Finance (No. 2) Bill (Third sitting)

Martin Wrigley Excerpts

Thursday 29th January 2026 Public Bill Committees

[Dan Tomlinson]

There are different ways of measuring income. In this instance, the Government’s decision is that total income is an appropriate way of measuring it. We keep all taxes and all thresholds under review. We are legislating for the threshold to remain at £35,000 but, as hon. Members with experience in government in the run-up to Budgets will know, all things are always considered in the round. Other thresholds in the tax system were frozen by the previous Government and, as was debated in Committee of the whole House a few weeks back, income tax thresholds were frozen as well.

On the point that the hon. Member for Maidenhead made about tapering, the Government’s view is that that would add complexity to the system. We think that a simple threshold is a preferable approach.

[Martin Wrigley (Newton Abbot) (LD)]

The Minister mentions that our suggestion would add complexity to the system, but the system, in and of itself, is becoming overly complex. It started very simply: “Here is a winter fuel allowance for a harsh winter.” Every winter is harsh. Would it not be much simpler and more efficient to wind this into the main pension in future years? Will the Government consider that?

[Dan Tomlinson]

The Government’s view was that it was right to put a threshold in the system. Labour Members do not think that it is right for the super-rich to continue to receive the winter fuel payment. On the hon. Member’s broader point, the Government’s policy is to continue with the payment as it stands, as a stand-alone payment for those who have a total income below £35,000 a year.

Question put and agreed to.

Clause 55 accordingly ordered to stand part of the Bill.

Schedule 10

Winter fuel payment charge

Amendment proposed: 41, in schedule 10, page 395, line 28, at end insert—

“(1A) The Treasury must, each tax year, amend the amount specified under section 681I(1)(b) by the change in the level of the consumer prices index in the previous tax year.”—(James Wild.)

This amendment would provide for the £35,000 income threshold for implementation of the winter fuel payment charge to be uprated annually in line with the consumer prices index.

Question put, That the amendment be made.