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Number 10 has said scrapping the winter fuel allowance for all but the poorest pensioners is now “not happening”.

Earlier on Friday, Sky News revealed the option was under live discussion between No 10, the Treasury and the Department of Work and Pensions as a way to claw back some taxpayer funds from the elderly.

The prime minister is expected to fight the next election on a pledge to keep the pension triple lock despite its spiraling costs, and has been looking at various options to cut back welfare spending as he looks to pave the way for pre-election tax cuts, while also remaining committed to the pensions triple lock at the next election.

One government figure told Sky News that while the option was part of conversations about how to find savings in the welfare bill, No 10 didn’t want to risk public speculation on such an “emotive” issue that had divided views across Whitehall.

“Mr Sunak was interested in the option, while the chancellor and work and pensions Secretary Mel Stride were less enthusiastic about means testing pensioner benefits,” according to one person familiar with discussions.

One source told Sky News No 10 believes officials in DWP or the Treasury leaked conversations around the winter fuel allowance in order to “kill it off”.

Government figures earlier told Sky News the prime minister “understands the politics” of the triple lock and knows he has no option but to recommit to it, given the importance of the pensioner vote to his campaign and the Lib Dem recommitment to the policy in recent days.

Labour is also expected to maintain the triple lock in its manifesto.

“Rishi understands the politics of the triple lock, although he thinks it’s far from fair from an intergenerational point of view, so he’s trying to redress that a little bit,” said one government insider.

Politics latest – Labour would stick with Tory spending plans, frontbencher suggests

Another person familiar with discussions told Sky News earlier that if the government did decide to “keep the triple lock but take away the winter fuel allowance from rich pensioners. I think people will understand that and think it’s fair”.

Mr Sunak has so far refused to commit to honouring the triple lock – which increases pensions each year by whatever is highest out of average earnings, inflation or 2.5%.

However, insiders say it is inevitable that he will and is now trying to find other ways to offset the cost of the commitment, with the triple lock forecast to cost as much as £45bn a year by 2050.

Winter fuel payments go to about 8.4 million households and is forecast to cost £2bn this year, according to the Institute for Fiscal Studies. A small – and falling – proportion are in receipt of pension credit.

What is the winter fuel allowance?

The Winter Fuel Payment is a tax-free handout from the government to help people of pension age pay for their fuel and heating bills.

Ministers set a date each year that defines eligibility. For 2023/204, anyone born before 25 September 1957 could get between £250 and £600 to help pay for bills this winter.

The exact amount depends on things like age and whether other people in your household also qualify.

However, it does not take into account financial status, meaning even the wealthiest pensioners can receive the state benefit.

Pensioners can opt-out of receiving the payments, but last year the numbers doing so dropped. Charities said this showed even middle class retirees were struggling with rising energy bills.

Wealthy celebrities like Lord Alan Sugar have also complained about the difficulties in opting out and donated their allowance instead.

Some MPs have previously called for a means-tested system, but the idea has not become mainstream.

Carl Emmerson, deputy director of the IFS, said over the long-run, the cost of retaining the triple lock will dwarf the saving from even getting rid of the winter fuel allowance entirely, pointing out that since 2010, the triple lock has increased state pension spending by £11bn a year to date.

‘Slap in the face for pensioners’

Rachel Reeves, Labour’s shadow chancellor, said the Conservatives committed to keeping winter fuel payments and the triple lock in their 2019 manifesto.

“They should not be breaking those commitments”, she said. “One thing I would be doing if I was chancellor today would be to have a proper windfall tax on the huge profits that the big energy giants are making and use that money to help people with their bills.”

Liberal Democrat Work and Pensions Spokesperson Wendy Chamberlain MP said: “Scrapping the winter fuel allowance would be a slap in the face for pensioners facing soaring energy bills this winter.

“Rishi Sunak must be living on another planet if his thinks this is the answer to the country’s problems. Pensioners have worked hard and paid their taxes all their lives, they shouldn’t be made to pay the price for the Conservative Party crashing the economy. “

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A government spokesperson earlier said the government was committed to the triple lock and said it would not comment on speculation ahead of its annual autumn review of benefits and pensions.

“We have protected pensioners with the biggest State Pension increase in history this year as well as boosting Pension Credit – worth around £3,500 a year for those on the lowest incomes,” the spokesperson said.

“On top of Winter Fuel Payments, pensioners will get another £300 this winter to help with essential costs, and we are bearing down on inflation to make everyone’s money go further.”

But officials also noted that there are 200,000 fewer pensioners in absolute poverty than in 2009/10, with the basic state pension over £3,050 a year higher than in 2010.

