Gordon Brown proposes excluding top income tax bracket from winter fuel payments

; but to me, the issue is nobody should be pushed into poverty if they’re doing the right thing.»

«Nobody who’s working hard or nobody who’s served the country well over their lifetime should be pushed into poverty if we can avoid it, and I believe that that’s what he’s [Keir] is really thinking about, a fairness guarantee for pensioners.»

Sir Keir announced that he would «look» at making more pensioners eligible during PMQs earlier on Wednesday.

He told MPs: «I recognise that people are still feeling the pressure of the cost of living crisis, including pensioners.

«As the economy improves, we want to make sure people feel those improvements in their days as their lives go forward.

«And that is why we want to ensure that as we go forward, more pensioners are eligible for winter fuel payment.»

While it appears a full reversal will not be implemented, the Treasury could raise the threshold at which pensioners can qualify for winter payments, which is currently £11,500.

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The decision follows significant backlash from Labour MPs, who blamed the policy on the party’s poor performance at the local elections this month.

Means-testing the winter fuel payments, worth up to £300, was one of the first policies brought in by the Labour government.

Overall, the number of pensioners eligible for the payment was slashed from 11.4 million to 1.5 million.

The government argued it would save £1.5bn each year and put the public finances under control, after claiming the Tories left behind a larger-than-expected fiscal black hole of £22bn.

However, in the aftermath of the May local elections – which saw Labour lose 189 council seats – more high-profile party figures began speaking out against the policy.

Governments must ensure fairness for pensioners, but there is a valid argument for excluding individuals on the top rate of income tax from receiving winter fuel payments, according to Gordon Brown. The former Labour prime minister expressed his approval of Sir Keir Starmer’s reconsideration of the unpopular decision to means-test the allowance, a benefit that Brown had introduced as a universal benefit during his tenure as chancellor in 1997.

Brown acknowledged the need to treat different communities in the country fairly, especially when they are facing challenges, emphasizing the importance of fairness for pensioners. He suggested that while there is a strong case for providing winter fuel payments to pensioners, those who are among the wealthiest in society could be exempted from receiving them.

The issue at hand, as Brown sees it, is that nobody should be forced into poverty if they are doing the right thing. This includes individuals who work hard or have served their country well over their lifetime, as they should not suffer financially if it can be avoided. He believes that this is the underlying principle that Keir Starmer is considering, a commitment to ensuring fairness for pensioners.

During Prime Minister’s Questions earlier in the week, Sir Keir indicated that he would explore the possibility of expanding eligibility for winter fuel payments to more pensioners. He acknowledged the financial pressures faced by people, including pensioners, due to the cost of living crisis, and expressed a desire for individuals to experience improvements in their daily lives as the economy progresses.

While a complete reversal of the policy may not be on the horizon, there is potential for the Treasury to raise the threshold at which pensioners qualify for winter payments, which currently stands at £11,500. The decision to reconsider the policy comes in response to significant criticism from Labour MPs, who attributed the party’s poor performance in the recent local elections to this issue.

The means-testing of winter fuel payments, which can amount to £300, was one of the initial policies introduced by the Labour government. As a result, the number of pensioners eligible for the payment was reduced from 11.4 million to 1.5 million. The government defended this move as a means of saving £1.5 billion annually and ensuring fiscal responsibility, citing a substantial fiscal deficit left behind by the previous Conservative administration.

However, following the disappointing outcome of the local elections in May, where Labour lost 189 council seats, prominent party figures began to voice their opposition to the policy. The debate over means-testing winter fuel payments continues, with considerations for both fiscal prudence and fairness to pensioners taking center stage in the political discourse.

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