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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.”

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Government ‘doesn’t think’ Donald Trump will impose trade tariffs on UK – but is ‘prepared for all scenarios’

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Government 'doesn't think' Donald Trump will impose trade tariffs on UK - but is 'prepared for all scenarios'

The government doesn’t think Donald Trump will impose trade tariffs on the UK, but is “prepared for all scenarios”, a cabinet minister has said. 

Darren Jones, the chief secretary to the Treasury, told Sky News’ Sunday Morning with Trevor Phillips that the former president’s return to the White House “could be an enormously positive thing with lots of opportunities”.

Mr Trump has threatened to impose tariffs on all imports into the United States, singling out Canada, Mexico, and China as countries that could face steeper measures within hours of his inauguration on Monday.

Asked what the government will do if that happens to the UK, Mr Jones said that was a “hypothetical” question and to wait and see “what actually happens”.

Politics Hub: Trump ‘within his right’ to make statement on tariffs

“If that were to happen, I will come back and lay out the details for you. But the point is, is that I don’t think we’re going to be in that scenario,” Mr Jones said.

Darren Jones is asked the same quesion eight times by Kay Burley
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Darren Jones

He said there is a narrative in the UK that Mr Trump’s presidency poses “a big risk for Britain”, when this isn’t the case.

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“Britain is a brilliant country with huge capabilities and assets which are valued not just to the British people, but to the American economy and other parts of the world,” he said.

“I have no doubt whatsoever that under the Trump administration there are going to be plenty of opportunities that we can seize, and we should be positive about that and be strong about securing this deal.”

Mr Jones confirmed there is ultimately a plan if tariffs are imposed, but said it isn’t for him “to lay out the details in advance of something actually happening on TV”.

“It’s not breaking news that the government prepares for all scenarios,” he added.

“My broader point is that we shouldn’t be looking at president-elect Trump’s inauguration as a risk, or a bad thing for the UK. It could be an enormously positive thing with lots of opportunities.”

President-elect Trump will be sworn in to a second term in office on Monday, following his election victory in November, and there have been concerns over what his pledged tariffs could mean for economies around the globe.

The former businessman has been clear he plans to pick up where he left off in 2021 by taxing goods coming into the country, making them more expensive, in a bid to protect US industry and jobs.

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UK ‘should pursue free trade deal’ with US

Shadow foreign secretary Dame Priti Patel, who is in Washington DC for the inauguration, said Mr Trump is “within his rights to make the statements that he wants around tariffs… but as ever this is a discussion and a negotiation”.

Priti Patel in Washington DC
Image:
Priti Patel in Washington DC

She said the Labour government should resume her party’s talks over a post-Brexit free trade deal with the US and “not even enter into these discussions around tariffs”.

A trade deal with the US had been set as a priority in the Conservative’s 2019 manifesto but was not achieved by the time of the general election in July last year, which they lost.

Ms Patel went on to call Reform UK leader Nigel Farage a “pop-up act” and “not relevant” when asked if her party should make peace with him to get on well with Mr Trump, given the close relationship of the pair.

She said the Conservatives and Republicans are “sister parties” with “enduring, long-standing ties”.

“We’re not a pop-up act in the way in which they [Reform UK] are… so I don’t think that’s particularly relevant,” she said.

However, the Lib Dems accused the former home secretary of “competing with Reform to be most submissive toward Trump”.

Confidence in Mandelson’s appointment

Mr Trump’s inauguration has also caused a stir after reports in the Sunday papers suggested he could reject Lord Peter Mandelson as Sir Keir Starmer’s nomination for the UK’s ambassador to the US.

The Labour grandee has been critical of Mr Trump in the past, and was last month branded an “absolute moron” by a Trump campaigner.

Lord Mandelson. Pic: PA
Image:
Lord Mandelson. Pic: PA

However Mr Jones signalled he was confident that the Blair-era minister would take up his position, telling Sky News he “doubts very much” the media reports are true.

“It’s probably being propagated by some politicians that would like to cause a bit of a nuisance. I doubt that will be the case.”

Govt ‘doesn’t agree’ with Khan’s Trump comments

Mr Jones was also forced to distance himself from comments made by Labour’s Mayor of London Sadiq Khan.

Mr Khan has warned of a century-defining battle against “resurgent fascism”, writing in The Observer that “these are deeply worrying times, especially if you’re a member of a minority community”.

Mr Jones said he does not associate with that language and questions about it “are for Sadiq to answer.”

He later told the BBC: “I speak on behalf of the government and we don’t agree with it.”

