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Starmer announces U-turn on winter fuel payment cuts | Starmer announces U-turn on winter fuel payment cuts |
(about 1 hour later) | |
The cuts prompted protests from unions last year | |
Sir Keir Starmer has announced a U-turn on last year's controversial cuts to winter fuel payments. | Sir Keir Starmer has announced a U-turn on last year's controversial cuts to winter fuel payments. |
More than nine million pensioners lost out on the payments, worth up to £300, after eligibility for the pension top-up was tightened last year. | |
Speaking at Prime Minister's Questions, Sir Keir said ministers would look again at the threshold to allow "more pensioners" to qualify again. | Speaking at Prime Minister's Questions, Sir Keir said ministers would look again at the threshold to allow "more pensioners" to qualify again. |
He did not provide further details, adding that the changes would be made at a future Budget. | He did not provide further details, adding that the changes would be made at a future Budget. |
But he added the government would only "make decisions we can afford". | |
The winter fuel payment is a lump-sum amount of £200 a year for pensioners under 80, increasing to £300 for over-80s, paid in November or December. | The winter fuel payment is a lump-sum amount of £200 a year for pensioners under 80, increasing to £300 for over-80s, paid in November or December. |
Around nine million pensioners lost out on the payments last year after the government restricted them to those who qualify for pension credit and other income-related benefits, to save an estimated £1.4bn. | |
Some Labour MPs have blamed the policy for losses at last month's local elections, where the party lost around two-thirds of the seats it was defending. | |
The policy has also faced fierce criticism from pensioner charities, and has been opposed by all the main opposition parties at Westminster. | |
Downing Street ruled out changes earlier this month, but Chancellor Rachel Reeves hinted at a change in position earlier this week, saying she was listening to "concerns" about the policy. | |
Eligibility threshold | |
The income threshold to qualify for pension credit this year is £11,800 for individuals and £18,023 for pensioner couples. | |
Providing an alternative way to qualify for the payments could create administrative hurdles for ministers and officials. | |
Speaking to reporters on Wednesday, a spokesman for the prime minister was unable to say how many more pensioners would be eligible for the benefit under the U-turn. | |
And he declined to guarantee it would be in place this coming winter, but added: "We obviously want to deliver this as quickly as possible. | |
"We will only make decisions when we can say where the money is coming from, how we're going to pay for it and that it's affordable," he added. | |
The winter fuel payment was introduced in 1997 by New Labour as a universal payment for all pensioners. | |
It was billed as a way to guarantee they would be able to pay for increased heating costs over the winter - although in practice it is a pension top-up, which recipients can spend on whatever they want. | |
From 2010 onwards, the state pension gained additional protection under the "triple lock" policy - under which pensions go up each year by the highest of inflation, average earnings or 2.5%. | |
This year state pensions went up by 4.1% - a rise of £363 a year for those on the basic pension or £472 for those on the new pension. |