RACHEL Reeves will hit 1.5million pensioners in the pocket by freezing income tax thresholds at the Budget, experts fear.

The move risks them being dragged into higher tax bands, as the state pension is set to rise.

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It will be a fresh blow to retirees, many of whom have been stung by the Chancellor’s axing universal winter fuel cash.

Jon Greer, from finance firm Quilter, said: “The triple lock may increase state pensions but, with tax thresholds frozen, many will find themselves paying taxes on what should be a lifeline.

“For those with state and private pensions, the hit will be felt sooner, eroding their incomes at a time when financial security is crucial.”

Thresholds were fixed by the Tories until 2028 but Ms Reeves is thought likely to extend the freeze.

Meanwhile, she has been pressed to find money to help support struggling town halls — as one in four councils expect to, in effect, go bust in the next two years.

One in ten council heads say they have considered asking the Government for support.

The body’s Labour chairwoman Louise Gittins described the current financial crisis as “extraordinary” ahead of their annual rally in Harrogate, north Yorkshire, from today.

She said: “The autumn Budget must provide councils with the financial stability they need to protect the services our communities rely on every day.”

BRITISH health tech firm Zoe, championed by celebrities including Davina McCall, has launched a second round of layoffs in six months.

Last year Zoe was deemed one of the fastest-growing firms in the country as health fans signed up to wear its bright yellow blood sugar sensors on their arms.

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However, in April the firm admitted that it had overexpanded its workforce and had to cut costs by 20 per cent.

The Sun can reveal it is now making further job cuts while insiders claim sales are faltering.

Sources said staff had been told via a video call there had to be further changes and redundancies were required.

A consultation with staff is now ongoing, a legal requirement for companies making cuts of more than 20 people. It has refused to confirm the scale of the job cuts.

One worker said: “There is a terrible atmosphere.

“Everyone is scared and we don’t know whether we will have jobs at the end of this four-week window. It’s just looming over us.”

Co-founder Professor Tim Spector, who started the firm seven years ago, has been credited for pushing public awareness about “gut health”.

Zoe’s cheapest starter package costs £299 and charges users a further £25 a month for recipe guides and diet tips.

The brand has a deal with Marks & Spencer to produce mini “gut shots” of fermented milk for £2 and also a cereal range with Waitrose.

The business raised £11.5million in July to fund its expansion.

The firm said: “We are restructuring our teams to continue on our ambitious mission of transforming the health of millions.

“We are dedicated to keeping our employees engaged and informed in the coming weeks.”

A RECORD HIGH FOR UK MUSIC

RAYE, Dua Lipa and Ed Sheeran helped push the value of British music exports to a record high of £775million last year.

However, intense competition from artists from Latin America and South Korea is biting into business, figures from British music industry body the BPI show.

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Last year’s 7.6 per cent rise in exports was just half the 2022 rate of growth, it said.

Britain accounts for about 10 per cent of global music streaming, with timeless tunes from the likes of Elton John, The Beatles and Queen still proving popular.

BPI chief executive Jo Twist said: “It is encouraging — but we can and must do even better in the face of fierce global competition.”

CELEBS’ AD QUIZ

TWENTY social media influencers are being quizzed under caution by the City watchdog about their illegal promotion of financial products.

The Financial Conduct Authority said there had been a rise in so-called “finfluencers”, who promote foreign currency exchanges, crypto and complex trading to users.

The FCA says they are not authorised or qualified to give financial advice.

It charged nine stars this year, including Love Island’s Eva Zapico and Towie’s Lauren Goodger, for plugging dodgy investments on social media.

TEN-PIN’S A WIN

HOLLYWOOD BOWL is striking record levels of cash after tempting ten-pin fans to spend more on its snacks, drinks, and arcade games.

The bowling alley chain, which has 72 locations in the UK and 13 in Canada, saw a 7.2 per cent rise in annual revenues to £230.4million.

UK sales rose by 4 per cent to £200million, but were flat once new openings were stripped out.

The firm has benefited from families looking for low-cost indoor entertainment in the unpredictable weather.

