Rachel Reeves has been accused of causing the “unnecessary suffering” of thousands of pensioners following the cuts to Winter Fuel Payments. The Chancellor’s decision to means-test the allowance faced fierce backlash as only those claiming certain benefits, such as Pension Credit or Universal Credit, are now eligible. Simon Francis, coordinator of the End Fuel Poverty Coalition, called on Ms Reeves to reinstate the vital payments or put “thousands of older people” at risk.
He said: “The Chancellor’s cuts to Winter Fuel Payments last year caused unnecessary suffering for thousands of older people, especially those who just missed out on the payments or have disabilities.” Mr Francis added that the new Warm Homes plan, which could help 300,000 homes save money on energy bills, also needs to be taken more seriously by the Government.
He said: “Reports in the media suggest that she is now looking to take an axe to the Labour Manifesto commitment to double spending on a Warm Homes Plan.”
He warned that houses in fuel poverty face “long-term consequences” if there are any changes in funding for the Warm Homes Plan.
This comes after the think-tank the National Institute of Economic and Social Research (Niesr) claimed economic growth would be weaker than previously expected this year.
A slowdown in domestic demand and global economic uncertainty will impact potential growth throughout the year, it said.
Its predictions put the UK economy’s growth at 1.2% in 2025 “amid low business confidence, high uncertainty and rising cost pressures”.
In February, Niesr predicted growth of 1.2%, but this change will result in lower tax receipts than previously expected.
The think tank concluded that Labour will now not be able to deliver its fiscal rules, such as ensuring that British national debt as a share of the economy falls and being on course for a budget surplus.