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Rachel Reeves has perhaps opened up a major debate about state support to all citizens with her announcement that the pensioners’ Winter Fuel Payment will now be restricted to those claiming means tested benefits. It was perhaps odd that it was paid to any pensioner be they millionaire or pauper. But it follows on from the Tory move to stop giving free TV licenses to all pensioners over the age of 75. Are we now about to see an acceleration away from non-means tested ‘benefits’? Age Concern list some of these benefits:
· Attendance Allowance · Bereavement Support Payment · Carer's Allowance · Disability Living Allowance · New style Employment and Support Allowance · Personal Independence Payment And the state pension itself of course. Just lately I’ve noticed that Nye Bevan’s phrase ‘socialism is the language of priorities’ has been tossed around by the 'grown-up' politicians to isolate the rebel Labour MPs who voted for ending the two child benefit cap. Other non-means tested benefits might also catch Reeves’ eye. The absurd £10 OAPs’ Christmas Bonus surely must go. It was after all introduced by Ted Heath and has never been uprated. It is considered a joke. The only reason no Chancellor will abolish it is because they don’t want to be labelled a scrooge. It costs the Treasury getting on for £200 million. And what about concessionary bus fares? Hard-up local councils struggle to meet the cost of this, which is not fully funded by the Treasury. The biggest cost of all is of course the state pension. Shouldn’t this be means tested too, Rachel? Personally, losing the £200 Winter Fuel Payment isn’t going to break the bank, and as climate change is making our winters warmer anyway such things should be kept under scrutiny. But wouldn’t a better way of tackling our perpetual so-called fiscal emergency be to ensure that a fair, progressive taxation system is put in place? The state pension is not tax free, after all. But since Reeves has already boxed herself in with her stupid no change to personal tax rates pledge, she has now demonstrated that no small (amazingly New Labour) largesse will escape her attention. Austerity is back with a vengeance! The only thing missing from Reeves’ speech are some Thatcherite-style references to balancing household budgets. But it’s clear the elderly and the vulnerable (40% of pensioners who are eligible don’t claim pension credit) are in Labour’s sights. Further evidence, if it was needed that I made the right decision to leave the party.
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September 2025
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