Chancellor Rachel Reeves has confirmed that winter fuel payments will be reinstated for more UK pensioners this winter, following weeks of backlash and policy uncertainty. The government is preparing to raise the £11,500 means test threshold, which previously excluded millions of pensioners from receiving the benefit.
Speaking during a visit to Rochdale, Reeves said the new payment criteria would be announced “as soon as we possibly can” and would be in place before winter. “The means test will increase and more people will get a winter fuel payment this winter,” she stated.
No Return to Universal Payments, Says Pensions Minister
While the chancellor promised expanded eligibility, Pensions Minister Torsten Bell ruled out a return to universal winter fuel payments, arguing it would be unfair for wealthier pensioners to receive the same benefit. Bell said that 95% of the public agree the system should not provide hundreds of pounds to millionaires, reinforcing that the policy shift would focus on fairness and targeted support.
Autumn Budget May Confirm Payment Threshold
Although the specific income threshold is still being determined, there are expectations that details may be revealed in next week’s spending review. However, Downing Street has stated that the autumn announcement will not be treated as a full fiscal event. The Treasury is reportedly exploring a model similar to that used by George Osborne in 2013, where higher-income recipients repay benefits via the tax system to avoid complex new means testing processes.
Labour Government Faces Internal Budget Pressures
Reeves acknowledged ongoing disputes between Treasury and key departments — including those led by Yvette Cooper, Ed Miliband, and Angela Rayner — over budget allocations ahead of the spending review. She stressed that not every department would receive their full requests and warned of tough decisions due to “14 years of Conservative maltreatment of our public services and economy.”
Fiscal Rules Non-Negotiable Despite Pressure
Amid scrutiny of Labour’s self-imposed fiscal rules, Reeves reiterated her commitment to maintaining balanced budgets and reducing debt by 2029–30. She pushed back against critics, referencing the economic fallout of Liz Truss’s 2022 mini-budget, and insisted that responsible financial management was essential to protect working families from rising interest rates and economic instability.
More Pensioners to Benefit from Revised Winter Fuel Policy
The government’s U-turn follows public and political pressure, as over 10 million pensioners had lost access to the winter fuel allowance under previous reforms. While universal reinstatement is off the table, the government aims to significantly expand eligibility ahead of the colder months.
