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As the Telegraph’s Ben Riley-Smith reports, Badenoch proposed means-testing the benefit when she was first running for the Tory leadership in the summer of 2022.
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Here’s the key Kemi Badenoch quote. When answering a question on 12 July 2022 about how she would help tackle the cost of living crisis if PM. pic.twitter.com/RvPbMGMRmO
— Ben Riley-Smith (@benrileysmith) September 3, 2024
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Badenoch said:
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There is a lot of dead weight in how we run government,” said the shadow communities secretary in the clip from 2022. “I have people in my constituency telling me that they don’t need the winter fuel payments that we give them because they can afford it. Why do we not have a more sophisticated mechanism for means-testing?
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The Badenoch campaign now says she was only proposing removing the winter fuel allowance from the most wealthy pensioners, not from the majority of pensioners (the Labour government’s proposal).
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And for completeness here’s the response from the Badenoch camp.
They’re drawing a distinction b/w ending winter fuel payments for the richest and Labour’s approach (which sees around 10 mill of the 11 mill pensioners currently getting the payments lose out). pic.twitter.com/eTzTs1VQC0
— Ben Riley-Smith (@benrileysmith) September 3, 2024
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Starmer is vulnerable on this issue because means-testing the winter fuel payment was not included in Labour’s manifesto. But it was in another recent election manifesto – the Conservative party’s in 2017, when Theresa May was PM. Her manifesto said:
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We will look at winter fuel payments, the largest benefit paid to pensioners, in this context. The benefit is paid regardless of need, giving money to wealthier pensioners when working people on lower incomes do not get similar support. So we will meanstest winter fuel payments, focusing assistance on the least well-off pensioners, who are most at risk of fuel poverty.
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Good morning. Keir Starmer is taking PMQs today. It is only his second PMQs as prime minister, but don’t expect fireworks, high drama and a defining party politial encounter. That is more likely when Starmer gets to face a permanent opposition leader, not Rishi Sunak, who is just working his notice period. And parliamentary business in the Commons today will be dominated by the publication of the final report from the inquiry into the Grenfell Tower fire. Starmer will be making a statement on this to MPs straight after PMQs, but most of our Grenfell coverage will be on a separate live blog.
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At his first PMQs, before the summer recess, Starmer came under pressure over the two-child benefit cap. Today the PM is likely to face questions about the government’s decision to means-test the winter fuel allowance for pensioners, and claims that millions of pensions who are not poor enough to qualify for pension credit will struggle to heat their homes this winter when they lose the payment (worth up to £300). As Pippa Crerar reports, MPs will vote on this next week.
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Just ahead of PMQs, internal Treasury figures that will help Starmer defend means-testing the winter fuel allowance have conveniently ended up in the hands of the BBC. Ministers have justified removing the benefit from most pensioners on the grounds that pensioners are generally much better off, compared to the population as a whole, than they were when Gordon Brown introduced the winter fuel allowance in 1997. That is largely because of the pension triple lock (introduced by the coalition). The triple lock ensures that state pension rises every year either in line with prices, earnings or 2.5% – whichever is higher.
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Next year the state pension will rise in line with earnings, which are currently rising faster than inflation (2.2% in July, although the Septembe figure is the benchmark) or 2.5%. The latest earnings figures are not due out until next week. But Faisal Islam, the BBC’s economics editor, says he has seen internal Treasury figures showing that, on the basis of those earning figures, the state pension will rise by more than £400 next year. In his report Islam says:
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The Treasury expects the new full state pension to be boosted above inflation by over £400 a year in cash terms, as a result of the triple lock next April.
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The internal working calculations, seen by the BBC, reflect the near certainty that the state pension will be increased by average earnings figures released next week.
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This will take the full state pension for men who were born after 1951 and women born after 1953 to around £12,000 in 2025/26, after the £900 increase last year.
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Pre-2016 retirees, who may have been eligible for the secondary state pension, are likely to see at least a £300 a year increase in the basic state pension to £9,000 in 2025/26 under the old system.
