Sir Keir Starmer has confirmed the Government will revisit its decision to scrap winter fuel payments for millions of pensioners, following widespread public outcry.
Speaking in the House of Commons, the Prime Minister said ministers will look to expand eligibility for the benefit, which helps older people cover heating costs during the colder months.
It comes after Labour scrapped the payments for 10 million pensioners, sparking a furious backlash.
He said: "I recognise that people are still feeling the pressure of the cost of living crisis including pensioners and as the economy improves we want to make sure people feel those improvements in their days as their lives go forward and that is why we want to ensure that as we go forward more pensioners are eligible for winter fuel payments."
Starmer stopped short of confirming an immediate change, but made clear that the issue would be addressed in the Government’s next fiscal event, expected later this year. "As you would expect, we will only make decisions we can afford," he said.
Keir Starmer announces winter fuel allowance U-turn as PM sets date for major changeThe winter fuel payment is a tax-free allowance of between £100 and £300, paid annually to help older households manage heating bills during colder months.
For many pensioners on fixed incomes, it provides a critical cushion against high energy costs especially following recent rises in utility bills.
Under the means-tested approach, introduced as part of wider welfare reforms, eligibility was removed from millions of households who had previously received the payment automatically. Many only discovered the change after they stopped receiving letters or payments in the post.
Labour's move to restrict eligibility had drawn sharp criticism from campaigners and opposition MPs, with some branding it a stealth tax on the elderly.
Pensioners are distressed about recent changes to the Winter Fuel Payment allowance GETTY Dr Carole Easton OBE, chief executive at the centre for Ageing Better, said: "The Centre for Ageing Better welcomes the Prime Minister’s decision to look again at the restrictive eligibility imposed by his government on the Winter Fuel Payments scheme. We hope that it will lead to more pensioners receiving support this winter to keep their homes warm in order to protect their health.
"Our own research has shown that more than 2.5 million pensioners, living on incomes insufficient to support a dignified standard of living, were stripped of their Winter Fuel Payments by government changes brought in last year.
"As a charity we recognise there is a case to be made for removing this universal right from pensioners who don’t need a Winter Fuel Payment. But the government went too far in restricting the payments to people eligible for Pension Credit which ultimately meant removing support from people who desperately need it.
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MPs voted to means-test the Winter Fuel Payment in September GB NEWS"This was a poor decision on a human level, creating an avoidable crisis by removing a valued support away from millions. But it was also a poor decision on a financial level as the savings made from reducing the number of payments were likely to be undone by the increased pressures on health services from older people living in homes they couldn’t afford to heat to an adequate level."
Insiders also say the Treasury will now conduct a review of the payment’s structure to assess how eligibility could be widened without blowing a hole in the public finances.
Some MPs have urged the Government to restore the payment in full before the winter, warning that delays could lead to further hardship.
Others have called for the creation of a separate "energy cost resilience fund" targeted at pensioners during peak price periods.
Further details on the expansion are expected at the next fiscal event.
