Wed, 21 May 2025

Wed, 21 May 2025 Starmer announces U-turn on winter fuel payment cuts

The move follows political pressure in recent weeks after Labour losses at England's local elections.

* Sir Keir Starmer has announced plans to ease cuts to winter fuel payments, a U-turn following mounting pressure
* Over 10 million pensioners lost out on payments worth up to £300 when the policy was changed last year
* The threshold for eligibility will be changed to allow "more pensioners" to qualify again, but it's unclear how many will regain entitlement
* The change will be made at the autumn Budget, with ministers saying they will only make decisions that are affordable
* The original policy saved an estimated £1.4bn by restricting payments to those who qualify for pension credit and other income-related benefits
* Pressure to reverse the cuts has grown in recent weeks, with Labour MPs and councillors blaming the policy for losses at last month's local elections
* Former Labour prime minister Gordon Brown welcomed the U-turn, saying no pensioner should be forced into poverty
* Tory leader Kemi Badenoch called on the government to set out early details of their new approach, but said autumn's Budget would be too late to deliver changes this winter
* The income threshold for pension credit, currently £11,800 a year for individuals and £18,023 for pensioner couples, will need to be revised as part of the policy change
* Options for redesigning the system include linking it to lower council tax bands or expanding eligibility to those receiving housing or disability benefits.
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