RATES CAUTION

ONE of the Bank of England’s rate-setters says she favours a “cautious” approach to lowering interest rates, despite some economists’ predictions of hefty rate cuts next year.

Megan Greene wrote in the Financial Times yesterday she was concerned about rushing into a rate-cutting cycle and cautioned a consumer recovery “could take much longer”.

It comes as many still have to refinance their mortgages at higher rates than before.

Goldman Sachs yesterday said rates could fall to 2.75 per cent by next November.

V.W. £27M TAB FOR CAR HELL

VOLKSWAGEN has been fined £5.4million for its unfair treatment of vulnerable customers, and told to pay £21.5million in compensation.

The Financial Conduct Authority found nearly 110,000 customers who suffered due to “serious failings” by the German car giant’s finance arm over six years.

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A probe by the watchdog revealed VW took cars away from vulnerable customers who were struggling to keep up with payments, without considering other options.

It also charged them the extra costs of repossessing their car, even when customers said they had no means to pay.

In one case, the firm took back the vehicle from someone with depression and who had previously attempted suicide, despite telling VW they needed the car for work.

The watchdog’s Therese Chambers said: “Volkswagen Finance made tough personal situations worse.

“The fine and redress should send clear signals to lenders they need to properly support those in financial difficulty.”

AXE SHOP TAX PLEA

MORE than 300 business leaders have called the UK’s tourist tax a “spectacular own goal” and urged the Chancellor to scrap it in the Budget.

Bosses at Mulberry, John Lewis and Shakespeare’s Globe wrote to Rachel Reeves to argue the UK is at a “global disadvantage” as the only country in Europe not to offer tax-free shopping to overseas visitors.

The tax is costing the economy £11.1billion, analysis by the Centre for Economics and Business Research says.

LABOUR’S worker reforms will cost business £5billion a year and raise the risk of higher prices and job losses, the Government’s analysis shows.

Nearly one in five companies will have to react to the cost burden by cutting their workforce.

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The overhaul by Deputy PM Angela Rayner and Business Secretary Jonathan Reynolds includes changes to sick leave rights and a ban on zero-hours contracts.

One in ten employers may end up cutting workers’ pay, analysis of the Office for National Statistics data shows.

It also suggested 40 per cent would most likely raise their prices, risking a return of inflation.

The alternative is businesses losing profits by absorbing costs.

The party acknowledged smaller businesses would face a bigger hit, despite ministers arguing against exemptions.

The Government has said it would “consider mitigation”.

Analysis showed the largest annual bills could be £1billion for ending zero-hours contracts and another £1billion for improving sick pay.

Ms Rayner said yesterday: “We said we would get on and deliver the biggest upgrade to rights at work in a generation and the growth our economy needs and that is exactly what we’re doing.”

Shadow Business Secretary Kevin Hollinrake is urging FTSE 100 bosses to raise their concerns about Labour’s package of regulation.

And Neil Carberry at the Recruitment and Employment Confederation said: “Today’s impact assessment shows the cost impact will fall on firms who are already facing a wide range of other rising costs.”

FANS of a popular bar have been left devastated after the family-run business announced its closure.

Bar 7 was unveiled in Margate town centre in December last year, but the business – with a bistro, bar and hire space – will be shuttering at the end of this week.

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The decision that’s left customers devastated was announced by the company’s owner Wendy Knight, who ran the popular bar with her husband Douglas and son and daughter Karl and Shelby.

The family say health concerns are behind the shop’s closure.

In a statement on Facebook, they said: “We wanted to let everyone know as from the end of next week we will be closing our doors.

“We want to take this opportunity to thank everyone who ever helped us get on our feet and get started, with out you all it couldn’t have happened.

“We as a family need to focus on our health. This is not goodbye, but more see you later.

“We want to wish the new owners all the best, we will let them make there announcement.”

Distraught customers took to the comments of the announcement to express their sadness over the abrupt closure.

One user said: “Such a shame we really enjoyed the comedy clubs, if you open up again anywhere let us know.”

Another commented: “Hope you are all ok.”

