Prime Minister Keir Starmer has announced a major U-turn on winter fuel allowance eligibility following a rebellion from within the Labour Party and disastrous polling figures. The government now plans to expand the scheme, which was slashed early in Starmer’s premiership—affecting nine million pensioners.
Key Points:
- More pensioners will become eligible for winter fuel allowance as Starmer promises to reverse earlier cuts.
- Final details will be confirmed in the Autumn Budget 2025—raising doubts over whether changes will apply this winter.
- Labour MPs, unions, and opposition leaders have condemned the cuts, citing the cost-of-living crisis.
- Angela Rayner has reportedly pushed for new tax rises to fund expanded support.
- A new poll shows Reform UK eight points ahead of Labour.
Background: The Cut That Sparked Outrage
After forming a government in 2024, Labour limited the winter fuel allowance to those on Pension Credit, down from over 11 million recipients to just 1.5 million. The move was justified as a cost-saving measure but quickly drew fire from pensioner advocacy groups and voters alike.
Labour insiders have reportedly been pressing for a reversal as the policy was seen as a major factor in the party’s declining popularity. A recent poll showed Reform UK ahead of Labour by eight points—a seismic shift in UK politics.
Starmer’s Announcement in PMQs
Speaking during Prime Minister’s Questions on Wednesday, Starmer defended the decision but confirmed expanded eligibility would return.
As the economy improves, we want to ensure more pensioners are eligible for winter fuel payments," Starmer told the Commons.
The full policy change will be included in a “fiscal event”, likely the Autumn Budget. However, Downing Street did not confirm whether any changes would take effect before winter 2025/26.
Political Reactions
- Kemi Badenoch (Conservatives): “The U-turn was inevitable. He [Starmer] is desperate.”
- Ed Davey (Lib Dems): Pressed Starmer on whether the policy would be reversed in full.
- Labour backbenchers: Called for total restoration of the universal allowance.
- Public backlash: Many took to X (formerly Twitter) to criticise the initial policy as “cruel” and “economically short-sighted.
Behind the Scenes: Rachel Reeves and Angela Rayner’s Clash
Reports suggest Deputy PM Angela Rayner submitted proposals to Chancellor Rachel Reeves ahead of the Spring Statement suggesting up to eight new tax increases to fund welfare.
These included:
- Reinstating the pensions lifetime allowance.
- Raising taxes on dividends and additional rate taxpayers.
- Imposing higher corporation tax for banks.
Though not adopted, the leaks indicate growing friction within Labour’s top ranks on how to balance welfare support and fiscal discipline.
Looking Ahead: Will It Come in Time?
With no confirmation yet on implementation, many fear the most vulnerable may face another harsh winter without support.
The Prime Minister’s spokesperson said:
"We obviously want to deliver this as quickly as possible… but it must be affordable and fully funded."
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