Chancellor Rachel Reeves has defended Labour’s controversial decision to cut winter fuel payments for pensioners. Speaking to MPs on Tuesday, Reeves described the move as “tough” but “right” given the difficult financial conditions.
The cut, which affects about 10 million elderly people, is expected to save the Treasury £1.4 billion this winter.
Reeves told the House of Commons that the government is taking action to encourage uptake of pension credit by low-income pensioners, ensuring they remain eligible for winter fuel payments.
She noted that the fuel price cap is lower than last winter, and the state pension will be £900 higher, helping pensioners absorb the lost benefit.
Reeves was also questioned about the upcoming October Budget. She stated, “I’m not going to speculate about what will be in the budget, but I’m absolutely determined to ensure that working people are better off under the last government.”
The Chancellor emphasised her commitment to reducing the tax burden, which she said had reached its highest level in 70 years under the previous administration.
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