One concerned customer said: “Oh that’s not good sorry hope all is well Wendy.”

And: “Health and your family comes first.”

What else is happening on the high street?

Many retailers have had to make changes in recent times in a bid to survive the cost of living crisis.

We have seen several big losses in the last 12 months including popular discounter Wilko and stationary brand Paperchase.

This year, health and beauty chain The Body Shop fell into administration and announced the closure of many of its 200 stores.

Almost 500 staff are set to lose their jobs after 75 stores were earmarked for closure.

Plus, clothing retailer Ted Baker fell into administration in March 2024 too, with 15 stores having shut by April 19.

Other retailers such as Iceland, Boots and Matalan have been slimming down the number of stores they have in their portfolio.

Just this spring Boots is closing a total of nine sites, as part of its wider plans to get rid of 300 locations.

These closures will see the retailer’s total shops reduced from 2,200 to 1,900.

This has upset a lot of locals in the affected towns, however, the health and beauty chain has said where stores are closing there is an alternative shop less than three miles away.

THOUSANDS of state pensioners will be impacted by a major change to their benefits.

Government in Scotland is launching a new benefit that will eventually see Attendance Allowance scrapped in the country.

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The new benefit – known as the pension age disability payment – will give extra cash to pensioners suffering from long-term illnesses or who are terminally ill.

This is almost identical to Attendance Allowance, but Scottish officials say the new process will make it easier to nominate someone to support them in their talks with the benefits officer for the country.

Applications to apply for the support opened in five trial areas today including,  Argyll and Bute, Aberdeen, Orkney, Shetland and Highland.

However, the whole region will have the benefit introduced by April 2025.

Successful claimants will receive between £290 and £434 per month to help them.

Again, the amount applicants receive will not be different to what they currently get on Attendance Allowance and how much you receive depends on the severity of your illness.

Shirley-Anne Somerville, social justice secretary welcomed the rollout, saying it is “more important than ever that older disabled people across Scotland get all the financial support they are entitled to” due to the cost of living.

“This new benefit has been developed by listening to older disabled people and we have made many changes, including making it easier for them to nominate someone to support them in their engagement with Social Security Scotland, something they told us was important to them,” she said.

This was echoed by Tommy Campbell, an executive committee member at the Scottish Pensioners’ Forum.

He said: “We support many people of state pension age and over with long-term health conditions such as dementia, Alzheimer’s and arthritis who would really benefit from this financial support”

It’s worth bearing in mind that this change only applies to Scottish residents.

So if you live in England or Wales you will continue to receive Attendance Allowance, which is paid by the DWP.

The benefit is worth either £72.65 or £108.55 a week, depending on your needs.

How much can I get?

The pension age disability payment can give you extra money if you have care needs because of a long-term illness.

It’s paid at two different rates, lower and higher. The amount you get depends on your care needs.

For example, the lower rate is £72.65 a week and is for people who need help or supervision during the day or night.

Meanwhile, the higher rate is £108.55 a week and is for people who need help or supervision during the day and night.

If you’re terminally ill you’ll automatically get the higher rate.

How can I apply?

When you can apply will depend on where you live. The payment is opening for new applications in stages across Scottish council areas.

You can apply for the pension age disability payment now, if you are of state pension age and you live in:

• Aberdeen City
• Argyll and Bute
• Highland
• Orkney
• Shetland

You’ll be able to apply from March 24 2025 if you live in:

• Aberdeenshire
• Angus
• Clackmannanshire
• Dundee City
• East Ayrshire
• Falkirk
• Fife
• Moray
• Na h-Eileanan Siar (Western Isles)
• North Ayrshire
• Perth and Kinross
• South Ayrshire
• Stirling

From April 2025 all councils in the country will have made the switch.

If you are already claiming Attendance Allowance then you will not need to make a new application.

The Scottish government will move you to payment without you having to do anything in 2025.

OVER one million pensioners still eligible for the winter fuel payment should look out for an exact code signalling it has landed in bank accounts within weeks.

The cash offers crucial support to pensioners struggling to afford energy bills over the colder months and is worth up to £300.

