The government has “no choice” but to cut winter fuel payments for the majority of pensioners, a minister has said ahead of MPs voting on the controversial plan.
The move – which will see around 10 million people lose the payment of up to £300 to help with energy costs – has been defended by Labour, who said “tough decisions” need to be made in light of the £22bn “black hole” in public finances.
Business secretary Jonathan Reynolds told Sky News: “We have no choice… We’re fixing the foundations [of the economy], and that’s a difficult message today.
“But it’s not just to correct the problem, it’s to make sure your house is better in future and the better future we want, more prosperity for everyone, comes through stability and responsibility.”
However, some MPs from Labour’s own side, as well as charities and opposition MPs, are calling for a U-turn, saying the policy will leave less well-off pensioners with “a heart-breaking choice between heating and eating this winter”.
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Ahead of the vote, Prime Minister Sir Keir Starmer will deliver a speech to the Trades Union Congress (TUC) conference in Brighton, where many in the audience will be in vocal opposition to the policy.
He will attack the previous Conservative government for having “salted the earth of Britain’s future to serve themselves”, but appeal for partnership with the unions to fix it, telling them: “The crisis we have inherited means we must go deep into the marrow of our institutions, rewrite the rules of our economy and fix the foundations so we can build a new home.”
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Sir Keir will add: “Economic rules written in the ink of partnership will be more durable and long-lasting – whoever is in power. So it is time to turn the page, business and unions, the private and public sector, united by a common cause to rebuild our public services and grow our economy in a new way.
“We will keep to the course of change, reject the snake oil of easy answers, fix the foundations of our economy and build a new Britain. More secure, more prosperous, more dynamic, and fairer. A country renewed and returned, calmly but with confidence, to the service of working people.”
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Image: Sir Keir Starmer has stood by the decision to cut the winter fuel allowance. Pic: PA
The winter fuel payment was introduced in 1997 by then Labour chancellor Gordon Brown as a universal benefit, with all people above state pension age entitled to it.
However, the current Labour chancellor, Rachel Reeves, now wants the payment to be limited to those entitled to Pension Credit – around 1.5 million people – to save public money.
Making the announcement in July shortly after her party won the general election, Ms Reeves laid the blame at the door of the previous Conservative government, claiming they had made “commitment after commitment without knowing where the money was going to come from”.
While she said the decision to scrap the benefit was “difficult”, it was “necessary and urgent” to fix the money problems that had been left behind.
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2:57
Chancellor: Labour inherited £22bn black hole
The prime minister has continued to stand by the move, insisting additional “safeguards” are in place for pensioners already on benefits.
He added: “I am determined that we will take tough decisions because the change which is improved living standards, people feeling better off, better public services, dealing with crime and immigration and issues like that, that change will only happen if we fix the foundations now.”
Further potentially unpopular measures, including possible tax rises, are expected next month when Ms Reeves delivers her first Budget.
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PM: Budget will be ‘painful’
But Sky News understands as many as 30 MPs are unhappy with the winter fuel payment cut, though they are likely to abstain on the vote rather than go against the party – especially in light of Labour suspending seven of its MPs in July for six months after they rebelled over keeping the two-child benefit cap.
The general secretary of one of Labour’s major union backers, Unite, also accused the party of “picking the pockets of pensioners”.
Speaking to Sky News from the TUC conference, Sharon Graham said the country was “in crisis” and the new government needed to “make very, very different choices” – including introducing a wealth tax “on the biggest and richest 1% in society”.
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Government ‘picking the pockets of pensioners’
The Conservatives are among the opposition parties putting forward their own motions to try and stop the cut – though with Labour’s large majority, the government is likely to win the vote.
Former prime minister and Tory leader Rishi Sunak reiterated his accusation that Sir Keir was choosing to “cut vital support for pensioners to fund an inflation-busting pay rise for train drivers”, calling it “unnecessary and wrong”.
He added: “The last Conservative government always made sure to protect our vulnerable pensioners, because we believe that those who have worked hard all their lives deserve security and peace of mind in retirement.
“But within weeks of coming into power Labour are cutting the winter fuel payments, with potentially devastating consequences.
“Labour MPs know this is indefensible – they must do the right thing and force the government to come clean about the impact this punishing cut will have.”
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PMQS: Pair clash over winter fuel cuts
Also speaking ahead of the vote, Liberal Democrat leader Sir Ed Davey said the government “should do the right thing and change course” as cutting the winter fuel payment would “put untold stress on pensioners, with many facing a heart-breaking choice between heating and eating this winter”.
Confirming his party would vote against the cut, he added: “While we understand the dire state the Conservatives left the public finances in, now is not the time to be cutting support to some of the most vulnerable people in our society.
