The winter fuel payment U-turn will restore support for millions of pensioners, but Prime Minister Keir Starmer denies political pressure forced the reversal.
Starmer defended last year’s controversial cut, which limited payments only to the poorest pensioners. In light of the U-turn decision, he claimed stronger economic growth now allows expanded eligibility for winter fuel payments.
Last July, the government restricted winter fuel payments to just 1.5 million low-income pensioners. Now, around nine million with incomes under £35,000 will qualify.
The U-turn has also reignited debates over long-term pensioner support, with critics arguing the policy lacks consistency. While ministers stress the need for fiscal responsibility, campaigners warn that fluctuating eligibility creates uncertainty for vulnerable households depending on the winter fuel U-turn policy. As energy prices remain, the government faces mounting pressure to establish a more sustainable approach to winter welfare support.
Starmer insisted the initial cut was necessary to fix a £22bn budget shortfall. However, improved growth, trade deals, and falling interest rates enabled the reversal of the winter fuel payment policy.
Charities, unions, and Labour MPs fiercely criticized the original decision. The payment policy reversal followed months of pressure, but concerning the winter fuel payment U-turn, Starmer denied panicking.
Energy Secretary Ed Miliband credited Chancellor Rachel Reeves for listening to public concern regarding the U-turn of the winter fuel payment decision. The expansion will cost £1.25bn.
Tories accused Labour of hypocrisy. Shadow Work Secretary Helen Whately said economic conditions have worsened, not improved.
Lib Dems demanded backdated payments, while economists questioned targeting pensioners over poorer families. The winter fuel payment U-turn raised questions as the IFS argued child poverty should take priority.
Eligible pensioners need not apply—payments will be automatic. A new opt-out system is in development. Meanwhile, Labour faces calls to reverse other cuts, including disability benefits and the two-child cap. Starmer promised a child poverty plan “later this year.”
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