Ministers consider easing winter fuel payment cuts as pressure builds on the government over a deeply unpopular policy. Internal talks are underway to either adjust income thresholds or restore payments to all pensioners.
Chancellor Rachel Reeves cut eligibility last year, removing winter fuel payments worth up to £300 from over nine million pensioners. The move, designed to save £1.4 billion, limited payments to those on pension credit or related benefits. Efforts now to reconsider the cuts are being discussed.
Now, senior officials are debating whether to reverse or modify the policy before the 11 June spending review. Any changes could include raising the current £11,500 income cap. Alternatively, they might fully reinstate universal payments, as ministers deliberate over easing the restrictions.
While discussions are ongoing, no decision has been finalised. Sources say scrapping the policy entirely is unlikely. However, revising the income threshold is on the table, with some consideration toward easing winter fuel payment cuts.
The Ministers consider easing winter fuel payment cuts debate gained urgency after Labour’s losses in recent local elections. Some MPs believe the policy contributed to defeats, including the Runcorn and Helsby by-election.
Cabinet minister Pat McFadden said he had not been part of recent talks but admitted the issue had surfaced with voters. “Some decisions are more popular than others,” he acknowledged in a radio interview.
Reeves has maintained a cautious stance, stating the government inherited difficult finances and needed to make tough choices. However, she also said ministers are “listening” and open to public concerns, including those about winter payment cuts.
In contrast, last September Reeves urged Labour MPs to support the cut. She called it “the right thing to do” to focus funds on the most vulnerable. Her recent shift in tone suggests internal pressure may be forcing a rethink.
Prime Minister Keir Starmer’s team had earlier insisted the policy would remain unchanged. But on Monday, MPs raised concerns in a closed meeting with the Labour leader. This prompted fresh debate about ministers easing the winter fuel payment cuts.
Labour MP Stella Creasy said it would be “remiss” to ignore growing discontent. She emphasised that MPs across the party want the issue resolved fairly.
Critics outside Labour also weighed in. Lib Dem Treasury spokesperson Daisy Cooper mocked the government’s slow response. She said, “This U-turn is taking so long it puts turning an oil tanker around to shame.”
The winter fuel payment, introduced by New Labour in 1997, is a lump sum paid each winter to pensioners to help with heating bills. Last year, basic state pensions rose by 4.1%, offering some relief, but many say it’s not enough to offset higher living costs.
As ministers consider easing winter fuel payment cuts, millions of pensioners await clarity ahead of winter. Political fallout may force a policy shift, even if it wasn’t originally planned.
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