Government U-turn on Winter Fuel Payments, Expands Eligibility for Pensioners

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Government Reverses Course on Winter Fuel Payments, Expands Eligibility for Pensioners

 

In a significant policy shift, Chancellor Rachel Reeves has announced that more than three-quarters of pensioners in England and Wales will now qualify for the winter fuel payment, following widespread criticism and political pressure. The reversal means that nine million pensioners earning £35,000 or less annually will be eligible for the payment, which is worth up to £300 and intended to help cover energy costs during the winter months.

 

Previously, the payment was restricted to those receiving pension credit, a limitation that was widely blamed for Labour's disappointing performance in recent local elections. Acknowledging the public backlash, Reeves stated, "We have listened to people's concerns." The Chancellor emphasized that the government’s improved fiscal management made the expansion possible, saying, "Because of changes we've made and the stability we've brought back to the economy, we are able to increase that amount."

 

Despite the government’s assertion that the new income threshold ensures "no lower or middle-income pensioners will miss out," critics have not held back. Conservative leader Kemi Badenoch derided the move as a "humiliating U-turn," highlighting the political pressure that led to the change.

 

The move comes just days before Reeves is set to unveil the government’s much-anticipated Spending Review on Wednesday. That review will set departmental budgets for the next three years and outline investment plans through to the end of the decade. Although the government signalled its intention last month to widen eligibility for the winter fuel payment, the absence of concrete details led to mounting speculation and criticism. This ambiguity threatened to overshadow the upcoming Spending Review, which Reeves has said will focus on fiscal discipline and targeted investment.

 

During a recent speech in Manchester where Reeves promoted a £15.6 billion funding package for local transport infrastructure, she was repeatedly pressed for clarification on the winter fuel policy. Though she confirmed changes would be in place for this winter, no specifics were offered at the time. Even as recently as Sunday, Science Secretary Peter Kyle was unable to provide further details, telling Sunday Morning with Trevor Phillips that the full eligibility criteria would be revealed "in the run up to the autumn."

 

While charities have largely welcomed the change in policy, they argue it falls short of what's truly needed. Simon Francis, coordinator of the End Fuel Poverty Coalition, praised Reeves for reversing the original decision, saying she had "seen sense." However, he also urged the government to "focus on how it supports all households in fuel poverty," not just pensioners.

 

One major question remains unanswered: how will the expanded benefit be funded? The financial implications of the new eligibility threshold are expected to be addressed in the autumn budget. Until then, concerns about funding and the overall strategy to combat fuel poverty will likely persist.

 

With the Spending Review looming, Whitehall insiders have warned that the budgeting process could become contentious. As one official reportedly put it, they expect the review to be "ugly." Nonetheless, the government hopes the revised winter fuel policy will ease financial pressures for millions of older Britons while shoring up its own political standing ahead of a challenging fiscal season.

 

  Adapted by ASEAN Now from BBC  2025-06-11

 

 

[BritManToo]

But they've still reduced the payments.

I used to get 250GBP or 500GBP winter fuel payment, depending on the number of pensioners living at the address.

Now it will be 100GBP or 200GBP, so less than 1/2.

 

No matter what Labour do now, pensioners won't be forgetting!