A senior Labour minister has failed to guarantee that stressed British pensioners will get any further clarification about winter fuel payments at this week’s spending review. Rachel Reeves will deliver a major speech on Wednesday setting out the budgets for each government department, in which Britons will learn which areas of public spending are set for cuts or extra investment.
However pensioners are crying out for further details about Labour’s promised winter fuel u-turn, with the Government refusing to add any clarity. Being grilled on Sky News this morning, Tech and Science Secretary Peter Kyle refused to say whether pensioners will receive any further clarification this week at the spending review. Asked simply whether Ms Reeves will use this week as an opportunity to explain who will now be eligible for the winter fuel allowance and who is not, Mr Kyle dodged the question entirely.
He told Sir Trevor Phillips: “These issues are going to be dealt with in the run up to the autumn, where these decisions are going to be taken and announced.”
“But this is a spending review that’s going to set the overall spending constraints for government for the next three years, so you’re talking about two separate issues at the moment.”
Asked to clarify if that meant no additional details on winter fuel this week, Mr Kyle repeated: “I think what you’re going to see is the overall spending constraints and allowances for each government department.”
“Then each government department’s going to start talking about how it’s going to allocate [those resources”.
Sir Trevor summarised: “I’m taking that as a no!”
Mr Kyle insisted Ms Reeves will stick to her fiscal rules this week, which dictate how much the government can spend and borrow in order to keep the financial markets happy.
The spending review will take place just after midday on Wednesday, where Ms Reeves will reveal which departments are set for a spending boost, and which are set for a tightening of the belt.
She has very little room to manoeuvre, however, after borrowing rose to £20.2billion in April, £1billion higher than the same month last year, due to rising welfare and debt costs – despite increased tax revenue from employer National Insurance Contributions.
Ms Reeves must also comply with the Government’s two self-imposed key fiscal rules that daily spending is funded by tax revenue, not borrowing, and that debt falls as a share of national income by 2029/30.
Current forecasts project a slim £9.9billion surplus – the third-smallest on record – which leaves little room for unexpected shocks.
That limited “headroom” already shrank earlier this year due to sluggish growth and higher debt interest, prompting Ms Reeves to announce £14billion in savings, including £4.8billion in welfare cuts.