Winter fuel allowance is only one spending area the government is looking at ahead of the autumn statement in November.

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Lib Dems vow to protect triple lock

One figure told Sky News that the Department of Work and Pensions is also considering whether to cut working-age benefits in real terms ahead of the general election as the PM looks for space to create tax cuts. This could mean breaking the link with updating benefits in line with inflation.

PM looking for space to create tax cuts

The prime minister wants to be able to offer tax cuts in the run-up to the election, with one minister suggesting that scrapping the second leg of HS2 as well as a real-term cut in benefits might give the PM more room to do this.

One option being discussed is whether to increase the threshold for paying inheritance tax from £1m to £1.5m in order to appeal to middle-class voters in more affluent counties.

“It might be helpful in some seats,” said a figure familiar with discussions, who said scrapping the tax completely carried political risk given it would be framed as a tax break for the very rich.

The issue of the rising tax burden is vexing many Conservative MPs and has been put squarely on the agenda on the eve of the Conservative Party conference after the IFS released analysis showing that Mr Sunak and Boris Johnson have overseen the largest set of tax rises since the Second World War, and will cost the equivalent of £3,500 per household.

The IFS also estimates that by the time of the next general election the tax burden will have risen to 37% of national income and also warns that the shift to higher taxes may never be reversed, piling the pressure on the prime minister to cut taxes as his party gathers in Manchester this weekend for its annual party conference.

Pressure from Tory MPs

Former Prime Minister Liz Truss, who is due to attend the Great British growth rally fringe in Manchester on Monday, alongside former cabinet ministers Priti Patel and Jacob Rees-Mogg, said on Friday: “We should always be seeking to reduce the tax burden, especially when there is so much pressure on family budgets.

“This unprecedentedly high tax burden is one of the reasons that the British economy is stagnating and why we need to cut taxes to help make Britain grow again.”

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Tories ‘believe in low tax’ – MP

Another senior Conservative MP said some colleagues were in despair over Mr Sunak’s leadership and refusal to cut taxes. “We had a majority of 80 and now we’d be lucky to get a majority. We need to demonstrate Conservative values to make sure people can keep more of their money.”

Treasury minister Andrew Griffith told Sky News the government still believes in “reducing the tax burden” but their priority is bringing down inflation.

Asked if we can expect some tax cuts before the next general election, he said: “No, that’s absolutely not what I’m saying and I think any responsible treasury minister wouldn’t come on your programme this morning and make specific commitments.”

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Home Secretary Shabana Mahmood threatens Trump-style visa ban on three countries as part of radical asylum reforms

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Home Secretary Shabana Mahmood threatens Trump-style visa ban on three countries as part of radical asylum reforms

Home Secretary Shabana Mahmood plans to impose Trump-style visa bans on three African countries if they fail to take back illegal migrants as part of “sweeping reforms” of the UK’s immigration system.

Angola, Namibia and the Democratic Republic of Congo will face visa sanctions, blocking their tourists, VIPs and business people from travelling to Britain if they do not improve co-operation on removals.

Ms Mahmood said: “In Britain, we play by the rules. When I said there would be penalties for countries that do not take back criminals and illegal immigrants, I meant it.

“My message to foreign governments today is clear: accept the return of your citizens or lose the privilege of entering our country.”

The move was reportedly inspired by President Trump’s homeland security secretary, Kristi Noem, who has overseen the mass deportation policy in the US, according to The Times.

Ms Mahmood will address the House of Commons today to lay out “the most sweeping reforms to tackle illegal migration in modern times”, effectively since the Second World War.

Modelled on the Danish system, the aim is to make the UK less attractive for illegal immigrants and make it easier to deport them.

More on Migrant Crisis

Under the plans, the home secretary will bring forward a bill to change how article 8 of the European Convention on Human Rights (ECHR), the right to family life, is applied in migration court cases.

The Home Office has said it’s seen a rise in the use of rights-based appeals in recent years as a means of avoiding deportation.

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‘Illegal migration is creating division across UK’ – Shabana Mahmood

The changes would see only those with immediate family in the UK, such as a parent or child, being able to use article 8 in future.

The home secretary, who has been in the job for 73 days, also plans to change the law so that multiple attempts to appeal against refusals for asylum will no longer be allowed.

Furthermore, refugees would face a 20-year wait before they can apply for permanent settlement.

The Home Office said the “golden ticket” deal has seen asylum claims surge in the UK, drawing people across Europe, through safe countries, on to dangerous small boats.

Under the proposals, refugee status would become temporary and subject to regular review, with refugees removed once their home countries are deemed safe.

Housing and weekly allowances would also no longer be guaranteed.

