NFU seizes on Starmer’s Winter Fuel climbdown to push for ‘deeply unjust’ inheritance tax reversal as elderly farmers fear becoming ‘burden’ on families
British farmers have issued an urgent plea to Sir Keir Starmer to follow his Winter Fuel Payment U-turn with a reversal of the devastating inheritance tax changes that could force 75% of family farms to sell up.
The National Farmers’ Union seized on the Prime Minister’s announcement that he would expand eligibility for winter fuel payments – worth up to £300 – to demand similar consideration for elderly farmers facing financial ruin under the so-called ‘family farm tax’.
NFU President Tom Bradshaw said: “Today’s change shows the government is willing to listen to concerns about the elderly. We’re now urging them to extend that same support to elderly farmers who have spent their lives feeding the nation.”
ELDERLY FARMERS ‘STUCK IN ABHORRENT POSITION’
The union warned that elderly farmers across Britain were “stuck in an abhorrent position” as many “feel like a burden on their families” ahead of the inheritance tax changes coming into force in April 2026.
Under Chancellor Rachel Reeves‘ controversial autumn budget announcement, while there would continue to be no inheritance tax due on combined business and agricultural assets worth less than £1million, above that there would be a 50 per cent relief, at an effective rate of 20 per cent.
But NFU analysis shows that around 75% of commercial family farms will be above the £1 million threshold – far higher than the government’s claim that only 27% would be affected.
“Many are deeply worried not just about their own future but about becoming a financial burden on their families,” Mr Bradshaw added.
WINTER FUEL U-TURN SPARKS HOPE
The Prime Minister’s dramatic climbdown on winter fuel payments has given farmers fresh ammunition in their fight against the inheritance tax changes.
Speaking at Prime Minister’s Questions on May 21, Starmer told MPs: “As the economy improves, we want to ensure that as we go forward more pensioners are eligible for winter fuel payments.
The U-turn came after intense pressure following Labour’s poor performance in May’s local elections, with the cuts to pensioner support repeatedly cited by defeated councillors as a key factor in voter anger.
More than 10 million pensioners had lost out on the payments when they became means-tested last year, sparking fury across the country.
‘CREDIBLE ALTERNATIVE’ IGNORED
The NFU has put forward what it calls a “credible alternative” known as the ‘clawback’ mechanism, which would be cost-neutral to the government while avoiding the devastating impact on farming families.
Under this proposal, agricultural assets would initially be exempt from inheritance tax, but the tax would be “clawed back” if the assets were sold within seven years of the death of the business owner.
NFU modelling shows this could raise between £422 million and £686 million – potentially 7% more than the Treasury estimates its current proposal will raise.
“Put simply, farmers don’t get money when they inherit, they get the farm, the business asset, and often the debt,” Mr Bradshaw explained. “Any money they do get, they get when they sell. So our suggestion is based on that premise.”
GOVERNMENT ‘REFUSES TO LISTEN’
Despite multiple Freedom of Information requests, the government has refused to publish the financial analysis behind its decision to impose the inheritance tax changes.
NFU Deputy President said: “They must recognise the impact that it is having on the industry and make some changes. If they can do it for winter fuel, they can definitely do it on the inheritance tax of farmers. It’s quite easy to do.”
The union revealed that both Mr Bradshaw and Country Land and Business Association President Victoria Vyvyan had written to Sir Keir Starmer asking him to pause the policy and hold a consultation.
FOOD SECURITY FEARS
The NFU warned that mounting fears of Britons walking away from the farming industry would result in a drop in national food security.
With the UK currently producing around 60% of the food consumed domestically, any significant reduction in farming capacity could leave the nation more vulnerable to international supply chain disruptions.
Mr Bradshaw emphasised: “There is still time to change course. Just as the government has listened to the public and MPs on winter fuel payments, it must now listen again, to protect the people who have worked the land and produced our food for generations.
CROSS-PARTY OPPOSITION
The farmers’ plea has won support from across the political spectrum. Reform UK leader Nigel Farage was among those protesting for a policy reversal, calling the tax “nothing short of a betrayal against our agricultural industry and rural communities.
Conservative Party leader Kemi Badenoch also condemned the Government changes to the inheritance tax for farmers, branding the policy “immoral.
Even within Labour ranks, concerns are growing. The influential cross-party Environment, Food and Rural Affairs Committee has called on the government to delay implementation of its farm inheritance tax changes.
MENTAL HEALTH CRISIS WARNING
In December, Mr Bradshaw broke down in tears as he warned MPs that some elderly farmers were considering taking their own lives before the tax changes come into effect in 2026.
He told the committee of “the most severe human impacts which we believe could end up being triggered by this” and accused the Government of putting people in “awful, awful, unacceptable positions.
No policy should be published that has that unintended side effect,” he said, his voice breaking with emotion.
GOVERNMENT DEFENDS POSITION
A Government spokesman said it was still committed to supporting farmers and “the vital role they play to feed our nation”, but has shown no willingness to reconsider the inheritance tax changes.
The Treasury has maintained that the £1 million threshold is designed “to help protect family businesses and farms” and that the measure is necessary to raise revenue and address the UK’s challenging fiscal position.
However, with the Winter Fuel Payment U-turn now confirmed, pressure is mounting on ministers to show the same flexibility on farming taxation.
As Mr Bradshaw concluded: “Whatever our other disagreements about the family farm tax, we cannot imagine ministers ever meant to put older farmers in this awful position.”
Image credit: Tractor and Trolley parade pauses outside National Farmers Union HQ, Shaftesbury Avenue by Peter Trimming, licensed under CC BY-SA 2.0, via Geograph.
