Ed Miliband defends winter fuel payment U-turn

Ed Miliband defends winter fuel payment U-turn

Kate Whannel served as the political reporter covering the defense given by Energy Secretary Ed Miliband regarding Chancellor Rachel Reeves’ decision to cut winter fuel payments and the subsequent partial reversal. Miliband asserted that Reeves would not apologize for withdrawing the payment from over 10 million pensioners last year, citing the need to stabilize the economy. The decisions made by Reeves were deemed necessary to create flexibility, allowing for an extension of the payment to more pensioners in the upcoming winter season. The move was estimated to require a relatively small amount of funding, as outlined in the Budget, although concerns were raised by the Conservatives regarding the funding source.

In July of the previous year, the government initially announced the withdrawal of the winter fuel payment, valued at up to £300 annually, from over 10 million pensioners. This decision restricted eligibility to only those receiving pension credit or other means-tested benefits, amounting to roughly 1.5 million individuals during the last winter. However, amidst pressure from various organizations and its own party members, the Labour government decided to partially reverse the move, expanding eligibility to more than three-quarters of pensioners. Under the revised policy, nine million pensioners in England and Wales with an annual income of £35,000 or less will receive the payment in the upcoming winter season.

When questioned about the possibility of an apology, Miliband clarified that Reeves had been reluctant to implement the initial cut but felt compelled to prevent an economic crisis. He emphasized the stabilization of the nation’s finances since then and acknowledged the feedback received from the public. While upholding the principle of excluding the wealthiest pensioners from the payment, the decision to broaden the recipient pool was deemed justified by Miliband, crediting Reeves for the adjustment. Details on funding for the change, estimated at around £1.25 billion, were stated to be disclosed in the upcoming Budget.

Following mixed reactions, Labour backbenchers generally embraced the U-turn on the winter fuel payment, prompting further discussions on other cutbacks, including alterations to disability benefits. Reeves defended the government’s position, emphasizing the need for sustainability within the current system. Calls were made to address the two-child benefit cap and disability payments, with Prime Minister Sir Keir Starmer mentioning plans to address child poverty later in the year during a visit to Suffolk

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