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From transport to teachers and housing to health: Key points of Rachel Reeves' spending review

  • On June 11, 2025, Chancellor Rachel Reeves revealed adjustments to the Winter Fuel Payment scheme affecting residents of England and Wales during her Spending Review statement in the House of Commons.
  • The update reverses Labour’s prior policy limiting payments to pensioners receiving means-tested benefits, following a major U-turn by Prime Minister Keir Starmer.
  • Under the new rules, payments will be awarded automatically to households with someone over state pension age but must be repaid through HMRC if individual income exceeds £35,000, with an option to opt out.
  • Reeves acknowledged that adjusting the payment criteria was challenging but essential to maintain fairness, emphasizing that all low-income pensioners would still receive support, while Starmer endorsed the choice as necessary for economic stability.
  • The policy reversal adds approximately £1.25 billion in spending and accompanies broader commitments including £39 billion for housing and £15.6 billion for public transport projects.
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Manchester Evening News broke the news in Manchester, United Kingdom on Wednesday, June 11, 2025.
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