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Starmer announces U-turn on winter fuel payment cuts Keir 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 plans to ease cuts to winter fuel payments, in a U-turn following mounting political pressure in recent weeks.
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, when eligibility for the pension top-up was tightened last year.
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 change 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. But it remains unclear how many will regain their entitlement for the payments, or when the changes will take effect.
He did not provide further details, adding that the changes would be made at a future Budget. Sir Keir said the policy would be changed at the autumm Budget, adding ministers would only "make decisions we can afford".
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.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 move, announced shortly after Labour took office last July, has led to fierce criticism from unions and pensioner charities.
But pressure to change course has grown in recent weeks, with some Labour MPs and councillors blaming the policy for the party's losses at last month's local elections in parts of England.
Grumbling from MPs generally on the Labour left spread into the party more widely, and even MPs who defended the policy said it was the most frequently raised issue by members of the public.Grumbling from MPs generally on the Labour left spread into the party more widely, and even MPs who defended the policy said it was the most frequently raised issue by members of the public.
The policy has also faced fierce criticism from pensioner charities, and has been opposed by all the main opposition parties at Westminster. 'Longest U-turn'
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. The income threshold for pension credit, the main benefit to qualify to continue to receive winter fuel payments, is currently £11,800 for individuals and £18,023 for pensioner couples.
Tory leader Kemi Badenoch appeared to welcome the U-turn in the Commons, adding that restricting eligibility for the payments last year had "driven thousands into hardship". Designing a new eligiblity threshold will now present political and practical headaches for ministers ahead of the Budget in the autumn.
However, she later tweeted that the change was "too little, too late". Speaking to reporters, Tory leader Kemi Badenoch welcomed the "inevitable" U-turn, branding last year's changes a "cruel decision".
Liberal Democrat leader Sir Ed Davey also welcomed news that eligibility would be expanded, but pressed the prime minister to reverse the cuts "in full". She called on ministers to set out "early" details of their new approach, adding that waiting for autumn's Budget would be "too late" to ensure their changes are in place for next winter.
Eligibility threshold She did not specify where she wanted the new threshold to be set, but added she did not think that "millionaires" should qualify again.
The income threshold to qualify for pension credit this year is £11,800 for individuals and £18,023 for pensioner couples. Liberal Democrat leader Sir Ed Davey welcomed the "longest U-turn" from the government, and called for the cuts to be reserved "in full".
Providing an alternative way to qualify for the payments could create administrative hurdles for ministers and officials. Age UK, one of the charities opposing the cuts, welcomed the change in approach but said any new system should ensure pensioners on "low and modest incomes" would be able to keep the payments.
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. Triple lock
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. Asked by reporters when the changes would take effect, the prime minister's spokesman 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."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.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.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%.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.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.
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