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Outrage = ChatGPT + racial slurs

In one of those storms in a teacup that’s impossible to imagine occurring before the invention of Twitter, social media users got very upset that ChatGPT refused to say racial slurs even after being given a very good, but entirely hypothetical and totally unrealistic, reason.

User TedFrank posed a hypothetical trolley problem scenario to ChatGPT (the free 3.5 model) in which it could save “one billion white people from a painful death” simply by saying a racial slur so quietly that no one could hear it.

It wouldn’t agree to do so, which X owner Elon Musk said was deeply concerning and a result of the “woke mind virus” being deeply ingrained into the AI. He retweeted the post stating: “This is a major problem.”

Another user tried out a similar hypothetical that would save all the children on Earth in exchange for a slur, but ChatGPT refused and said:

“I cannot condone the use of racial slurs as promoting such language goes against ethical principles.”

X
Musk said “Grok answers correctly.” (X)

As a side note, it turned out that users who instructed ChatGPT to be very brief and not give explanations found it would actually agree to say the slur. Otherwise, it gave long and verbose answers that attempted to dance around the question.

Trolls inventing ways to get AIs to say racist or offensive stuff has been a feature of chatbots ever since Twitter users taught Microsoft’s Tay bot to say all kinds of insane stuff in the first 24 hours after it was released, including that “Ricky Gervais learned totalitarianism from Adolf Hitler, the inventor of atheism.”

And the minute ChatGPT was released, users spent weeks devising clever schemes to jailbreak it so that it would act outside its guardrails as its evil alter ego DAN.

So it’s not surprising that OpenAI would strengthen ChatGPT’s guardrails to the point where it is almost impossible to get it to say racist stuff, no matter what the reason.

In any case, the more advanced GPT-4 is able to weigh the issues involved with the thorny hypothetical much better than 3.5 and states that saying a slur is the lesser of two evils compared with letting millions die. And X’s new Grok AI can too as Musk proudly posted (above right).

OpenAI’s Q* breaks encryption, says some guy on 4chan

Has OpenAI’s latest model broken encryption? Probably not, but that’s what a supposedly “leaked” letter from an insider claims — which was posted on anonymous troll forum 4chan. There have been rumors flying about ever since CEO Sam Altman was sacked and reinstated, that the kerfuffle was caused by OpenAI making a breakthrough in its Q*/Q STAR project.

The insider’s “leak” suggests the model can solve AES-192 and AES-256 encryption using a ciphertext attack. Breaking that level of encryption was thought to be impossible before quantum computers arrived, and if true, it would likely mean all encryption could be broken effectively handing over control of the web and probably crypto too, to OpenAI.

Leak
From QANON to Q STAR, 4chan is first with the news.

Blogger leapdragon claimed the breakthrough would mean “there is now effectively a team of superhumans over at OpenAI who can literally rule the world if they so choose.”

It seems unlikely however. While whoever wrote the letter has a good understanding of AI research, users pointed out that it cites Project Tunda as if it were some sort of shadowy super secret government program to break encryption rather than the undergrad student program it actually was.

Tundra, a collaboration between students and NSA mathematicians, did reportedly lead to a new approach called Tau Analysis, which the “leak” also cites. However, a Redditor familiar with the subject claimed in the Singularity forum that it would be impossible to use Tau analysis in a ciphertext-only attack on an AES standard “as a successful attack would require an arbitrarily large ciphertext message to discern any degree of signal from the noise. There is no fancy algorithm that can overcome that — it’s simply a physical limitation.”

Advanced cryptography is beyond AI Eye’s pay grade, so feel free to dive down the rabbit hole yourself, with an appropriately skeptical mindset.

The internet heads toward 99% fake

Long before a superintelligence poses an existential threat to humanity, we are all likely to have drowned in a flood of AI-generated bullsh*t.

Sports Illustrated came under fire this week for allegedly publishing AI-written articles written by fake AI-created authors. “The content is absolutely AI-generated,” a source told Futurism, “no matter how much they say it’s not.”

