Connect with us

Published

on

Rishi Sunak is considering removing the winter fuel allowance from all but the poorest pensioners as a way of clawing back some taxpayer funds from the elderly as he prepares to fight the next election on a pledge to keep the pension triple lock despite its spiralling costs.

Government figures 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.

Politics Live: Labour in campaigning mode ahead of by-elections

But the prime minister is also trying to find ways to offset the cost of the commitment with officials drawing up proposals to remove the annual winter fuel allowance from all pensioners except those who receive pension credit.

“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.

Another person familiar with discussions told Sky News that if the government decides 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 8.4m 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.

A government spokesperson 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.

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.

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 Rishi 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.

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.”

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.”

Continue Reading

UK

My week with Prince William, the quiet disruptor

Published

on

By

My week with Prince William, the quiet disruptor

Photographed in a beam of sunlight, Prince William walked through Westminster Abbey with the King behind him.

The ornate robes of the Order of the Bath service, two weeks ago, felt like a world away from the more modern image he wants to portray.

But as a man bestowed with so many traditional titles, it’s a new role he’s shaping for himself that is more intriguing – William, the quiet disruptor.

The Prince of Wales at the Order of the Bath Service at Westminster Abbey, in the Order’s 300th anniversary year. Pic: Andrew Parsons / Kensington Palace
Image:
The Prince of Wales at the Order of the Bath Service at Westminster Abbey. Pic: Andrew Parsons / Kensington Palace

In a week when Time Magazine named the Prince and Princess of Wales in its top 100 philanthropists list for “modernising royal philanthropy”, I spent the week following the prince on various engagements.

None of them particularly headline-grabbing, but all examples of how he’s setting out to do things differently, or underlining the challenges, and potential criticisms, he faces doing things his own way.

Take Tuesday, for example.

We weren’t expecting him to turn up as we waited at the Soho Hotel in London to watch a new series of films about the dangers faced by wildlife rangers, a project described as “the brainchild” of Prince William.

But all of a sudden, there he was in the room, taking the mic to explain what it really means to him.

Speaking about his drive to “give a voice to the voiceless”, it was indicative of what feels like a greater desire from him to articulate more publicly what he stands for.

Since November, when he described how he wanted to carry out his duties with “a smaller r in the royal”, you’ve got the sense William, and his team, have further wanted to cement in our minds where he sees his role.

From conversations this week, with those who work closely with him, the word “convening” came up time and again; the prince doesn’t want to waste what he knows is a unique position, to bring people together, start conversations and support those who are already doing amazing things in their communities.

Prince William recording the opening scenes for a documentary focusing on rangers and the dangers they face.
Pic: PA
Image:
Prince William recording the opening scenes for a documentary about rangers and the dangers they face.
Pic: PA

Shifting the dial

But this isn’t just about him personally.

This is now a man whose vision for the monarchy, I’m told, is increasingly driven by a desire to “shift the dial on global leadership” where others may be failing.

With palace sources telling me he’d be more than happy to “be acknowledged” as a quiet disruptor, despite the criticism his new ways of working might bring.

Those who’ve known him a long time will tell you this compulsion to do things differently has been there for some time.

Prince William during a recent royal visit.
Pic: PA
Image:
Prince William during a recent royal visit.
Pic: PA

Dr Tessy Ojo, the chief executive from The Diana Award, has worked with Prince William and Prince Harry for over 20 years.

She said: “They would never do royal engagements from the sense of cutting the ribbon or simply being poster people. We were very clearly warned if you wanted any form of engagement, it almost had to have a whole strategy behind it.”

She told me she has always sensed how much William appreciates the responsibility that comes with his role, especially in a world where “there’s a massive demand on leadership… there’s a lot of distrust on leaders”.

“What people wanted 40 years ago from their monarch is completely different,” she said.

“I think it’s super important that as the heir, as the next monarch, he’s very in tune with what the people want, and what people expect. And being able to be that 21st century monarch, who is a present dad, but also a leader who understands how to use your leadership for social good”.

A modern royal

Wednesday, and William walked into a sweaty, but infectiously positive, community hall in Leith in Edinburgh.

