Winter fuel payment update as 500,000 pensioners | U.Ok.Finance News
Half a million more pensioners will probably be denied winter fuel funds by the top of the parliament, an evaluation has predicted.Former pensions minister Sir Steve Webb instructed yearly on average about 100,000 further older people will lose their winter fuel funds by 2030 as a result of the new means check is frozen.Ministers have confirmed that the brink will probably be frozen for the approaching years, dragging in more pensioners with inflation and rising state pensions by way of the triple lock.Sir Steve, companion at pension consultants LCP mentioned: “The Government’s own figures clearly suggest that they expect the number of losers from the new policy to rise each year.“If the £35,000 threshold is frozen, then annual increases in state and private pensions will drag more and more pensioners over the limit each year, losing their winter fuel payment in the process. With around 2 million pensioners currently over the £35,000 threshold, this number could easily rise by another half a million by 2030.“This could end up being another way in which governments use inflation to quietly raise additional revenue year-by-year.”Under the new system, all pensioners will routinely obtain a payment of £200, or £300 for over-eighties. Couples who’re each pensioners will get half the payment every, which will probably be clawed back by way of the tax system.Officials say that about two million pensioners who’ve incomes of more than £35,000 is not going to get funds this 12 months.However, they estimate that the coverage will in the end save £450 million a 12 months in contrast with the common system that was in place till final 12 months, a determine Miliband mentioned was “not to be sneezed at”.Sir Steve mentioned: “Our analysis also suggests that the new policy will raise less money next year than the headline figure quoted of £450m. Assuming an initial yield of around £350million, roughly two thirds of this will be wiped out by higher pension credit costs. The net revenue from the policy is likely to end up barely a tenth of the amount banked by the Chancellor when she presented her last Budget”.Announcing the U-turn, following a Daily Express marketing campaign on the difficulty, Chancellor Rachel Reeves mentioned: “It will be still means-tested, but at a higher level, we’ve listened to people’s concerns around the level of the means test.“Because of changes we’ve made and the stability we’ve brought back to the economy, we are able to increase that amount.”
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