On cue, Sports Illustrated said it conducted an “initial investigation” and determined the content was not AI-generated. But it blamed a contractor anyway and deleted the fake author’s profiles.

Elsewhere Jake Ward, the founder of SEO marketing agency Content Growth, caused a stir on X by proudly claiming to have gamed Google’s algorithm using AI content.

His three-step process involved exporting a competitor’s sitemap, turning their URLs into article titles, and then using AI to generate 1,800 articles based on the headlines. He claims to have stolen 3.6 million views in total traffic over the past 18 months.

There are good reasons to be suspicious of his claims: Ward works in marketing, and the thread was clearly promoting his AI-article generation site Byword … which didn’t actually exist 18 months ago. Some users suggested Google has since flagged the page in question.

However, judging by the amount of low-quality AI-written spam starting to clog up search results, similar strategies are becoming more widespread. Newsguard has also identified 566 news sites alone that primarily carry AI written junk articles.

Some users are now muttering that the Dead Internet Theory may be coming true. That’s a conspiracy theory from a couple of years ago suggesting most of the internet is fake, written by bots and manipulated by algorithms.

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At the time, it was written off as the ravings of lunatics, but even Europol has since put out a report estimating that “as much as 90 percent of online content may be synthetically generated by 2026.”

Men are breaking up with their girlfriends with AI written messages. AI pop stars like Anna Indiana are churning out garbage songs.

And over on X, weird AI-reply guys increasingly turn up in threads to deliver what Bitcoiner Tuur Demeester describes as “overly wordy responses with a weird neutral quality.” Data scientist Jeremy Howard has noticed them too and both of them believe the bots are likely trying to build up credibility for the accounts so they can more effectively pull off some sort of hack, or astroturf some political issue in the future.

This seems like a reasonable hypothesis, especially following an analysis last month by cybersecurity outfit Internet 2.0 that found that almost 80% of the 861,000 accounts it surveyed were likely AI bots.

And there’s evidence the bots are undermining democracy. In the first two days of the Israel-Gaza war, social threat intelligence firm Cyabra detected 312,000 pro-Hamas posts from fake accounts that were seen by 531 million people.

It estimated bots created one in four pro-Hamas posts, and a 5th Column analysis later found that 85% of the replies were other bots trying to boost propaganda about how nicely Hamas treats its hostages and why the October 7 massacre was justified.

Cyabra
Cyabra detected 312,000 pro Hamas posts from fake accounts in 48 hours (Cyabra)

Grok analysis button

X will soon add a “Grok analysis button” for subscribers. While Grok isn’t as sophisticated as GPT-4, it does have access to real-time, up-to-the-moment data from X, enabling it to analyze trending topics and sentiment. It can also help users analyze and generate content, as well as code, and there’s a “Fun” mode to flip the switch to humor.

For crypto users, the real-time data means Grok will be able to do stuff like find the top ten trending tokens for the day or the past hour. However, DeFi Research blogger Ignas worries that some bots will snipe buys of trending tokens trades while other bots will likely astroturf support for tokens to get them trending.  

“X is already important for token discovery, and with Grok launching, the CT echo bubble can get worse,” he said.

Read also


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Crypto critics: Can FUD ever be useful?


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Is the Metaverse really turning out like ‘Snow Crash’?

All Killer No Filler AI News

— Ethereum co-founder Vitalik Buterin is worried that AI could take over from humans as the planet’s apex species, but optimistically believes using brain/computer interfaces could keep humans in the loop.

— Microsoft is upgrading its Copilot tool to run GPT-4 Turbo, which will improve performance and enable users to enter inputs up to 300 pages.

— Amazon has announced its own version of Copilot called Q.

— Bing has been telling users that Australia doesn’t exist due to a long-running Reddit gag and thinks the existence of birds is a matter for debate due to the joke Birds Aren’t Real campaign.