Mahmood is new hard woman of British politics – and potential successor to Starmer


Amanda Akass

Amanda Akass

Political correspondent

@amandaakass

We’re told that Shabana Mahmood, the still new home secretary, is “a woman in a hurry”.

She’s been in the job for 73 days – and is now announcing “the most sweeping reforms to tackle illegal migration in modern times” – effectively since the Second World War.

Her language is not just tough – it’s radical. Not what you’d have expected to hear from a Labour home secretary even just a few months ago.

“Illegal migration”, she believes, “is tearing our country apart. The crisis at our borders is out of control”.

Her team argues that those never-ending images of people crossing the Channel in small boats have led to a complete loss of faith in the government’s ability to take any action at all – let alone deliver on its promises.

The political reality is that successive failures of Tory and Labour ministers have fuelled the inexorable rise of Reform.

Read more

The shake-up also envisages the introduction of safe and legal routes to the UK in a bid to cut dangerous journeys across the Channel.

A new independent body – similar to one in Denmark – is planned to fast-track the removal of dangerous criminals, and last-minute appeals would be expedited.

Ms Mahmood has denied that her plans are “racist”, instead describing them as a “moral mission”.

She said illegal immigration was causing “huge divides” in the UK, adding: “I do believe we need to act if we are to retain public consent for having an asylum system at all.”

What measures is the home secretary set to announce?

  • Refugee status will become temporary and subject to regular review – with people facing removal as soon as their home countries are deemed safe
  • Asylum seekers will face a 20-year wait before they can apply for permanent settlement
  • New safe and legal routes to be introduced for those genuinely fleeing war and persecution
  • Changes to the legal framework that will require judges to prioritise public safety over migrants’ rights to a family life – amid fears that Article 8 of the European Convention on Human Rights has been used to frustrate removals
  • Using facial age estimation technology, a form of AI ,to rapidly assess a person’s age in a bid to deter people who pretend to be children in an attempt to claim asylum
  • Capped work and study routes for refugees will also be created  

Read more:
Shabana Mahmood is the new hard woman of British politics
Here’s how the Danish migration model works

Speaking on Sunday Morning with Trevor Phillips, Ms Mahmood said she had observed how illegal migration had been “creating division across our country”.

She added: “I can see that it is polarising communities across the country. I can see that it is dividing people and making them estranged from one another. I don’t want to stand back and watch that happen in my country.”

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Govt ‘lacks empathy and understanding’ for refugees

Prime Minister Sir Keir Starmer said: “Britain has always been a fair, tolerant and compassionate country – and this government will always defend those values.

“But in a more volatile world, people need to know our borders are secure and rules are enforced. These reforms will block endless appeals, stop last-minute claims and scale up removals of those with no right to be here.”

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Anti-asylum seeker protest in East Sussex

Conservative Party leader Kemi Badenoch welcomed Ms Mahmood “finally talking seriously about tackling illegal immigration”, but called the plans “weak”.

She said: “If the home secretary actually wants to cut illegal immigration, she should take up my offer to sit down with her and work on a plan that will actually stop the boats, rather than a few weak changes that will meet the approval of Labour MPs.”

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‘Mahmood’s own MPs calling her racist’ – Zia Yusuf

Speaking earlier on Sunday, Reform UK leader Nigel Farage said: “The home secretary sounds like a Reform supporter.”

“Sadly with the Human Rights Act and ECHR membership, the changes won’t survive the courts or probably even her own backbenchers,” he added.

The Refugee Council warned that the government would accrue a cost of £872m over 10 years as a result of the need to review asylum seekers’ status to remain in the UK.

Enver Solomon, the charity’s chief executive, insisted the changes “will not deter people from making dangerous crossings, but they will unfairly prevent men, women and children from integrating into British life”.

Latest Home Office figures show 39,075 people have arrived in the UK after crossing the English Channel in small boats so far this year.

The arrivals have already passed the number for the whole of 2024 (36,816) and 2023 (29,437), but the number is below the total for 2022 (45,774).

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Shabana Mahmood is the new hard woman of British politics – and potential successor to Starmer

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Shabana Mahmood is the new hard woman of British politics - and potential successor to Starmer

We’re told that Shabana Mahmood, the still new home secretary, is “a woman in a hurry”.

She’s been in the job for 73 days – and is now announcing “the most sweeping reforms to tackle illegal migration in modern times” – effectively since the Second World War.

Politics latest: Mahmood dismisses ‘tittle-tattle’ over leadership rumours

Her language is not just tough – it’s radical. Not what you’d have expected to hear from a Labour home secretary even just a few months ago.

“Illegal migration”, she believes, “is tearing our country apart. The crisis at our borders is out of control”.

