Rachel Reeves’ new plan for winter fuel allowance branded tax ‘nightmare’

PoliticsPersonal Finance
5 Jun 2025 • 9:48 PM MYT
The Independent
The Independent

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  • Chancellor Rachel Reeves is expected to reinstate universal winter fuel payments for pensioners, reversing a previous policy change.
  • The government plans to recover the grant from higher-income pensioners through increased taxes, potentially affecting those with household disposable incomes above £37,000, according to The Times.
  • The policy change could cost around £700 million, with the full plan to be detailed in the autumn Budget.
  • Silver Voices criticised the plan as an "administrative nightmare" that could draw more pensioners into the tax system.
  • The announcement follows statements from pensions minister Torsten Bell indicating the allowance would not be restored universally, and Keir Starmer's stated intention to expand access to winter fuel payments.

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