— Hedge fund Bridgewater will launch a fund next year that uses machine learning and AI to analyze and predict global economic events and invest client funds. To date, AI-driven funds have seen underwhelming returns. 

— A group of university researchers have taught an AI to browse Amazon’s website and buy stuff. The MM-Navigator was given a budget and told to buy a milk frother.

frother
Technology is now so advanced that AIs can buy milk frothers on Amazon. (freethink.com)

Stupid AI pics of the week

This week the social media trend has been to create an AI pic and then to instruct the AI to make it more so: So a bowl of ramen might get more spicy in subsequent pics, or a goose might get progressively sillier.

Andrew Fenton

Andrew Fenton

Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.

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Why Tether refuses to comply with MiCA

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Why Tether refuses to comply with MiCA

Why Tether refuses to comply with MiCA

Is Tether MiCA compliant?

The EU’s new Markets in Crypto-Assets regulation, better known as MiCA, is the first major attempt by a global economic power to create clear, region-wide rules for the crypto space, and stablecoins are a big focus.

MiCA mandates best practices. If a stablecoin is going to be traded in the EU, its issuer has to follow some stringent rules:

1. You need a license

To issue a stablecoin in Europe, you must become a fully authorized electronic money institution (EMI). That’s the same kind of license traditional fintechs need to offer e-wallets or prepaid cards. It’s not cheap and it’s not quick. 

2. Most of your reserves have to sit in European banks

This is one of the most controversial parts of MiCA. If you issue a “significant” stablecoin — and Tether’s USDT certainly qualifies — at least 60% of your reserves must be held in EU-based banks. The logic is to keep the financial system safe. 

3. Full transparency is non-negotiable

MiCA requires detailed, regular disclosures. Issuers have to publish a white paper and provide updates on their reserves, audits and operational changes. This level of reporting is new territory for some stablecoins, especially those that have historically avoided public scrutiny.

4. Non-compliant coins are getting delisted

If a token doesn’t comply, it won’t be tradable on regulated EU platforms. Binance, for example, has delisted USDT trading pairs for users in the European Economic Area (EEA). Other exchanges are following suit.

The European Securities and Markets Authority (ESMA) clarified that people in Europe can still hold or transfer USDT, but it can’t be offered to the public or listed on official venues. 

In other words, you might still have USDT in your wallet, but good luck trying to swap it on a regulated platform.

Key reasons why Tether rejects MiCA regulations

Tether is unique in that it has explained why it wants nothing to do with MiCA regulations. The company’s leadership, especially CEO Paolo Ardoino, has been pretty vocal about what they see as serious flaws in the regulation, from financial risks to privacy concerns to the bigger picture of who stablecoins are really for.

1. The banking rule could backfire

One of MiCA’s most talked-about rules says that “significant” stablecoins — like Tether’s USDt (USDT) — must keep at least 60% of their reserves in European banks. The idea is to make stablecoins safer and more transparent. But Ardoino sees it differently.

How Ardoino sees Tether (USDT) differently

He’s warned that this could create new problems, forcing stablecoin issuers to rely so heavily on traditional banks could make the whole system more fragile. 

After all, if there’s a wave of redemptions and those banks don’t have enough liquidity to keep up, we’d witness a struggling bank and a stablecoin crisis simultaneously.

Instead, Tether prefers to keep most of its reserves in US Treasurys, assets it says are liquid, low-risk and much easier to redeem quickly if needed.

2. They don’t trust the digital euro

Tether also has a broader issue with the direction Europe is heading, especially regarding a digital euro. Ardoino has openly criticized it, raising alarms about privacy. 

He has argued that a centrally controlled digital currency could be used to track how people spend their money, and even control or restrict transactions if someone falls out of favor with the system.

Privacy advocates have echoed similar concerns. While the European Central Bank insists that privacy is a top priority (with features like offline payments), Tether isn’t convinced. In their eyes, putting that much financial power in the hands of one institution is asking for trouble.

