Prime Minister Keir Starmer has confirmed he wants to expand eligibility for winter fuel payments, softening a controversial means-testing policy that has sparked a Labour backbench rebellion and contributed to a decline in public support. Speaking at Prime Minister's Questions, Starmer acknowledged the cost of living pressures on pensioners and said the government would review the £11,500 income threshold that disqualifies many from the allowance.
The reversal follows widespread criticism of the decision, announced by Chancellor Rachel Reeves last July, to cut £1.5 billion in universal payments and limit them to pensioners receiving pension credit. The policy has been blamed for Labour's poor performance in recent local elections, with activists reporting it as a recurring issue on the doorstep.
Starmer indicated that any changes would be part of the upcoming autumn budget, but Downing Street could not confirm whether they would take effect this winter or how many of the 10 million pensioners affected would regain eligibility. The government maintains the original cut was necessary to stabilise public finances, but now cites improving economic conditions—including growth and interest rate cuts—as enabling a partial reversal.
Welfare and Pensions Secretary Liz Kendall defended the broader welfare reform agenda, including tightening personal independence payment eligibility, arguing it is essential to combat the rise of populist politics. She acknowledged the difficulty of such reforms but insisted the government must take tough decisions to ensure the welfare system's sustainability.
Age UK welcomed the prime minister's commitment but cautioned that details remain crucial. The charity's director, Caroline Abrahams, said they would postpone judgment until more information is available. Officials face challenges in widening eligibility without increasing pension credit take-up, which could negate any savings.
