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Government announces limited U-turn on winter fuel benefit cuts
An elderly lady sitting at home in Liverpool with her electric fire on

MORE pensioners will be able to heat their homes next winter as the government announced a limited U-turn on its winter fuel benefit cuts.

However, neither Prime Minister Sir Keir Starmer nor Chancellor Rachel Reeves were able to say how many of the 10 million older people who lost the benefit last year will now have it restored.

The move has been driven by the cut’s massive unpopularity, given as a principal reason for the huge Labour losses in recent local elections and at the Runcorn by-election.

Ms Reeves said in Manchester: “The economy is in a better shape, but we have also listened to the concerns that people had about the level of the means test, and so we will be making changes to that.

“They will be in place so that pensioners are paid this coming winter, and we’ll announce the detail of that, and the level of that, as soon as we possibly can.

“But people should be in no doubt that the means test will increase and people will get more winter fuel payment this winter.”

In the Commons, Sir Keir gave no more details of the U-turn, and also dodged questions as to whether or when the government might scrap the equally cruel two-child benefit cap.

But pensions minister Torsten Bell told a Commons committee that, while more pensioners will be eligible, there is no prospect of the fuel benefit being made universal once more, with millions still likely to miss out.

He said: “On your question of is there any prospect of a universal winter fuel payment, the answer is no, but we will be looking at making more pensioners eligible.

“We are committed to the principle that there should be some means-testing and that those on the highest incomes shouldn’t be receiving winter fuel payments.”

Ms Reeves also announced a package of investment in transport infrastructure as part of her imminent spending review, expected to include significant measures of capital investment by the government, at the expense of current spending.

There was a particular focus on projects in the north and the midlands, including local transport for South Yorkshire, the north-east, the east midlands and Tees Valley.  

There will be funding for metro extensions in Manchester and the West Midlands, and there may be support for a new railway between Manchester and Liverpool.

 

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