3. Tether’s users aren’t in Brussels. They’re in Brazil, Turkey and Nigeria

At the heart of it, Tether sees itself as a lifeline for people in countries dealing with inflation, unstable banking systems and limited access to dollars. 

These are places like Turkey, Argentina and Nigeria, where USDT is often more useful than the local currency.

MiCA, with all its licensing hoops and reserve mandates, would require Tether to shift focus and invest heavily in meeting EU-specific standards. That’s something the company says it’s not willing to do, not at the expense of the markets it sees as most in need of financial tools like USDT.

Did you know? Turkey ranks among the top countries for cryptocurrency adoption, with 16% of its population engaged in crypto activities. This high adoption rate is largely driven by the devaluation of the Turkish lira and economic instability, prompting citizens to seek alternatives like stablecoins to preserve their purchasing power.

What happens when Tether doesn’t comply with MiCA

Tether’s decision to skip MiCA didn’t exactly fly under the radar. It’s already having real consequences, especially for exchanges and users in Europe.

Exchanges are dropping USDT

Big names like Binance and Kraken didn’t wait around. To stay on the right side of EU regulators, they’ve already delisted USDT trading pairs for users in the European Economic Area. Binance had removed them by the end of March 2025. Kraken followed close behind, removing not just USDT but also other non-compliant stablecoins like EURT and PayPal’s PYUSD.

Users are left with fewer options

If you’re in Europe and holding USDT, you’re not totally out of luck; you can still withdraw or swap it on certain platforms. But you won’t be trading it on major exchanges anymore. That’s already pushing users toward alternatives like USDC and EURC, which are fully MiCA-compliant and widely supported.

Even major crypto payment processors are pulling support, leaving users with fewer options for spending their crypto directly.

A hit to liquidity? Probably.

Pulling USDT from European exchanges could make the markets a bit shakier. Less liquidity, wider spreads and more volatility during big price moves are all on the table. Some traders will adjust quickly. Others? Not so much.

Did you know? Tether (USDT) is the most traded cryptocurrency globally, surpassing even Bitcoin in daily volume. In 2024, it facilitated over $20.6 trillion in transactions and boasts a user base exceeding 400 million worldwide.

Tether vs MiCA regulation

Tether may be out of sync with the EU, but it’s far from retreating. If anything, the company is doubling down elsewhere, looking for friendlier ground and broader horizons.

Firstly, Tether’s picked El Salvador as its new base, a country that has fully embraced crypto. After getting a digital asset service provider license, the company is setting up a real headquarters there. Ardoino and other top execs are making the move too.

Moreover, after banking over $5 billion in profits in early 2024, Tether is putting its capital to work:

  • AI: Through its venture arm, Tether Evo, the company has picked up stakes in firms like Northern Data Group and Blackrock Neurotech. Tether has also launched Tether AI, an open-source, decentralized AI platform designed to operate on any device without centralized servers or API keys. The goal is to use AI to boost operations and maybe build some new tools along the way.
  • Infrastructure and AgTech: Tether invested in Adecoagro, a company focused on sustainable farming and renewable energy. It’s a surprising move, but it fits Tether’s bigger strategy of backing real-world, resilient systems.
  • Media and beyond: There are also signs Tether wants a footprint in content and communications, signaling it’s thinking far beyond crypto alone.

Tether’s MiCA exit highlights crypto’s global regulatory chaos

Tether walking away from MiCA is a snapshot of a much bigger issue in crypto: How hard it is to build a business in a world where every jurisdiction plays by its own rulebook.

The classic game of regulatory arbitrage

This isn’t Tether’s first rodeo when it comes to navigating regulations. Like many crypto companies, they’ve mastered the art of regulatory arbitrage, finding the friendliest jurisdiction and setting up shop there. 

Europe brings in strict rules? Fine, Tether sets up in El Salvador, where crypto is welcomed with open arms.

However, it does raise questions. If big players can simply move jurisdictions to dodge regulations, how effective are those rules in the first place? And does that leave retail users protected or just further confused?

