Ed Miliband risks ‘disproportionately burdening’ families with energy bills shake-up
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Winter Fuel Payments were means-tested by the Chancellor last year
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Prime Minister Keir Starmer has signalled potential changes to the controversial Winter Fuel Payment policy after facing months of fierce backlash.
Last year, Chancellor Rachel Reeves confirmed the up to £300 in energy bill support would now be reserved for older households in receipt of Pension Credit despite previously being a universal benefit.
It is understood that the Government is considering raising the current £11,500 income threshold that determines eligibility for the payments.
According to the i newspaper, discussions about modifying the approach have intensified in Downing Street this week amid growing concerns that voters will not forgive Labour for the cuts.
Speaking to reporters in Tirana, Starmer was asked three times whether he was considering changing the thresholds but did not rule it out.
Instead, he defended the original decision, saying: "Look, we took difficult decisions, but the right decisions, at the Budget, including the decision that we took on winter fuel.
"As a result of those decisions. I mean, they were taken specifically with the purpose of stabilising the economy. And I think we're seeing the evidence of that in the interest rate cuts and the growth figures."
Sources suggest Chancellor Rachel Reeves could announce changes next month in her spending review, which will take place on June 11.
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Simon Francis, the coordinator of the End Fuel Poverty Coalition, welcomed the potential policy shift but emphasised that "what matters now is the detail."
He shared: "Any u-turn is welcome, but what matters now is the detail, especially if Winter Fuel Payments are not restored to all pensioners.
"There are three tests we will apply to any announcement based on thresholds, tapers and wider targeting to see if ministers are getting the message.
"We need to see the Pension Credit threshold raised significantly, a taper system introduced to stop people missing out on Winter Fuel Payments for being just £1 over the line, and wider targeting of this support, including for those on non-means tested disability benefits or Carer's Allowance."
Francis also expressed concern about rumours that the Chancellor might "water down the Warm Homes Plan promised in the Labour manifesto and reduce the £13.2billion promised to it."
Money saving expert Martin Lewis has also weighed in on the potential changes, warning that more need to be addressed to tackle inequalites.
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Martin Lewis has spoke out about the rumoured U-turn
PALewis explained: "That'd be welcome but still doesn't fix the worst underlying problem... the means testing mechanism is flawed."
He highlighted that around 700,000 vulnerable pensioners with incomes under £11,500 still miss out on Winter Fuel Payments because they don't claim Pension Credit due to its "overly arduous process".
"Thus they miss out in both the important support that brings and on Winter Fuel Payments. That needs to change," Lewis added.