New analysis suggests that the anticipated savings from the cut to pensioner winter fuel payments will be significantly lower than expected, posing a challenge for Rachel Reeves in her efforts to address the UK's financial shortfall. The surge in claims for pension credit is expected to increase the number of individuals eligible for these payments and other benefits, further complicating the situation. Reeves, the Chancellor, has been cautioned that the reduction in winter fuel payments may yield hundreds of millions less in savings than initially projected. This development adds pressure to her plans to stabilize the nation's finances. Additionally, Reeves and her Treasury team are reassessing aspects of a strategy aimed at tightening regulations on non-domiciled tax status, amid concerns that it may not generate the expected revenue.

Rachel Reeves may reconsider her plans to eliminate the non-domicile tax status, according to recent reports. The Labour politician had aimed to generate approximately £1 billion annually by targeting this tax benefit that primarily benefits the wealthy.