Sir Keir Starmer has confirmed the government will reconsider its decision to means test winter fuel payments for pensioners, following widespread criticism. The prime minister indicated that more pensioners could become eligible for the benefit as part of a forthcoming fiscal event later this year.
The move comes after Labour’s initial policy last year to restrict the payments to pensioners receiving certain income-related benefits sparked significant public and political opposition.
This change, which removed the allowance from around 10 million pensioners, was widely seen as a source of hardship during a cost of living crisis that has disproportionately affected older people.
Background and Impact of the Winter Fuel Payment Changes
Winter fuel payments are annual, tax-free allowances ranging from £100 to £300 designed to help pensioners cover heating costs during colder months. Traditionally, these payments were provided universally to pensioners above a certain age.
However, in July 2024, the government introduced means testing, limiting eligibility to those receiving Pension Credit or other qualifying benefits. According to official figures, this policy shift reduced recipients from approximately 10.8 million to just 1.5 million pensioners.
The decision drew sharp criticism from campaigners, opposition parties, and many Labour backbenchers. Age UK highlighted the potential health risks, warning that some pensioners had already been cutting back on heating to unsafe levels.
Public polls showed substantial disapproval, particularly among older voters. This backlash was linked to poor local election results for Labour and contributed to internal party unease, with over 170 MPs expressing concern over the cuts.
Government’s Response and Future Plans
At Prime Minister’s Questions, Sir Keir Starmer acknowledged the ongoing pressures of the cost of living crisis on pensioners and stated the government’s intention to expand eligibility for winter fuel payments. He emphasised that any changes would need to be affordable and would be announced at a scheduled fiscal event, likely the autumn budget.
Labour sources indicate that the Treasury will review the eligibility threshold, currently set at an income limit of approximately £11,500. Ministers aim to balance extending support with managing public finances responsibly.
The prime minister’s announcement was seen as a strategic response to public opinion and political pressure, with some commentators describing it as a necessary course correction after the policy damaged Labour’s standing with older voters.
Opposition politicians have urged the government to restore the payments fully and promptly, warning that delays risk further hardship for vulnerable pensioners. Meanwhile, suggestions have been made to create an additional fund to assist pensioners with energy costs during peak periods.