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The Treasury will be hoping that, because £400 is more than £300, MPs will conclude that this will more than compensate for the loss of the winter fuel allowance. It is not that simple, of course, because the rise in the state pension is meant to help with all the multiple extra costs and price rises pensioners face over 12 months, not just the loss of a single payment. But it might take the edge off some of the concern about the winter fuel allowance policy.
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Here is the agenda for the day.
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11am: The final report from the inquiry into the Grenfell Tower fire is published.
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Noon: Keir Starmer faces Rishi Sunak at PMQs.
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12.30pm: Starmer makes a statement to MPs about the Grenfell inquiry report.
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1.30pm: Conservative MPs start voting in the first ballot for the leadership contest. The ballot closes at 3pm and the results will be announced at 3.30pm.
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2.50pm: John Swinney, Scotland’s first minister, announces his programme for government in a statement to MSPs.
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If you want to contact me, please post a message below the line (BTL) or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.
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If you want to flag something up urgently, it is best to use social media. I’m still using X and I’ll see something addressed to @AndrewSparrow very quickly. I’m also trying Bluesky (@andrewsparrowgdn) and Threads (@andrewsparrowtheguardian).
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I find it very helpful when readers point out mistakes, even minor typos (no error is too small to correct). And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
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Main Events
How Kemi Badenoch defended removing winter fuel payments from wealthy pensioners
If Keir Starmer is asked at Prime Minister's Questions about Labour's plans for income capping the winter fuel allowance, he might be happy to quote K.Emi BadenochThe front-runner in the Conservative leadership race defended him.
The Telegraph Ben Reilly Smith Ms Badenoch reportedly proposed an income cap on benefits when she first ran for Conservative leader in the summer of 2022.
Key quotes from Kemi Badenoch: 12 July 2022, when answering a question about how she would help solve the cost of living crisis if she became Chancellor. pic.twitter.com/RvPbMGMRmO
— Ben Riley Smith (@benrileysmith) September 3, 2024
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Key quotes from Kemi Badenoch: 12 July 2022, when answering a question about how she would help solve the cost of living crisis if she became Chancellor. pic.twitter.com/RvPbMGMRmO
— Ben Riley Smith (@benrileysmith) September 3, 2024
Badenoch said:
“There's a lot of waste in the way the government operates,” the shadow communities minister said in a video in 2022. “There are people in my constituency who say they don't need the winter fuel subsidy because they can afford it. Why don't we have a more sophisticated means-tested mechanism?”
Badenoch's camp now argues that what she was proposing was to remove the Winter Fuel Allowance from the wealthiest pensioners, not from the vast majority of pensioners (as proposed by a Labour government).
For completeness, here is the response from the Badenoch camp.
They distinguish between ending winter fuel payments to the richest people and Labour's approach, which would lose out on around 10 million of the 11 million pensioners currently receiving the benefit. pic.twitter.com/eTzTs1VQC0
— Ben Riley Smith (@benrileysmith) September 3, 2024
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For completeness, here is the response from the Badenoch camp.
They distinguish between ending winter fuel payments to the richest people and Labour's approach, which would lose out on around 10 million of the 11 million pensioners currently receiving the benefit. pic.twitter.com/eTzTs1VQC0
— Ben Riley Smith (@benrileysmith) September 3, 2024
Mr Starmer is in a weak position on this issue because an income limit on winter fuel charges was not included in the Labour manifesto, but it was included in the most recent election manifesto, the 2017 Conservative manifesto under Theresa May as prime minister. Manifesto said:
In this context, we consider the Winter Fuel Grant, the largest benefit paid to pensioners. This benefit is paid regardless of need and provides funds to wealthier pensioners when lower-income workers do not receive similar support. We therefore make the Winter Fuel Grant means-tested, focusing support on the most disadvantaged pensioners who are most at risk of fuel poverty.