A crypto world that’s all over the map

The bigger issue is that the global regulatory landscape is incredibly fragmented. Europe wants full compliance, transparency and reserve mandates. The US is still sending mixed signals. Asia is split; Hong Kong is pro-crypto, while China stays cold

Hong Kong has also passed the Stablecoin Bill to license fiat-backed issuers and boost its Web3 ambitions. Meanwhile, Latin America is embracing crypto as a tool for financial access.

For companies, it’s a mess. You can’t build for one global market; you must constantly adapt, restructure or pull out entirely. For users, it creates massive gaps in access. A coin available in one country might be inaccessible in another just because of local policy.

As a final thought: Tether’s resistance to MiCA seems to be more than just a protest against red tape. 

It’s making a bet that crypto’s future will be shaped outside Brussels, not inside it.

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Labour say there’s been a ‘massive increase’ in NHS appointments – this begs to differ

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Labour say there's been a 'massive increase' in NHS appointments - this begs to differ

“The target was never particularly ambitious,” says the Institute for Fiscal Studies (IFS) about Labour’s plan to add two million extra NHS appointments during their first year in power.

In February, Health Secretary Wes Streeting announced they had achieved the feat early. He recently described the now 3.6m additional appointments achieved in their first eight months as a “massive increase”.

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But new data, obtained by independent fact checking charity Full Fact and shared exclusively with Sky News, reveals this figure actually signalled a slowing down in new NHS activity.

There was an even larger rise of 4.2m extra appointments over the same period the year before, under Rishi Sunak’s government.

The data also reveals how unambitious the target was in the first place.

We now know two million extra appointments over the course of a year represents a rise of less than 3% of the almost 70 million carried out in the year to June 2024.

In the last year under Mr Sunak, the rise was 10% – and the year before that it was 8%.

Responding to the findings, Sarah Scobie, deputy director of independent health and social care think tank the Nuffield Trust, told Sky News the two million target was “very modest”.

She said delivering that number of appointments “won’t come close to bringing the treatment waiting list back to pre-pandemic levels, or to meeting longer-term NHS targets”.

The IFS said it was smaller than the annual growth in demand pressures forecast by the government.

What exactly did Labour promise?

The Labour election manifesto said: “As a first step, in England we will deliver an extra two million NHS operations, scans, and appointments every year; that is 40,000 more appointments every week.”

We asked the government many times exactly how it would measure the pledge, as did policy experts from places like the IFS and Full Fact. But it repeatedly failed to explain how it was defined.

Leo Benedictus, a journalist and fact-checker at Full Fact, told Sky News: “We didn’t know how they were defining these appointments.

“When they said that there would be more of them, we didn’t know what there would be more of.”

Leo Benedictus, journalist and fact checker at Full Fact, obtained the key data from the NHS after a Freedom of Information request
Image:
Leo Benedictus

Even once in government, initially Labour did not specify their definition of “operations, scans, and appointments”, or what the baseline “extra” was being measured against.

This prevented us and others from measuring progress every month when NHS stats were published. Did it include, for instance, mental health and A&E appointments? And when is the two million extra comparison dating from?

Target met, promise kept?

Suddenly, in February, the government announced the target had already been met – and ever since, progress on appointments has been a key boast of ministers and Labour MPs.

At this point, they did release some information: the definition of procedures that allowed them to claim what had been achieved. They said the target involved is elective – non-emergency – operations excluding maternity and mental health services; outpatient appointments and diagnostic tests.

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Why has Starmer axed NHS England?

However, we still did not have a comprehensive baseline to measure the two million increase against.

The government data instead relied on a snapshot: comparing the number of appointments carried out from July to November 2024 with the number from July to November 2023, and adjusted them for the number of working days in each period.

This did not tell us if the NHS had already been adding appointments under the Conservatives, and at what pace, and therefore whether this target was a big impressive ramping up of activity or, as it turns out, actually a slowing down.

