Winter Fuel payments were cut just months into Labour’s government being formed
The payment can be a lifeline for many pensioners in Britain(Image: Getty Images)
More pensioners will receive Winter Fuel Payments of up to £300 later this year due to changes in the scheme announced earlier this week. The Labour government announced it had reversed its previous decision to cut the winter fuel allowance, which affected around 10 million pensioners, following backlash that some estimate cost them seats in the latest local elections.
While details on exact eligibility are still pending confirmation from ministers, it appears that a full reversal of the policy, which would return payments to all pensioners, is unlikely. As a result, wealthier pensioners are expected not to receive the payments, as there is a consensus that they do not require this financial support, which could be reallocated to other areas.
Chancellor Rachel Reeves is expected to provide further information during next week’s spending review. Ms. Reeves has confirmed that adjustments to the scheme will be implemented in time for this winter to ensure that more pensioners receive support.
Last year, the Government faced significant criticism for its approach to determining eligibility for winter payments, which left many lower-income individuals without assistance. Reported by Birmingham Live, the Chancellor stated that people “should be in no doubt that the means test will increase and more people will receive Winter Fuel Payments this winter.”
Pensions Minister Torsten Bell has effectively ruled out restoring universal payments, stating, “It’s not a good idea to pay hundreds of pounds to millionaires, and we will not continue with that.” However, the specific cut-off point for eligibility remains unclear, with speculation suggesting it could be linked to council tax bands.
Speaking to the BBC’s Today programme earlier this week, Prime Minister Keir Starmer reiterated that ministers were reviewing methods of determining which pensioners should receive the payment, but added he wanted to be “absolutely clear where the money is coming from” before setting out the details.
After coming to power in July last year, the Labour government announced it was withdrawing the annual payment, worth up to £300, from more than 10 million pensioners. It meant that elderly brits who claimed pension credit would be the only ones eligible for the payment, instead of it being a universally-awarded benefit. Some point out that since it was universal, pensioners who had plenty of money were being offered the same amount as those who were some of the poorest.
The decision to means-test the benefit instead of blanket restricting it across pensioners has been heralded as a step in the right direction, but the uncertainty around the payment impacted politicians as well as pensioners. Labour’s losses in the recent local elections saw Winter Fuel Payments as a focal issue among voters.