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Winter fuel payments to be centre stage at Labour Conference

ended 23. September 2024

Chancellor Rachel Reeves will be delivering her speech at the Labour Party Conference today, but it's what's happening on the conference floor that could matter more as the unions revolt and possibly stage a vote on her decision to axe winter fuel payments for 10 million pensioners. Free news agency, Newspage, asked experts whether a U-turn on this planned policy is now likely ahead of the Budget.

One economist, Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments, said: “Despite being presented as necessary, the decision to means-test the winter fuel payment has sparked widespread criticism across both sides of the aisle. Given the continued cost-of-living crisis and volatile energy prices, this is precisely the wrong time to withdraw support from those who may need it most. However, a U-turn on the winter fuel payment policy ahead of the October budget could raise questions about the government's resolve in making difficult fiscal decisions. The coming days will reveal whether the chancellor's winter fuel gambit will leave her policy out in the cold or secure her position as Labour's new Iron Chancellor.”

Additinal views will appear below until midday.

3 responses from the Newspage community

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Editor
Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
Chancellor Reeves faces a frosty reception at the Party Conference as party rebels threaten to turn up the heat on the controversial decision to axe winter fuel payments for millions of pensioners. With union revolt on the horizon, a significant show of dissent could embarrass the party leadership and potentially derail Reeves' fiscal strategy. Despite being presented as necessary, the decision to means-test the winter fuel payment has sparked widespread criticism across both sides of the aisle. Given the continued cost-of-living crisis and volatile energy prices, this is precisely the wrong time to withdraw support from those who may need it most. However, a U-turn on the winter fuel payment policy ahead of the October budget could raise questions about the government's resolve in making difficult fiscal decisions. The coming days will reveal whether the chancellor's winter fuel gambit will leave her policy out in the cold or secure her position as Labour's new Iron Chancellor.
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Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
This upcoming Budget shouldn’t be take take take without giving back something otherwise Labour are in danger of losing the confidence of the British public. The Halloween budget is crucial for Labour and the last thing we need is for Keir to have a clear out of his cabinet as well as his wardrobe before the year is out.
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Mark Scott
Director and IFA at Positive Advisers Ltd
I can understand Rachel's objective of avoiding putting money into wealthy people's hands. However, the bar for ceasing winter fuel payments of "pension credit" is way too low. I would have recommended they claw it back from higher-rate taxpayers via the tax return, in the same way families lose child benefit payments. This would keep the government's administrative costs low and reduce the overall bill from this benefit.