“We cannot stand by and allow millions of pensioners to endure another winter in a cost of living crisis.”
The SNP’s Westminster leader, Stephen Flynn, also urged Scottish MPs on the Labour benches to follow his party’s lead and vote down the change in policy, saying: “The last UK government hammered the economy, public services and household incomes by imposing 14 years of cuts and Brexit.
“The last thing the UK needs now is more cuts from the Labour Party – and pensioners will face a bitter winter if these cuts go ahead.”
Former US Securities and Exchange Commission Chair Gary Gensler renewed his warning to investors about the risks of cryptocurrencies, calling most of the market “highly speculative” in a new Bloomberg interview on Tuesday.
He carved out Bitcoin (BTC) as comparatively closer to a commodity while stressing that most tokens don’t offer “a dividend” or “usual returns.”
Gensler framed the current market backdrop as a reckoning consistent with warnings he made while in office that the global public’s fascination with cryptocurrencies doesn’t equate to fundamentals.
“All the thousands of other tokens, not the stablecoins that are backed by US dollars, but all the thousands of other tokens, you have to ask yourself, what are the fundamentals? What’s underlying it… The investing public just needs to be aware of those risks,” he said.
Gensler’s record and industry backlash
Gensler led the SEC from April 17, 2021, to Jan. 20, 2025, overseeing an aggressive enforcement agenda that included lawsuits against major crypto intermediaries and the view that many tokens are unregistered securities.
The industry winced at high‑profile actions against exchanges and staking programs, as well as the posture that most token issuers fell afoul of registration rules.
Gary Gensler labels crypto as “highly speculative.” Source: Bloomberg
Under Gensler’s tenure, Coinbase was sued by the SEC for operating as an unregistered exchange, broker and clearing agency, and for offering an unregistered staking-as-a-service program. Kraken was also forced to shut its US staking program and pay a $30 million penalty.
The politicization of crypto
Pushed on the politicization of crypto, including references to the Trump family’s crypto involvement by the Bloomberg interviewer, the former chair rejected the framing.
“No, I don’t think so,” he said, arguing it’s more about capital markets fairness and “commonsense rules of the road,” than a “Democrat versus Republican thing.”
He added: “When you buy and sell a stock or a bond, you want to get various information,” and “the same treatment as the big investors.” That’s the fairness underpinning US capital markets.
On ETFs, Gensler said finance “ever since antiquity… goes toward centralization,” so it’s unsurprising that an ecosystem born decentralized has become “more integrated and more centralized.”
He noted that investors can already express themselves in gold and silver through exchange‑traded funds, and that during his tenure, the first US Bitcoin futures ETFs were approved, tying parts of crypto’s plumbing more closely to traditional markets.
Gensler’s latest comments draw a familiar line: Bitcoin sits in a different bucket, while most other tokens remain, in his view, speculative and light on fundamentals.
Even out of office, his framing will echo through courts, compliance desks and allocation committees weighing BTC’s status against persistent regulatory caution of altcoins.
New figures reveal a 70% year-on-year increase in Cayman Islands foundation company registrations, with more than 1,300 on the books at the end of 2024, and over 400 new registrations already in 2025.
According to a news release from Cayman Finance, many of the world’s largest Web3 projects are now registered in the Cayman Islands, including at least 17 foundation companies with treasuries over $100 million.
Why DAOs are choosing Cayman
The Cayman foundation company has emerged as a preferred tool for DAOs that need to sign contracts, hire contributors, hold IP and interact with regulators, all while shielding tokenholders from personal liability for the DAO’s obligations.
The legal wake‑up call for many communities came in 2024 with Samuels v. Lido DAO, in which a US federal judge found that an unwrapped DAO could be treated as a general partnership under California law, exposing participants to personal liability.
The Cayman foundation company is designed to plug that gap, offering a separate legal personality and the ability to own assets and sign agreements, while giving tokenholders assurance that they are not partners by default.
Rise in Cayman Islands foundation company registrations | Source: Cayman Finance
Add tax neutrality, a legal framework familiar to institutional allocators and an ecosystem of companies that specialize in Web3 treasuries, and it becomes clear why more projects have quietly redomiciled their foundations to Grand Cayman.
Elsewhere, policymakers have made big promises but delivered patchwork. US President Donald Trump has repeatedly pledged to turn the United States into the “crypto capital of the planet,” but at the entity level, only a handful of states explicitly recognize DAOs as legal persons.
Switzerland remains the archetypal onshore Web3 foundation center, with the Crypto Valley region now hosting over 1,700 active blockchain firms, up more than 130% since 2020, with foundations and associations representing a growing share of new structures.
