Displaying items by tag: means testing

Rachel Reeves has announced that more pensioners will qualify for winter fuel payments this year, following the backlash over Labour’s 2024 decision to cut the benefit for most retirees. While she confirmed the means-test threshold will rise, she did not specify by how much, and at Prime Minister’s Questions, Keir Starmer also failed to clarify how many of the ten million affected pensioners will regain eligibility. Labour’s original decision to means-test the payment reduced eligibility from 11.4 million to just 1.5 million, limiting it to pensioners receiving benefits like Pension Credit. The move, intended to save £1.5 billion annually, was part of an effort to address what Labour calls a £22 billion fiscal gap left by the previous government. Critics, including Kemi Badenoch, accused Labour of lacking preparation and transparency. Reeves insisted the government remains committed to easing winter costs for vulnerable seniors but acknowledged that specifics are still being finalised.

Starting in September 2026, all children in England whose parents receive Universal Credit will be eligible for free school meals, regardless of income. This change, announced by the Government, is expected to benefit around 500,000 more pupils and save families up to £500 a year. Education secretary Bridget Phillipson said the initiative will help lift 100,000 children out of poverty, though some analysts cast doubt on that figure. Currently, free school meal eligibility is limited to families earning under £7,400 annually. The reform marks a major shift and is part of a broader strategy to address child poverty. However, the Government faces pressure to go further - especially regarding the two-child benefit cap. While many charities and education leaders welcomed the move as a vital step, they stressed the need for automatic enrolment and additional support to ensure no child goes hungry. £1 billion has been set aside to fund the change up to 2029, with further announcements expected in Rachel Reeves’s forthcoming spending review.