Labour trying to 'head off a rebellion' with Winter Fuel Payment 'U-turn'

Talks in No10 about abandoning or modifying the policy have reportedly accelerated this week.

Under the current policy, Winter Fuel Payments are means-tested, with eligibility restricted to those born before September 23, 1958, who are claiming Income Support, Jobseeker's Allowance, Employment and Support Allowance, or Pension Credit.

Chancellor Rachel Reeves announced the changes last July as part of the government's efforts to plug what she described as a £22bn "black hole" in the nation's finances.

Political commentator Jennifer Powers told GB News: "It was £1.4billion in savings that the Government was aiming for with the policy when it was introduced last July. It was one of the Government’s early announcements, made within three weeks of the election.

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"Immediately, there was backlash and as you mentioned, that hasn’t gone away. It came up quite a lot on the doorstep during the local election campaign.

"So it’s one of the factors in play as the government considers whether to water down the eligibility criteria perhaps making it available to more pensioners than is currently the case.

"I think it’s part of a bigger picture, though. The government is planning the largest welfare reforms in a decade, primarily focused on adult disability benefits specifically, Personal Independence Payments (PIP). They're looking to save around £6.5 billion, which is a significant amount.

"That issue is now coming to a head in Parliament, and despite the government’s large majority, it’s facing the possibility of its first defeat in the Commons over this. So there are a lot of moving parts. The question is: what can the government do to head off a rebellion?

"Perhaps they could make changes to the disability payments, but they still need to find those savings. And what about the winter fuel allowance? Could they adjust the eligibility threshold? At this stage, everything is up for discussion."

The cuts meant 10 million fewer pensioners are now eligible for the scheme, which provides payments of up to £300.

There has been widespread opposition to the policy from organisations including Age UK and Labour-backing union Unite.

According to the Financial Times, ministers are drawing up plans for a partial U-turn over the policy after it was widely blamed for Labour's reversals in this month's local elections.

While a complete reversal of the policy is being discussed, sources indicate this is "extremely unlikely to be agreed" despite the political pressure.

Sir Keir Starmer did not deny that changes were being considered when questioned about the reports.