Her team argues that those never-ending images of people crossing the Channel in small boats have led to a complete loss of faith in the government’s ability to take any action at all – let alone deliver on its promises.

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‘Illegal migration is creating division across our country’.

The political reality is that successive failures of Tory and Labour ministers have fuelled the inexorable rise of Reform.

More on Migrant Crisis

But speaking to Sir Trevor Phillips on Sky News, Ms Mahmood firmly hit back at suggestions today’s announcements are pandering to a racist narrative from the far right.

“It’s not right-wing talking points or fake news or misinformation that is suggesting that we’ve got a problem,” she said.

“I know, because I have now seen this system inside out. It is a broken system. We have a genuine problem to fix. People are angry about something that is real.

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Trevor’s takeaway

“It is my job, therefore, to think of a proper solution to this very real problem, to do so in line with my values as a Labour politician, but also as a British citizen, and to have solutions that work so that I can unite a divided country.”

There are many striking elements to this.

While she’s not been in the job for all that long, her government has been in power for 16 months. Her own press release highlights that over the past full calendar year asylum claims here have gone up by 18% – compared with a drop of 13% elsewhere in the EU.

The UK, she argues, has become a “golden ticket” for asylum seekers due to “far more generous terms” than other countries in Europe.

While she politely insists that her predecessor’s policies – the one in one out deal with France, closer partnership with law enforcement across Europe – are beginning to take effect, the message is clear. No one in office before Shabana has had the stomach to grasp the nettle.

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Inside Europe’s people smuggling industry

The Home Office is determined to present their boss as the new hard woman of British politics.

In a bleak warning to those in her party who will be deeply uncomfortable with this unflinching approach, we’re told she believes this is “the last chance for decent, moderate politics”.

“If these moderate forces fail, something darker will follow…. if you don’t like this, you won’t like what follows me.”

That’s a clear reference to the anti-asylum policies of Reform and the Conservatives, who are pledging to leave the European Convention on Human Rights and deport all illegal arrivals.

Both parties have responded by effectively claiming they don’t trust Labour to deliver on this, given they believe the government has lost control of our borders and overseen a surge in asylum claims.

That much Ms Mahmood herself has already acknowledged.

It’s unusual to hear a Conservative shadow minister like Chris Philp responding to a government announcement by claiming they will support the “sensible steps” the Home Office is making.

Unsurprisingly, he went on to belittle her ideas as “very small steps” combined with “gimmicks” – but the main thrust of his critique was that Labour lacks the authority to push these kinds of measures through parliament, given the likely opposition from their own left wingers.

It’s a fair point – but the lack of fundamental disagreement highlights the threat these plans pose to her opponents.

If the government looks like it might actually succeed in bringing down the numbers – and of course that’s a colossal if – Ms Mahmood will effectively have outflanked and neutralised much of the threat from both the Tories and Reform.

That’s why she’s so keen to mention her Danish inspiration – a centre-left government which managed to see off the threat from right-wing parties through its tough approach to migration, without having to leave the ECHR.

Read more:
Migrants shopping for life jackets: Inside the route to the Channel
Here’s how the Danish migration model works

The Home Office is planning further announcements on new safe and legal routes.

But refugee charities have described the new measures as harsh, claiming they will scapegoat genuine refugees, fail to integrate them into society, and fail to function as a deterrent either.

There will surely be an almighty internal row among Labour MPs about the principle of ripping up the post-war settlement for refugees.

For a government floundering after the political chaos of the last few weeks and months, Ms Mahmood is a voice of certainty and confidence.

At a moment of such intense backroom debate over the party’s future direction, it’s hard to avoid seeing her performance this weekend as a starting pitch for the leadership.

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Bitcoin briefly erases 2025 gains as crypto bleeds over weekend

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Bitcoin briefly erases 2025 gains as crypto bleeds over weekend

Bitcoin briefly lost all of its gains this year after the crypto markets bled over the weekend, despite the US government reopening on Thursday, which was expected to provide much-needed relief to the markets.

Bitcoin (BTC) fell to a low of $93,029 on Sunday, down 25% from its all-time high in October. It started the year at $93,507.

It has since rebounded to around $94,209, CoinGecko data shows.

Investments, US Government, Donald Trump, Bitcoin ETF
Bitcoin’s price information, including the change in price since Jan. 1, 2025. Source: CoinGecko

This year was tipped to be a strong one for the crypto markets after US President Donald Trump was inaugurated on Jan. 20 and formed the most pro-crypto administration to date, which has followed through on most of his promises.

Regulatory momentum under the Trump administration has been accompanied by an explosion in corporate Bitcoin treasury adoption and more inflows into the spot Bitcoin exchange-traded funds.