The Prime Minister has bowed to pressure and confirmed a u-turn on hated winter fuel payment means-testing.
The Prime Minister has confirmed that Labour has been forced into a humiliating climb-down over winter fuel payments. Following reports that a u-turn is coming, he has now told the House of Commons that the policy will be changed. Sir Keir said the Government would look at the threshold for the payments, which will mean more pensioners become eligible.
Asked by a Labour MP what measures he will take to help struggling pensioners, Sir Keir replied: “I recognise that people are still feeling the pressure of the cost of living crisis including pensioners. As the economy improves we want to make sure people feel those improvements in their lives go forward.”
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Labour faces fresh demands for winter fuel U-turn after devastating poll
Keir Starmer announces the u-turn (Image: Keir Starmer announces the u-turn)
Sir Keir said: “That is why we want to ensure that as we go forward, more pensioners are eligible for winter fuel payments.
“As you would expect, Mr Speaker, we will only make decisions we can afford. That is why we will look at that as part of a fiscal event.”
His comments suggest that some means-testing will remain. However more pensioners will become eligible for the payment, so that those on lower incomes now get it again.
Conservative leader Kemi Badenoch said Labour MPs who loyally backed the means-testing policy announced by Chancellor Rachel Reeves last year would now be furious because they had been made to look foolish.
More than nine million pensioners no longer receive payments of up to £300 as a result of means-testing, which means only people eligible for pension credit usually qualify for the benefit. The Government has admitted the policy will plunge 100,000 pensioners into poverty. Increasing the threshold at which payments are made would significantly cut this number even if wealthier pensioners continued to be excluded.
An analysis of this month’s local elections by professor Sir John Curtice found Reform received 31% of the vote with Conservatives on 23%, Liberal Democrats on 17% and Labour on 14%.
Labour’s poor showing partly reflects the areas where voting took place, including county councils where Labour has traditionally performed badly, but it still marks a sharp decline from 2021 local elections held largely in the same places, when Labour gained 27% of the vote.
Some of Sir Keir’s MPs have publicly warned that winter fuel payment means-testing helped cause the defeat, while many more have expressed private concerns.
