Forcing rich pensioners to pay back winter fuel allowance would be tax ‘nightmare’, Reeves warned
Rachel Reeves’ new plan for winter fuel allowance branded tax ‘nightmare’
- 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.