The UK government is actively considering changes to winter fuel payment cuts after widespread criticism and internal pressure from MPs. Chancellor Rachel Reeves and senior ministers are in discussions about whether to reverse or amend the controversial policy, which last year stripped more than nine million pensioners of payments worth up to £300.
Ministers are weighing options ahead of the June 11 spending review, where the Chancellor will set departmental budgets. Proposals on the table include adjusting the £11,500 income threshold for eligibility or restoring the payment to all pensioners. While a complete reversal remains unlikely, insiders say that the growing political fallout has pushed the policy back into review.
The review follows backlash from Labour MPs who blamed the cuts for the party’s poor performance in local elections and the Runcorn and Helsby by-election. Some MPs are urging the government to rethink the approach before it becomes a lasting political liability.
Chancellor signals openness to changes
In an interview with the BBC’s Newscast podcast, Reeves acknowledged public concern, saying the government was still listening. “I do understand the concerns people have,” she said, adding that any changes would require clear funding sources.
The shift in tone marks a significant departure from last September, when Reeves defended the cuts as fiscally responsible and aimed at supporting those in greatest need. She told Labour MPs at the time that “targeting the support was the right thing to do” amid stretched public finances.
Pressure builds from within Labour and beyond
Prime Minister Sir Keir Starmer has so far resisted calls to change course. However, at a private meeting on Monday, Labour MPs pressed him to reconsider. Stella Creasy MP told the BBC it would be “remiss” to dismiss concerns, noting that frustration was growing across both seasoned and new MPs.
The Liberal Democrats also criticised the government’s slow response. Treasury spokesperson Daisy Cooper said: “This U-turn is taking so long it puts turning an oil tanker around to shame… It punished some of the most vulnerable in our society.”
Payment cuts affected millions in cost-saving move
The winter fuel payment, introduced in 1997, was originally a universal allowance to help pensioners manage winter heating costs. It provides £200 for pensioners under 80 and £300 for those over 80, typically paid in November or December.
Last year, the government restricted eligibility to pensioners on pension credit or other means-tested benefits, a move intended to save £1.4 billion. The decision, which was not included in Labour’s election manifesto, has since become a flashpoint in debates about fairness and social support for older citizens.
This year, state pensions are set to rise by 4.1%, offering an annual boost of £363 for those on the basic rate and £472 for those receiving the new state pension. Still, critics argue that the rise does not compensate for the loss of winter fuel support for millions of households.
