Many are now unhappy that the winter fuel allowance for pensioners not on Universal Credit has been stopped by the new Chancellor. It is not a straightforward issue. A large number of pensioners do not need this extra money to stay warm in the winter and cope with the cost of living. The problem arises when those that can claim benefits fail to do so. They thus miss out not only on the benefits but also the fuel allowance. Then there is the other group that lie just above the line for benefits and have a low income. They will feel the pinch with this measure.
We are all aware that the public purse is short of money. We also know that public services are in dire need of funding to provide those essential services upon which we all depend. Getting the balance right is no easy task as successive governments have found. Expert opinion states that all incoming governments should get the difficult and unpopular measures done early in the parliamentary cycle. Labour has clearly done this.
We have seen doctors and teachers get long-awaited pay rises. If these key workers had not been dealt with it is certain that we would have had a winter of strike action in these two vital aspects of society. They have both waited a long time for action.
We now all await the October Budget. Whilst in America recently Chancellor Rachel Reeves has been at pains to stress that she will have to make some tough decisions if we are to keep on top of the problems. What therefore can we expect from her budget?
Fuel duty has been on hold for 13 years and is highly likely to be changed. An increase in diesel and petrol will hit rural areas hardest and may well lead to food costs increasing. Cigarettes and alcohol are frequently taxed to bring in revenue and these also look likely targets for an increase. Given that the Government have said there will be no increase in income tax, VAT, or national insurance the money for services must come from somewhere. Inheritance tax, Capital Gains Tax and keeping tax thresholds at their current level are all possible targets for change. Increased government borrowing and cuts across all government departments except health, defence and education will cause problems.
The fuel cap is about to be lowered. This sounds like good news but the wholesale cost of fuel will increase so there will be little if any real financial benefit.
Yet again it is time to tighten our belts. Extra blankets and pullovers will be the order of the day for many. The homeless issue and child poverty will only add to the problems this winter. The last thing we need is civil unrest which hopefully we can now control.
With these issues we should be grateful that at least we are not suffering from the many wars across the globe. Britain remains a great country to live in.