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New photo of Sophie, Duchess of Edinburgh, shared ahead of her 60th birthday

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New photo of Sophie, Duchess of Edinburgh, shared ahead of her 60th birthday

A photograph of the Duchess of Edinburgh smiling has been released by Buckingham Palace to celebrate her upcoming 60th birthday.

The photo of Sophie mid-laugh perched on a window seat at her home in Bagshot Park was captured by the London-based photographer Christina Ebenezer earlier this month.

The royal was sporting a cream pleated skirt and dark long-sleeved knit.

A portrait of Sophie, Duchess of Edinburgh, released for her 60th birthday
Pic: Christina Ebenezer / PA
Image:
Picture released for Sophie’s birthday. Pic: Christina Ebenezer / PA

Buckingham Palace said Sophie chose the Nigerian-born photographer as she was interested in her creative style of photography and wanted to support a rising female photographer.

Ebenezer has been named both a British Fashion Council New Wave Creative, and a Forbes 30 Under 30 Arts & Culture Leader. Two of her portraits were unveiled at the National Portrait Gallery in partnership with Chanel last January.

The statement from the palace added: “As the Duchess looks ahead to turning 60, Her Royal Highness has a renewed sense of excitement and commitment to her work around gender equality and looks forward to further embracing and championing this issue in the years to come.”

Sophie will celebrate her birthday on Monday privately at home with the Duke of Edinburgh.

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Since the King’s coronation in 2023, the Duchess of Edinburgh has played a key role in the Royal Family, making official visits overseas and stepping in for the monarch as he underwent cancer treatment.

In April last year, Sophie became the first member of the Royal Family to visit Ukraine after Russia’s full-scale invasion began, and met with Ukrainian President Volodymyr Zelenskyy and first lady Olena Zelenska.

Later, the duchess met with five women who fled the Sudan civil war in Chad and was moved to tears hearing about their “devastating” experiences with sexual violence.

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Ellis Cox: Mother appeals to catch son’s killer on birthday anniversary

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Ellis Cox: Mother appeals to catch son's killer on birthday anniversary

Fresh appeals have been made for information on what would have been the 20th birthday of Ellis Cox, who was shot dead in Liverpool last June.

A number of people have been arrested in connection with the murder at Liver Industrial Estate, but no one has been charged yet.

The 19-year-old’s family and police have paid tribute to him and called for those with information to come forward.

He was shot in the back after a confrontation between his friends and another group of up to three males on Sunday 23 June.

Pic: Merseyside Police
Image:
Ellis Cox who was shot dead in June 2024. Pic: Merseyside Police

His mother Carolyn paid tribute in an appeal to coincide with what would have been his 20th birthday.

“He was so kind… so laid back, so calm, so mature for his age. And he was just funny. Very funny.

“He was my baby… no mum should have to bury a child. He was my life. And I don’t know what to do without him.”

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Mother of Ellis Cox, Carolyn Cox (blonde hair) and his aunt Julie O'Toole speaking on what would have been Ellis' 20th birthday. He was shot on 23/06/2024 at Liver Industrial Estate
INGEST 28 NM20 GRANADA ELLIS COX FAMILY INTERVIEW POOL EMBARGOED UNTIL 0001 18 JAN 2025
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Mum Carolyn Cox (left) and aunt Julie O’Toole (right) are looking for answers

Meanwhile, his aunt Julie O’Toole said he was “the sort of person I think you’d be hard pressed to find anyone to say anything negative about. He was loyal, fiercely loyal… everything was about his family”.

To pay tribute to Ellis, Liverpool City Council will be lighting up the Cunard Building and Liverpool Town Hall in orange on Saturday.

Detective Chief Inspector Steve McGrath, the Senior Investigating Officer, speaking about fatal shooting of Ellis Cox on 23/06/2024 at Liver Industrial Estate
INGEST 28 NM20 GRANADA ELLIS COX FAMILY INTERVIEW POOL EMBARGOED UNTIL 0001 18 JAN 2025
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DCI Steve McGrath does not believe Ellis was involved in criminality

Detective Chief Inspector Steve McGrath, the senior investigating officer, spoke about the information gathered so far, six months on from Mr Cox’s murder.

“I’m satisfied that the group that he was with was probably the target… and I would say that’s got something in relation to do with localised drug dealing in that area. But Ellis had no involvement in that whatsoever,” he said.

He added that police are looking for “really significant pieces of evidence now”, including “trying to recover the firearm that was used in relation to this, looking to recover the bikes that were used by the offenders”.

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Mrs Cox also appealed for people to come forward with information.

“If you know anything, don’t let us get to [his] next birthday and still know nothing.

“We need to get justice for Ellis. And we need to get the people who took him from us off the streets.”

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