty blockers has been deemed legal by the high court.

The Tories did not deserve to win the election because their policies were unclear, according to Badenoch as she officially announces her leadership campaign.

McFadden is determined that the government's top focus should still be on promoting growth, even if it means potential cancellations of infrastructure projects.

Minister claims that the Treasury statement will reveal that the Conservative government was avoiding acknowledging the reality of public spending.

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Rachel Reeves has eliminated the limit on social care costs and reduced payments for winter fuel. She has also revealed substantial reductions in funding for hospitals and road projects in an effort to address a £22 billion shortfall in public spending that she claims was hidden by the previous Conservative government.

Leaders of junior doctors in England have come to an agreement with the government on a new pay arrangement, potentially resulting in a 22.3% increase in their salaries over a span of two years.

Reeve has stated that the government will be implementing the suggestions from the public sector pay review completely. This will result in a 5.5% increase for teachers, a 6% increase for armed forces members, a 5% increase for prison officers, a 6% increase for judges and a 5% increase for senior civil servants.

We will be ending this blog post for now, but you can find our detailed analysis of the chancellor's announcement today by clicking here.

Rachel Reeves has just finished talking, so we will be giving you a brief overview and finishing up soon.

Reeves was questioned about the potential outcomes for other healthcare professionals after the announcement of a substantial pay increase for junior doctors. Praising Wes Streeting for securing the deal that Tory health ministers had struggled to achieve for months, she stated that the government intends to implement all recommendations from the pay review bodies for additional healthcare workers.

Reeves believes that previous cabinet ministers are being disrespectful by trying to shift the blame onto civil servants for what she calls "their errors and attempts to hide them."

The chancellor stated that civil servants give advice and ministers make decisions. Ministers approved spending without knowing how it would be funded.

The chancellor was questioned about targeting elderly retirees. She was also asked if the guarantee to protect pensions would be in danger by October.

The triple lock ensures that pensions increase in line with either inflation, average earnings, or 2.5%, whichever is the highest. However, Reeves stated that the government plans to uphold the triple lock.

Age UK Says 2m Pensioners Will Lose Winter Fuel Payment Under Reeves's Plan

In a recent press conference, Age UK announced their decision to reduce the winter fuel payment. According to Caroline Abrahams, the charity's director, this decision was made in order to better allocate resources.

We are firmly against the idea of means-testing Winter Fuel Payment (WFP) because we believe that around two million elderly individuals who rely on this money to keep warm during the winter could potentially be left without it. This could lead to financial hardship for them. On the other hand, wealthy seniors would not be significantly affected by this change, resulting in a clear social inequality.

One of the main reasons for this terrible result is that over a third of elderly individuals who are eligible for Pension Credit, which is a requirement for receiving Winter Fuel Payments (WFP) in this plan, do not actually receive it. This percentage has remained steady for a long time. Over 800,000 seniors with very limited incomes – less than £218.25 a week for single individuals and less than £332.95 for couples – who are already missing out on the Pension Credit they deserve to increase their incomes, will now also lose the WFP that helps them cover their heating expenses.

Moreover, there are approximately one million retirees who receive weekly incomes that are just slightly above the poverty line, less than £50 per week. These individuals will also be greatly affected by the removal of the Payment. Many elderly individuals in this category have shared that they face significant financial challenges. The proposed adjustment will further impact their ability to stay warm during cold weather.

Lastly, there is a third category of individuals who will struggle to keep their homes warm enough this winter due to the planned alteration: elderly individuals with slightly higher yet still restricted incomes, residing in energy inefficient houses and/or suffering from severe illnesses that require them to maintain a high thermostat setting for health reasons.

Now, my coworker Vicky Graham will be taking the lead.

When questioned about the possibility of increasing taxes in the upcoming budget, Reeves avoids giving a direct answer. Instead, she reiterates her promise not to raise income tax, national insurance, or VAT, emphasizing her resolve to not burden working individuals with higher taxes.

Sam Coates from Sky News is the first to ask a question at the press conference. He mentions that according to Age UK, two million pensioners who require it will no longer receive the winter fuel payment. On the other hand, junior doctors are receiving a 20% increase in their pay. This raises a question about the priorities of Rachel Reeves.

Reeves emphasizes the need to resolve the strike involving junior doctors' pay. She acknowledges that the decision to reduce winter fuel payments was tough. However, she believes it is crucial to focus on assisting the most vulnerable individuals and promoting higher participation rates.