Since then, a number of organisations, like Full Fact, have been fighting with the government to release the data.

Mr Benedictus said: “We asked them for that information. They didn’t publish it. We didn’t have it.

“The only way we could get hold of it was by submitting an FOI request, which they had to answer. And when that came back about a month later, it was fascinating.”

This finally gives us the comparative data allowing us to see what the baseline is against which the government’s “success” is being measured.

Full Fact passed the data to Sky News because it had seen our reporting about how the information published by the NHS in February was not sufficient to be able to assess whether things were getting better or worse.

What the government says now

We put our findings to the government.

A Department of Health and Social Care spokesperson said: “On entering office last July, the secretary of state [Wes Streeting] was advised that the fiscal black hole meant elective appointments would have to be cut by 20,000 every week.

“Instead, this government provided the extra investment and has already delivered 3.6 million additional appointments – more than the manifesto commitment the British public voted for – while also getting more patients seen within 18 weeks.

“In the nine months since this government took office, the waiting list has dropped by over 200,000 – more than five times as much as it had over the same period the previous year – and also fell for six consecutive months in a row.”

Health Secretary Wes Streeting leaves 10 Downing Street, London, following a Cabinet meeting. Picture date: Tuesday May 6, 2025. PA Photo. Photo credit should read: Aaron Chown/PA Wire
Image:
Health Secretary Wes Streeting. Pic: PA

We put this to Jeremy Hunt, Rishi Sunak’s chancellor during his last two years as prime minister, and health secretary for six years under David Cameron and Theresa May.

He said: “What these numbers seem to show is that the rate of appointments was going up by more in the last government than it is by this government. That’s really disappointing when you look at the crisis in the NHS.

“All the evidence is that if you want to increase the number of people being treated, you need more capacity in the system, and you need the doctors and nurses that are there to be working more productively.

“Instead what we’ve had from this government is the vast majority of the extra funding for the NHS has gone into pay rises, without asking for productivity in return.”

Jeremy Hunt told Sky News that "the vast majority of the extra funding for the NHS has gone into pay-rises, without asking for productivity in return"
Image:
Jeremy Hunt speaks to Sky’s Sam Coates

Edward Argar, shadow health secretary, accused the government of a “weak attempt […] to claim credit for something that was already happening”.

“We need to see real and meaningful reform that will genuinely move the dial for patients,” he added.

Is the NHS getting better or worse?

New polling carried out by YouGov on behalf of Sky News this week also reveals 39% of people think the NHS has got worse over the past year, compared with 12% who think it’s got better.

Six in 10 people say they do not trust Keir Starmer personally on the issue of the NHS, compared with three in 10 who say they do.

That is a better rating than some of his rivals, however. Just 21% of people say they trust Nigel Farage with the NHS, and only 16% trust Kemi Badenoch – compared with 64% and 60% who do not.

Ed Davey performs better, with 30% saying they trust him and 38% saying they do not.

Ms Scobie of the Nuffield Trust told Sky News “the government is right to make reducing long hospital treatment waits a key priority […] but much faster growth in activity is needed for the NHS to see a substantial improvement in waiting times for patients.”

The government is correct, however, to point out the waiting list having dropped by more than 200,000 since it’s been in office. This is the biggest decline between one July and the following February since current waiting list statistics were first published under Gordon Brown.

The percentage of people waiting less than 18 weeks for treatment is also falling for the first time, other than a brief period during the pandemic, for the first time in more than a decade.

There is still a long way to go, though. Figures released last week showed the total number of people waiting for NHS treatment in England had risen again in March, following six months of positive progress.

The latest figures show 6.25m people waiting for 7.42m treatments (some people are on the list for more than one issue). That means more than one in 10 people in England are currently waiting for NHS treatment.

There continues to be a fall in the number who have been waiting longer than a year. It’s now 180,242, down from almost 400,000 in August 2023 and over 300,000 in June 2024, the Conservatives’ last month in power.