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Those who are eligible for the benefit should have either received a letter, or will get one in the coming month, telling them how much they will be paid.

Payments will then be made automatically in November or December.

Previously, the winter fuel payment was available to anyone of state pension age, which is currently 66, but this autumn the government scrapped the scheme for millions.

Now pensioners must also be in receipt of pension credit or certain other means-tested benefits to qualify for the payment.

If you are still eligible for the winter fuel payment you should look out for a particular code on your bank statement to see that the payment has been made.

For those living in England and Wales, the payment will appear as the customer’s National Insurance (NI) number followed by “DWP WFP”.

Whereas those in Northern Ireland should look for their NI number followed by “DFC WFP”.

For example if you live in England and your NI number is QQ123456B the payment would show up as QQ123456B DWP WFP.

If you don’t think your winter fuel payment has come through, check for this code in your bank statement before consulting the Department for Work and Pensions (DWP).

And if you haven’t yet checked whether you meet the new criteria for the payment, make sure you’re up to date.

Pensioners who are worried about missing out on the payment this winter can seek support from a long list of schemes – which will also be detailed at the end of this article.

What is the winter fuel payment and who is eligible?

The winter fuel payment is issued to state pensioners on certain benefits to help cover the cost of hiked up energy bills over the colder months.

This is because households tend to use more energy for heating as temperatures drop.

The payment, which is made in November or December, is automatic meaning you don’t need to apply.

Those on Universal Credit with a joint claim where one member was over the state pension age previously had to apply to get the payment.

To automatically qualify this year, you need to be of state pension age and in receipt of one of the following benefits:

• Pension Credit
• Universal Credit
• income-related Employment and Support Allowance (ESA)
• income-based Jobseeker’s Allowance (JSA)
• Income Support
• Child Tax Credit
• Working Tax Credit

You must have an active claim for these benefits during the “qualifying week” which is from September 16 to 22 this year.

You only need to apply this year if:

• you moved to an eligible country before January 1, 2021
• you were born before September 23, 1958
• you have a genuine and sufficient link to the UK – this can include having lived or worked in the UK and having family in the UK

Households can claim by phone from October 28 via the number 0800 731 0160.

They have until March 31, 2025 to do this.

Or to claim by post, you’ll need to fill in the winter fuel payment claim form and post it to the Winter Fuel Payment Centre.

This is available at www.gov.uk/winter-fuel-payment/how-to-claim.

What energy bill help is available?

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There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.

If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.

This involves paying off what you owe in instalments over a set period.

If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.

Several energy firms have grant schemes available to customers struggling to cover their bills.

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But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.

For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.

British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.

You don’t need to be a British Gas customer to apply for the second fund.

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EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.

Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).

The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.

Get in touch with your energy firm to see if you can apply.

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More energy help for pensioners

In response to the government’s slash to the winter fuel payments, Octopus Energy has launched a scheme offering discretionary credit of between £50 and £200 to pensioners.

British Gas has also set aside over £140 million this winter for its Individual and Families Support Fund.

And Scottish Power‘s Hardship Fund has handed out more than £60 million to its struggling customers.

To find out what you can get, check the offers from your own supplier first by going to their website or asking someone on the phone.

Most schemes are exclusive to customers, but the British Gas Individual and Families fund is available to everyone if your own supplier can’t help.

Help can also be accessed from your local council via the Household Support Fund, which has renewed a fresh pot of £421 million finding for vulnerable households.

To find out if you are eligible, go to your council’s website and read over the conditions of the scheme.

If you’re just looking for simple ways to reduce your bill this winter, each of these supplier schemes, as well as the Household Support Fund also offer free electric blankets as part of their deal.

For example, Octopus have said they will distribute 20,000 electric blankets from Dreamland to its most vulnerable customers, keeping them warm for “as little as 3p an hour”.

The “heat yourself not your home” approach is trending fast, with retailers such as B&M introducing ranges of affordable self-heating appliances.

However, it is important to note that the elderly should not avoid turning the heating on if they are cold – for energy help contact your provider or local council, or read our article here.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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