Winter Fuel Payment: The Great U-Turn

Mark Morton breaks down the government's abrupt reversal on winter fuel payments and the tangled tax mechanics that follow. From pensioners navigating deductions to the complexities of taxable income, he asks—does anyone in power truly understand self-assessment? A sharp, insightful take on yet another policy puzzle.

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Transcript

Hello everybody. It's Mark Morton here in a hotel. Well, hotel is a bit of a grand turn, but above a pub in the middle of Essex waiting to do, uh, a conference for a firm tomorrow. And on the way down, I've just been listening to the, um. I dunno what you call it, U-turn I think. But, um, yes, the U-turn on winter fuel payment. 

But the amazing thing is, of course, which have started to be leaked over the weekend, that uh, not only is there a reversal of the previous pilot policy, you know, 75%. But the mechanics of this seem to be beyond the wit of man. So we're in a position now where we're gonna go back to paying the winter fuel payment to everybody and then try and recover you know, the amount through the tax system. 

Well, as all of us know that have been part and parcel of things like high income child benefit charge I'm sure this will be seamless from the revenue. I'm sure there will be no mistakes. I'm sure that. Pensioners, uh, who are that well-known group of people who are, you know, tremendously tax and it literate will fully understand their pay as you earn codes being adjusted. 

Uh, having tried to, uh, delve into a bit of detail interestingly on the way down, most of the reporters were talking about earnings in based on 35 grand of earnings. And I'm thinking, uh, most pensions are. Retired. So it can't be earnings. The, the press release from the treasury talks about income, but then to add a bit more complexity, it talks about taxable income. 

Well, does that mean before the personal allowance or does that mean. After the personal allowance. 'cause I would suggest, you know, taxable is in excess of your personal allowance. But, uh, anyway, something else for us to look forward to. You will be able to charge pensioners who ask you for help with this. 

I suggest, ooh, about 150 quid, depending on their age, uh, which strangely enough is the winter fuel payment. But there we go. So, a silver lining for somebody. Perish the thought that you have two pensioners in a household and one is not entitled to this and one is, and then of course the fund will really start. 

But there we go. Some more fun to, uh, look forward to does make you wonder if any government minister has ever heard of self-assessment, the tax system, and understands what really goes on. But anyway, I will leave you, uh, to your day. Good luck for 25 6 onwards.