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Winter fuel cut vote will test Sir Keir Starmer’s authority | Politics News

Sir Keir Starmer warned during the election campaign of the need for “tough decisions”, but carefully avoided setting out where the axe would fall. 

Now it’s clear who will be losing out – starting with most pensioners losing winter fuel payments worth up to £300 – unease is bubbling under the surface.

Politics live: Number 10 not ‘softening’ winter fuel payment cut

There is no doubt the government will win Tuesday’s vote as they have a huge majority of 174.

But the number of abstentions – or MPs who cannot face voting for it – especially if they number dozens, will test the prime minister’s authority and signal whether his backbenchers have the stomach for more of these cuts.

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Over the summer, Labour MPs have seen their inboxes fill up with pensioners and their families angry that those who rely on the payments fear they will face a cold winter in hardship.

The benefit will be restricted, Chancellor Rachel Reeves announced in July, to those who claim pension credit, and no longer given to the 10 million people aged over 66 who don’t.

She told MPs at a meeting tonight that it was a difficult decision, and she “wasn’t immune to the arguments against it”, but that sticking to it was a question of economic credibility.

Government sources claimed she had won the argument that “‘no one likes it, but we have to do it”.

Pensioners, she said, could blame the Conservatives for leaving a financial black hole.

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Reeves defends fuel payment cuts

The problem is that 880,000 pensioners who are eligible for this top-up do not claim it, so they will lose out despite being the poorest – including some on just £13,000 a year.

The government has run a campaign aimed at increasing the uptake, but the payments will go straight away.

Campaigners – pensioners have vocal campaign groups on their side – also say the million or so people just above the threshold will also struggle.

Dozens of Labour MPs are weighing up whether they can vote for the measure, which will be a three-line whip. Some feel the £1.5bn saving will have a painful price.

MP for York Central Rachel Maskell, who told Sky News she would abstain, said the swift timing of the vote, and lack of assessment of its impact, has left many concerned – not just those on the left sceptical about Sir Keir’s leadership.

A House of Lords committee which scrutinises secondary legislation said it had been introduced without proper evidence of its impact.

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Streeting ‘not remotely happy’ about cutting winter fuel payments

A former member of the shadow cabinet, who will be reluctantly voting for the measure, told me he expected the chancellor to be forced to make changes in the run-up to the budget.

In an interview this weekend, Sir Keir stood firm, saying there would be no change in course – as well as further difficult decisions coming down the track.

He will head to Brighton in the morning in a big moment for an incoming Labour prime minister – addressing the Trades Union Congress (TUC) annual conference.

He will be braced for criticism, with major union leaders including Sharon Graham, general secretary of Unite, and head of the TUC, Paul Novak, piling the pressure on and saying he should U-turn.

Sir Keir knows the cut will get through parliament and has shown he can be ruthless, having withdrawn the party whip from MPs who voted to axe the two-child benefit cap.

But Labour MPs who back the measure through gritted teeth, and feel it’s had too high a price, will be harder to win over next time.

Harry and Meghan’s charity ‘delinquent’ over records mishap, US authority says | UK News

The Duke and Duchess of Sussex’s Archewell Foundation has been labelled “delinquent” by California’s Registry of Charities and Fundraisers for failing to submit annual records.

A letter was sent to the charity on 3 May saying the foundation is “listed as delinquent” for “failing to submit required annual report(s) and/or renewal fees”.

The letter said an organisation listed as delinquent is banned from “soliciting or disbursing charitable funds” and its registration may be “suspended or revoked”.

It is understood that a physical cheque was sent by Archewell Foundation but not received, and a new one has been sent to resolve the issue.

It is believed the charity was only made aware of this when the delinquency notice was published.

Now that a new cheque has been posted, the foundation expects the issue will be resolved, with this being reflected in records within seven business days.

The letter from California‘s Registry of Charities and Fundraisers warned: “An organisation that is listed as delinquent is not in good standing and is prohibited from engaging in conduct for which registration is required, including soliciting or disbursing charitable funds.

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“The organisation may also be subject to penalties and its registration may be suspended or revoked by the registry.

“Once you submit the delinquent record(s), you will be notified of the amount of any late fees that are owed.”

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Archewell Foundation is a non-profit organisation that was created by Harry and Meghan in 2020.

On its website, the foundation says its mission is to “show up, do good”, adding: “We meet the moment by showing up, taking action and using our unparalleled spotlight to uplift and unite communities – local and global – through acts of service and compassion.”

Pic: Reuters
Britain's Prince Harry, Duke of Sussex and his wife Meghan, Duchess of Sussex, arrive to meet students at the Lightway Academy up on their arrival in Abuja, Nigeria, May 10, 2024. REUTERS/ Abraham Achirga
Image:
The couple arrive to meet students at the Lightway Academy up on their arrival in Abuja, Nigeria last week. Pic: Reuters

The couple visited a local charity, Giants of Africa, in Lagos, Nigeria, on Sunday, as part of a three-day visit to the country.

There, Harry and Meghan unveiled a partnership between Giants of Africa and the Archewell Foundation.

Financial Conduct Authority says 356,000 mortgage borrowers could face payment difficulties by end of June 2024 | Business News

Hundreds of thousands of mortgage holders could face payment difficulties by the end of June next year, according to analysis by the Financial Conduct Authority.

The regulator has said that, in addition to the households already behind on payments, 356,000 mortgage borrowers could face payment difficulties by the end of June 2024.

People in this cohort rolling off a fixed rate mortgage could end up paying an additional £340 a month on average.

While the numbers are high it’s a reduction of 214,000 from the 570,000 borrowers the FCA had, in September 2022, estimated would face difficulty.

The downward revision comes as the market expects the Bank of England to increase interest rates at a lower level than previously thought.

Data from the Bank of England echoes the outlook. The central bank’s Financial Stability Report, published in December, said “significant pressure” would be placed on the ability of households to meet their debts. It warned that economic conditions had deteriorated.

For now, most people are keeping up with mortgage payments, the executive director of consumers and competition at the FCA said, “but some may face difficulties”.

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Lloyds chief executive: 200,000 mortgage customers may struggle to ‘make ends meet’

“Get in touch as soon as you have concerns, don’t wait until you’re about to miss a payment before doing so. Just talking to them about your options won’t affect your credit rating,” Sheldon Mills said.

Those most likely to be “financially stretched” in the working-age population are aged 18 to 34. People living in London and the South East are also most likely to be stretched.

Being “financially stretched” however, does not mean borrowers will miss payments as some will be able to use savings, reduce spending, or increase incomes to help meet their mortgage payments, the FCA says.