Rachel Reeves has just begun talking at her Treasury press briefing. You can watch a live stream at the beginning of the blog.

She begins by recapping the points she made to members of Parliament at 3:30 in the afternoon.

"Fiscal Institute Unveils Tories' Shocking Spending Secrets"

The top two research organizations focused on public spending have released their reactions to the statement made by Rachel Reeves.

The Institute for Fiscal Studies believes Reeves had every right to feel upset, as they found some of the information regarding the spending inheritance to be quite surprising. Paul Johnson, the director of the institute, expressed this sentiment.

Rachel Reeves has every reason to feel upset. It was always apparent that the budget she took over was not enough to fulfill Labour's goals for public services, and more money would be needed eventually. However, the current funding pressures are even more significant than anticipated, making the situation even more challenging.

However, some of the details are quite surprising and raise challenging questions for the previous government. If the extent of these overspending and budget pressures was evident in the spring - and in many instances, there is no reason to think otherwise - then it is puzzling why they were not disclosed or addressed in the spring budget. The decision by Jeremy Hunt to cut £10bn from national insurance appears increasingly indefensible. Regarding asylum expenses, the choice to essentially halt the processing of claimants and allocate minimal funds for housing them seems like a poor policy decision. The new chancellor is justified in feeling frustrated.

The Resolution Foundation claims that this declaration will further complicate the budget in the upcoming autumn.

Today's evaluation focused solely on financial strains in the present year, but a lot of these will persist throughout this term, such as the additional funds allocated for public sector salaries (£9.4bn). Consequently, despite the recent reductions in public spending, the foundation highlights the significant difficulty the chancellor will face in reducing public sector debt without surpassing the £18bn annual cut already planned for unprotected departmental expenditures - or without increasing the £23bn in annual tax hikes introduced by the previous government that have yet to take effect.

The chancellor will face a tougher situation in the upcoming budget if she wants to keep some money aside - especially if there is negative news about economic growth or interest rates in the OBR's forecasts. If the OBR lowers its prediction for productivity growth by just 0.2%, it would result in a £17 billion deficit in the government's finances.

The foundation is cautioning that, when presenting the autumn budget, the government needs to keep emphasizing its goal of growth and concentrate on improving living conditions. The recent announcements mentioned reductions in certain transportation investments and cuts of £1.5bn to winter fuel payments. If these actions were to be repeated in the Autumn Budget, it could slow down growth and negatively impact living standards.

SNP Calls Cutting Winter Fuel 'Tory Austerity'

During their time in power, the Conservative government made decisions that Sarah Olney believed were harmful. She spoke out against these decisions and highlighted areas where she felt they had failed.

The current Conservative government will be remembered as one of the worst administrations in our country's history. Today's announcement has highlighted this even more.

Their disastrous small budget wasn't the only problem. We witnessed a continuous cycle of economic slowdown and decline due to prolonged turmoil and instability.

During the previous term in office, the Conservative Party increased taxes on diligent families multiple times in order to rectify their own errors.

However, Pete Wishart, the SNP's second-in-command in Westminster, informed members of parliament that reducing winter fuel payments seemed like conservative austerity measures.

Everyone, including the oldest members of our community, was aware of the inevitable financial shortfall worth billions of pounds. It seemed like the chancellor was the only one who was unaware of the looming crisis. Nevertheless, we anticipated her presence to clarify the magnitude of the situation.

Do you agree that reducing winter fuel payments for all elderly people seems like Tory austerity? Have there been any conversations with the Scottish government about this, considering it falls under their jurisdiction?

The Cabinet Office minister, Georgia Gould, has informed Members of Parliament in a written statement that senior civil servants will be getting a salary increase of 5%.

In the House of Commons, Rachel Reeves has completed her statement. Following this, three Conservative MPs raised points of order and mentioned that the supply and appropriation (main estimates) bill was presented to the Commons last Thursday, using pre-election spending figures instead of the new ones announced today. They argued that if Rachel Reeves was aware of the issues with those figures on Thursday, she may have misled the Commons.

The “estimates”, also known as public spending budgets, are approved by parliament to determine how taxpayer money is used. Without any discussion, the bill was approved on Thursday. Today's statement by Reeves highlights the importance of using the term “estimates” for these figures.

During the session in the Commons, Caroline Nokes, the recently appointed deputy speaker in charge, rejected the points raised as not valid. She mentioned that it was up to the government to determine how they wanted to present the estimates.