No ribbon cutting here, but this is the kind of visit the prince now sees as a big deal, “impact” the buzz word ahead of any engagement now.

A very lively game of football launching what they hope will be a long-term tie-up between the Royal Foundation (their charitable trust), Leith community centre and Street Soccer Scotland.

The Prince of Wales playing football during the visit to Leith.
Pic: PA
Image:
The Prince of Wales playing football during the visit to Leith.
Pic: PA

The Prince of Wales,  known as the Duke of Rothesay when in Scotland, and Street Soccer Scotland founder and chief executive David Duke (back centre left) pose with football coaches and players during his visit to Leith Community Centre, Edinburgh.
Pic: PA
Image:
Pic: PA

On Thursday, the sight of a guard of honour saluting the prince and princess, as the national anthem was played alongside HMS Glasgow, just emphasised the regular handbrake turns they face from the more relaxed to the formal, as they want to make the monarchy feel connected and relevant.

Then there is family to consider, in a way that past generations just haven’t.

Their working diaries are now arranged around their children. They’ve made no secret of that.

On paper, it means fewer engagements compared to other members of the family, and it has led to mutterings of that word no one within the palace wants to hear: “workshy”.

The Prince and Princess of Wales attend the naming ceremony for HMS Glasgow.
Pic: PA
Image:
The Prince and Princess of Wales attend the naming ceremony for HMS Glasgow.
Pic: PA

Making an impact?

But talking to people in Glasgow, away from the royal visit, I overwhelmingly found most thought William was setting a good example by putting family first.

What people were less clear on was his “social impact” work and what that is all about.

The community projects may not necessarily grab as much attention as William and his advisors want, but what will be fascinating to watch is the potential long-term impact of this new kind of ethos.

As the Prince and Princess of Wales stood on the steps of Buckingham Palace at a garden party on Tuesday, pausing for the national anthem, you can’t help but wonder whether those traditional elements of royal life could face a shake-up when one day he leads the firm full time.

Understandably, no one likes to talk about transition, and Prince William certainly doesn’t shout about his thoughts on what will come.

Read more from Sky News:
Arsenal win Women’s Champions League
What do dolphins get up to beneath the waves?
Mother and her three children die in house fire

But as heir, his vision for the future and what royal leadership should look like could have huge consequences for the institution.

An impact far more significant and lasting than the noisy disruptions it’s faced from other family members in recent years.

Continue Reading

UK

South Western Railway: First renationalised train service starts today… with replacement bus

Published

on

By

South Western Railway: First renationalised train service starts today... with replacement bus

South Western Railway (SWR) has been renationalised this weekend as part of the government’s transition towards Great British Railways.

The train operator officially came under public ownership at around 2am on Sunday – and the first journey, the 5.36am from Woking, was partly a rail replacement bus service due to engineering works.

Pic: PA
Image:
Pic: PA

So what difference will renationalisation make to passengers and will journeys be cheaper?

What is nationalisation?

Nationalisation means the government taking control of industries or companies, taking them from private to public ownership.

England’s railway lines are currently run by train operating companies as franchises under fixed-term contracts, but Labour have said they want to take control of the lines when those fixed terms end.

Transport Secretary Heidi Alexander. Pic: Andrew Matthews/PA Wire
Image:
Transport Secretary Heidi Alexander. Pic: PA

In its manifesto, the party vowed to return rail journeys to public ownership within five years by establishing Great British Railways (GBR) to run both the network tracks and trains.

Transport Secretary Heidi Alexander, who travelled on the first renationalised departure from London Waterloo, said, before boarding, it was “a new dawn for our railways” and “a watershed moment”.

“But I know that most users of the railway don’t spend much time thinking about who runs the trains – they just want them to work,” she added. “That’s why operators will have to meet rigorous performance standards and earn the right to be called Great British Railways.”

Please use Chrome browser for a more accessible video player

How reliable are UK trains?

How will ticket prices be affected?

Labour have argued cutting off payments flowing into the private sector could save the taxpayer £150m a year.

But the government has not explicitly promised the savings made from nationalisation will be used to subsidise fees.

It is unlikely rail fares will fall as a result of nationalisation, rail analyst William Barter told Sky News.

