Chancellor Rachel Reeves has confirmed a major U-turn on winter fuel payments, announcing that millions more pensioners will receive support this winter following a fierce public and political backlash.
The decision comes after Labour’s controversial move to restrict the payment to pensioners on Pension Credit last year—a change that stripped the allowance from around 10 million people and was widely blamed for Labour’s poor performance in May’s local elections.
The cut particularly hit those just above the benefit threshold, who saw no support despite soaring energy bills.
Speaking after her Spending Review speech in Manchester, Reeves said the eligibility threshold would rise this year: “People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter.”
The winter fuel payment, worth up to £300, helps older people manage rising energy bills during the coldest months.
Previously a universal payment to all over-65s, it was one of the first benefits slashed by Reeves after Labour’s election landslide. But the fallout—from charities, MPs and voters especially in the local elections —has forced a rethink.
Prime Minister Sir Keir Starmer had already hinted at a shift, admitting the policy had created confusion and needed “clarity”. But pressed at PMQs by Conservative leader Kemi Badenoch, he declined to say how many of the 10 million affected pensioners would now be included.
Badenoch mocked the late reversal, saying the Chancellor was “rushing her plans because she just realised when winter is”.
Despite the change in tone, the government has not yet revealed exactly how the new system will work.
Options include a broader means test or a claims-based system for middle-income pensioners. Clawing back payments through the tax system for wealthier recipients is also on the table.
But it’s clear Labour is saying a return to the universal model is off the cards.
Downing Street has promised to provide full details “as soon as we can”—but with payments due in November, the clock is ticking.
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