State pensions are expected to rise by more than £400 next year, according to leaked figures from the Treasury, Chancellor Keir Starmer said at Prime Minister Questions.
Good morning. Today, Prime Minister Keir Starmer will be taking on Prime Minister's Questions. This is his second Prime Minister's Questions, but don't expect any fanfare, drama or a decisive political showdown between the parties. That's more likely when Starmer takes on the Leader of the Opposition instead of Rishi Sunak, whose term is ending. And today's agenda in the House of Commons will be centered on the release of the final report of the Grenfell Tower fire inquiry. Starmer will make a statement on the matter to MPs immediately after Prime Minister's Questions, but most of the coverage of Grenfell will be on a separate live blog.
At his first Prime Minister's Questions before the summer recess, Mr Starmer came under pressure over the double child benefit cap. The Prime Minister is expected to be quizged today about the Government's decision to means-test the Winter Fuel Allowance for pensioners, arguing that millions of pensioners who are not too poor to qualify for the benefit will struggle to heat their homes this winter with the allowance – worth up to £300 – disappearing. Pippa Crerar Lawmakers are reportedly set to vote on the matter next week.
With Prime Minister's Questions looming, internal Treasury documents helping Starmer defend means-testing the Winter Fuel Allowance have conveniently been made available to the BBC. Ministers justified removing the allowance from the majority of pensioners by arguing that pensioners are generally much better off than the population as a whole since Gordon Brown introduced the Winter Fuel Allowance in 1997. This was mainly due to the triple lock on pensions (introduced by the coalition government), which ensures that state pensions increase each year in line with prices, earnings or 2.5%, whichever is higher.
Next year, state pensions will increase according to earnings. Earnings are currently rising faster than inflation (2.2% in July, based on September figures) or 2.5%. The latest earnings data is not due until next week. However, Faisal IslamThe BBC's economics editor said internal Treasury data showed that based on these incomes, people are looking at an increase of more than £400 in their state pension next year. His report Islam says:
The Treasury expects that as a result of the triple lock next April, the new fully paid state pension will rise by more than £400 a year above inflation on a cash basis.
Internal calculations seen by the BBC reflect that state pensions are almost certain to increase when average earnings figures are published next week.
This means the full state pension for men born after 1951 and women born after 1953 will be around £12,000 in 2025/26, after a £900 increase last year.
People who retired before 2016 and may have been eligible for a secondary state pension under the old system are likely to see their basic state pension increased by at least £300 a year, to £9,000 in 2025/26.
The Treasury will hope that MPs will conclude that £400 is more than £300 and therefore more than compensates for the loss of the Winter Fuel Allowance. Of course, it is not that simple, because the increase in state pensions is meant to cover all the various extra costs and price increases that pensioners face over a 12-month period, not just the loss of a one-off payment. But it may ease some concerns about the Winter Fuel Allowance policy.
Today's agenda includes:
11AM: The final report of the investigation into the Grenfell Tower fire is published.
noon: Keir Starmer takes on Rishi Sunak at Prime Minister Questions
12:30 PM: Mr Starmer was making a statement to MPs about the Grenfell inquiry report.
1:30pm: Conservative MPs are beginning the first round of voting in the leadership race, with polls closing at 3pm and results announced at 3.30pm.
2:50 PM: Scottish First Minister John Swinney set out his plans to run his government in a statement to MSPs.
If you'd like to get in touch with me, you can post BTL (message with underline) or message me on social media. I can't read every message on BTL, but if you mention “Andrew” in your message I'll search for posts with that word and have a better chance of getting seen.
If you want to report something urgently, the best way is to use social media – I still use X, but messages to @AndrewSparrow show up immediately, I've also tried Bluesky (@andrewsparrowgdn) and Threads (@andrewsparrowtheguardian).
It's really helpful when readers point out mistakes, even small typos (I can fix even the smallest mistakes), and your questions are also really interesting – I can't promise to reply to all of them, but I will try to respond to as many as I can, either on BTL or on the blog.
