CliffNotes
- Starmer U-turns on winter fuel payments cut
- It comes after weeks of political pressure
- More than 10 million pensioners lost the payment last year
Starmer U-turns on winter fuel payments cut
What Happened
Sir Keir Starmer has announced a U-turn on winter fuel payment cuts, following weeks of political pressure.
More than 10 million pensioners lost the payment — worth up to £300 — after Labour made it means-tested last year to save £1.4bn. The changes meant only those receiving pension credit or other income-related benefits remained eligible.
Sir Keir now says the eligibility threshold will be changed, so that “more pensioners” qualify again.
What’s Been Said
Starmer told MPs at Prime Minister’s Questions that:
“We will only make decisions we can afford.”
He confirmed changes would be made in the autumn Budget.
The exact number of pensioners affected and when the new rules will apply is still unclear.
Labour faced backlash from unions, pensioner charities, and its own MPs — some of whom blamed the cuts for the party’s local election losses.
Former PM Gordon Brown, who introduced the original scheme, said Starmer was “right” to reconsider.
Opposition leaders reacted quickly:
- Kemi Badenoch (Tory leader) welcomed the “inevitable” U-turn but demanded early detail, arguing autumn would be too late for this winter.
- Sir Ed Davey (Liberal Democrats) dubbed it the “longest U-turn” and called for a full reversal of the cuts.
What Next
Designing a new eligibility system is expected to be politically tricky and expensive.
The current income threshold for pension credit is £11,800 (individuals) or £18,023 (couples). Options being discussed include:
- Linking eligibility to council tax bands
- Including those receiving housing or disability benefits
- Expanding access to pension credit
The Resolution Foundation warned that even a modest expansion could cost £2.5bn – more than the original savings.
Age UK welcomed the change but said the new system must support those on “low and modest incomes.”
Downing Street has not confirmed whether the changes will take effect this winter, stating:
“We obviously want to deliver this as quickly as possible… but we will only make decisions when we can say where the money is coming from.”