But that number is still incredibly high by historical standards. It remains over 100 times higher than it was before the pandemic.

The government has a separate pledge that no more than 8% of patients will wait longer than 18 weeks for treatment, by the time of the next election. Despite improvements in recent months, currently more than 40% wait longer than this.


The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

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Starmer’s winter fuel cut U-turn claim ‘not credible’

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Starmer's winter fuel cut U-turn claim 'not credible'

Sir Keir Starmer’s claim he is U-turning on cutting winter fuel payments for pensioners because he now has the money is not “credible”, Harriet Harman has said.

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The Labour peer, speaking to Sky News political editor Beth Rigby on the Electoral Dysfunction podcast, said the prime minister made the move as it was so unpopular with voters.

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She also said Labour’s poor results at the local elections and the Runcorn and Helsby by-election were the “straw that broke the camel’s back”.

Sir Keir said on Wednesday he would ease the cut to the winter fuel payment, which has been removed from more than 10 million pensioners this winter after it became means-tested.

He and his ministers had insisted they would stick to their guns on the policy, even just hours before Sir Keir revealed his change of heart at PMQs

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Winter fuel payment cuts to be reversed

Baroness Harman said: “It’s always been contested and always been unpopular.

“But the final straw that broke the camel’s back was the elections. The council elections and the Runcorn by-election, where the voters were saying, ‘this is not the change we voted for’.

“At the end of the day, you cannot just keep flying in the face of what voters – particularly if they’re people who previously voted for you – wanted.”

Baroness Harman is unconvinced by Sir Keir’s claim he can U-turn because there is more money due to good economic management by the government.

“I don’t think that’s credible as an argument,” she said.

“It really is the fact that voters just said ‘this is not the change we voted for, we’re not going to have this’.”

The challenge for the government now, she said, is deciding who will get the allowance moving forward, when they’ll get it, and when it will all be announced.

Read more:
Ex-PM suggests who should miss out on winter fuel payments

What are the options for winter fuel payments?

  • The Institute for Fiscal Studies has looked into the government’s options after Sir Keir Starmer said he is considering changes to the cut to winter fuel payment (WFP).
  • The government could make a complete U-turn on removing the payment from pensioners not claiming pension credit so they all receive it again.
  • There could be a higher eligibility threshold. Households not claiming pension credit could apply directly for the winter fuel payment, reporting their income and other circumstances.
  • Or, all pensioner households could claim it but those above a certain income level could do a self-assessment tax return to pay some of it back as a higher income tax charge. This could be like child benefit, where the repayment is based on the higher income member of the household.
  • Instead of reducing pension credit by £1 for every £1 of income, it could be withdrawn more slowly to entitle more households to it, and therefore WFP.
  • At the moment, WFP is paid to households but if it was paid to individuals the government could means-test each pensioner, rather than their household. This could be based on an individual’s income, which the government already records for tax purposes. Individuals who have a low income could get the payment, even if their spouse is high income. This would mean low income couples getting twice as much, whereas each eligible house currently gets the same.
  • Instead of just those receiving pension credit getting WFP, the government could extend it to pensioners who claim means-tested welfare for housing or council tax support. A total of 430,000 renting households would be eligible at a cost of about £100m a year.
  • Pensioners not on pension credit but receiving disability credits could get WFP, extending eligibility to 1.8m households in England and Scotland at a cost of about £500m a year.
  • Pensioners living in a band A-C property could be automatically entitled to WFP, affected just over half (6.3m).

Chancellor Rachel Reeves has committed to just one major fiscal event a year, meaning just one annual budget in the autumn.

Autumn budgets normally take place in October, with the last one at the end of the month.

If this year’s budget is around the same date, it will leave little time for the extra winter fuel payments to be made, as they are paid between November and December.

Business Secretary Jonathan Reynolds told the Electoral Dysfunction podcast the economy will have to be “strong enough” for the government to U-turn on winter fuel payment cuts.

He also said the public would have to wait for the budget for any announcement.

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