“The government could mandate fare cuts if it wanted to, but there’s no sign it wants to,” he said.

“At the moment, I’m sure they would want to keep the money rather than give it back to passengers. The current operator aims to maximise revenue, and there’s no reason the government would want them to do anything differently under government control.”

Please use Chrome browser for a more accessible video player

UK has most expensive train tickets in Europe

What difference will it make for passengers?

Britain’s railways are frequently plagued by delays, cuts to services and timetable issues, but Mr Barter said nationalisation will make very little day-to-day difference to passengers.

There was “no reason to think” the move would improve issues around delays and cancellation of services, he said.

“It’s going to be the same people, the same management,” he explained.

“The facts of what the operator has to deal with in terms of revenue, infrastructure, reliability, all the rest of it – they haven’t changed.”

Pic: iStock
Image:
Pic: iStock

Which services are next to be nationalised?

In the longer term, the move is likely to bring “a degree of certainty compared with relatively short-term franchises”, Mr Barter said, noting the government would only want to renationalise a franchise “because in one way or another something very bad is going on in that franchise, so in a way it can only get better”.

It also means the government will have greater accountability for fixing problems with punctuality and cancellations.

Mr Barter said: “If this is the government’s baby, then they’re going to do their best to make sure it doesn’t fail. So rather than having a franchise holder they can use as a political scapegoat, it’s theirs now.”

He added: “In the short term, I don’t think you’d expect to see any sort of change. Long term, you’ll see stability and integration bringing about gradual benefits. There’s not a silver bullet of that sort here.”

Britain’s railway services were privatised in the mid-1990s.

South Western Railway came under public ownership at around 2 am on Sunday. Andrew Matthews/PA Wire
Image:
South Western Railway came under public ownership at around 2am on Sunday. Pic: PA

Now, all services run by private companies will be renationalised as contracts reach the end of their minimum terms, with the process due to be completed by the end of 2027.

The next operator’s services to be brought under public control will be c2c – which runs between London and Essex – on 20 July, with Greater Anglia following in October, before seven more companies transfer over when their franchises end in the future.

Operators that were already under public ownership are LNER, Northern, Southeastern and TransPennine Express.

Continue Reading

UK

Former BBC executive and presenter Alan Yentob dies

Published

on

By

Former BBC executive and presenter Alan Yentob dies

Alan Yentob, the former BBC presenter and executive, has died aged 78.

A statement from his family, shared by the BBC, said Yentob died on Saturday.

His wife Philippa Walker said: “For Jacob, Bella and I, every day with Alan held the promise of something unexpected. Our life was exciting, he was exciting.

“He was curious, funny, annoying, late, and creative in every cell of his body. But more than that, he was the kindest of men and a profoundly moral man. He leaves in his wake a trail of love a mile wide.”

Read more on Sky News:
First renationalised train service starts

My week with Prince William, the quiet disruptor

Yentob joined the BBC as a trainee in 1968 and held a number of positions – including controller of BBC One and BBC Two, director of television, and head of music and art.

He was also the director of BBC drama, entertainment, and children’s TV.

Yentob launched CBBC and CBeebies, and his drama commissions included Pride And Prejudice and Middlemarch.

Alan Yentob with former BBC director general Tony Hall in 2012. Pic: Reuters.
Image:
Alan Yentob (left) with former BBC director general Tony Hall in 2012. Pic: Reuters.

The TV executive was made a Commander of the Order of the British Empire (CBE) by the King in 2024 for services to the arts and media.

In a tribute, the BBC’s director-general Tim Davie said: “Alan Yentob was a towering figure in British broadcasting and the arts. A creative force and a cultural visionary, he shaped decades of programming at the BBC and beyond, with a passion for storytelling and public service that leave a lasting legacy.

“Above all, Alan was a true original. His passion wasn’t performative – it was personal. He believed in the power of culture to enrich, challenge and connect us.”

BBC Radio 4 presenter Amol Rajan described him on Instagram as “such a unique and kind man: an improbable impresario from unlikely origins who became a towering figure in the culture of post-war Britain.

“I commend his spirit to the living.”

Continue Reading

Trending