The surge in Web3 foundations coincides with a shift in Cayman’s own regulatory posture — the arrival of the Organisation for Economic Co-operation and Development’s Crypto‑Asset Reporting Framework (CARF), which the Cayman Islands has now implemented via new Tax Information Authority regulations that take effect from Jan. 1, 2026.
CARF will impose due diligence and reporting duties on Cayman “Reporting Crypto‑Asset Service Providers” (entities that exchange crypto for fiat or other crypto, operate trading platforms or provide custodial services), requiring them to collect tax‑residence data from users, track relevant transactions and file annual reports with the Tax Information Authority.
Legal professionals note that CARF reporting under the current interpretation applies to relevant crypto-asset service providers, including exchanges, brokers and dealers, which likely leaves structures that merely hold crypto assets, such as protocol treasuries, investment funds, or passive foundations, off the hook.
“The key question is whether your entity, as a business, provides a service effectuating exchange transactions for or on behalf of customers, including by acting as a counterparty or intermediary or by making available a trading platform.”
In practice, that means many pure treasury or ecosystem‑steward foundations should be able to continue benefitting from Cayman’s legal certainty and tax neutrality without being dragged into full reporting status, so long as they are not in the business of running exchange, brokerage or custody services.
Chancellor Rachel Reeves has suffered another budget blow with a rebellion by rural Labour MPs over inheritance tax on farmers.
Speaking during the final day of the Commons debate on the budget, Labour backbenchers demanded a U-turn on the controversial proposals.
Plans to introduce a 20% tax on farm estates worth more than £1m from April have drawn protesters to London in their tens of thousands, with many fearing huge tax bills that would force small farms to sell up for good.
Image: Farmers have staged numerous protests against the tax in Westminster. Pic: PA
MPs voted on the so-called “family farms tax” just after 8pm on Tuesday, with dozens of Labour MPs appearing to have abstained, and one backbencher – borders MP Markus Campbell-Savours – voting against, alongside Conservative members.
In the vote, the fifth out of seven at the end of the budget debate, Labour’s vote slumped from 371 in the first vote on tax changes, down by 44 votes to 327.
‘Time to stand up for farmers’
The mini-mutiny followed a plea to Labour MPs from the National Farmers Union to abstain.
“To Labour MPs: We ask you to abstain on Budget Resolution 50,” the NFU urged.
“With your help, we can show the government there is still time to get it right on the family farm tax. A policy with such cruel human costs demands change. Now is the time to stand up for the farmers you represent.”
After the vote, NFU president Tom Bradshaw said: “The MPs who have shown their support are the rural representatives of the Labour Party. They represent the working people of the countryside and have spoken up on behalf of their constituents.
“It is vital that the chancellor and prime minister listen to the clear message they have delivered this evening. The next step in the fight against the family farm tax is removing the impact of this unjust and unfair policy on the most vulnerable members of our community.”
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1:54
Farmers defy police ban in budget day protest in Westminster.
The government comfortably won the vote by 327-182, a majority of 145. But the mini-mutiny served notice to the chancellor and Sir Keir Starmer that newly elected Labour MPs from the shires are prepared to rebel.
Speaking in the debate earlier, Mr Campbell-Savours said: “There remain deep concerns about the proposed changes to agricultural property relief (APR).
“Changes which leave many, not least elderly farmers, yet to make arrangements to transfer assets, devastated at the impact on their family farms.”
Samantha Niblett, Labour MP for South Derbyshire abstained after telling MPs: “I do plead with the government to look again at APR inheritance tax.
“Most farmers are not wealthy land barons, they live hand to mouth on tiny, sometimes non-existent profit margins. Many were explicitly advised not to hand over their farm to children, (but) now face enormous, unexpected tax bills.
“We must acknowledge a difficult truth: we have lost the trust of our farmers, and they deserve our utmost respect, our honesty and our unwavering support.”
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2:54
UK ‘criminally’ unprepared to feed itself in crisis, says farmers’ union.
Labour MPs from rural constituencies who did not vote included Tonia Antoniazzi (Gower), Julia Buckley (Shrewsbury), Jonathan Davies (Mid Derbyshire), Maya Ellis (Ribble Valley), and Anna Gelderd (South East Cornwall), Ben Goldsborough (South Norfolk), Alison Hume (Scarborough and Whitby), Terry Jermy (South West Norfolk), Jayne Kirkham (Truro and Falmouth), Noah Law (St Austell and Newquay), Perran Moon, (Camborne and Redruth), Samantha Niblett (South Derbyshire), Jenny Riddell-Carpenter (Suffolk Coastal), Henry Tufnell (Mid and South Pembrokeshire), John Whitby (Derbyshire Dales) and Steve Witherden (Montgomeryshire and Glyndwr).