This article is from the source 'bbc' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.bbc.com/news/articles/c79e0qq3r31o

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
Ed Miliband defends winter fuel payment U-turn Keir Starmer denies bowing to political pressure on winter fuel payments
(about 2 hours later)
Energy Secretary Ed Miliband has defended Chancellor Rachel Reeves' original decision to cut winter fuel payments and the subsequent partial U-turn. Sir Keir Starmer has denied his government's U-turn on winter fuel payments was a result of political pressure, instead arguing it was possible because of an improved economy.
He told the BBC the chancellor would not apologise for withdrawing the payment from more than 10 million pensioners last year, arguing that she had to take measures to stabilise the economy. Speaking to Jeremy Vine on BBC Radio 2, the prime minister defended last year's decision to withdraw the payments from all but the poorest pensioners, saying that he had to take "difficult" action to fix the UK's "broken" finances.
He said the decisions she had taken last year had created "room for manoeuvre" enabling her to extend the payment to more pensioners this coming winter. He said "better growth" in the UK meant he could now extend the payment, worth up to £300 a year, to more pensioners this coming winter.
Miliband said the move would cost "a relatively small amount of money" and would be accounted for in the Budget but the Conservatives said ministers did not know how it would be funded. Although the country's economic growth was better than expected in the first quarter of 2025, analysts expect it to slow in the coming months.
Last July, the government announced it would be withdrawing the payment, worth up to £300 per year, from more than 10 million pensioners. Last July, the government announced it would be taking away the payments from more than 10 million pensioners.
It meant that last winter only those receiving pension credit or another means-tested benefit would be eligible - an estimated 1.5 million individuals. It meant that last winter only those receiving pension credit or another means-tested benefit were eligible - an estimated 1.5 million individuals.
However, following pressure from charities, unions and its own backbenchers, the Labour government announced it would partially reverse that decision, expanding eligibility to more than three-quarters of pensioners. However, following pressure from charities, unions and the party's own backbench MPs, the Labour government announced it would partially reverse that decision, expanding eligibility to more than three-quarters of pensioners.
Under the revised policy, nine million pensioners in England and Wales with an annual income of £35,000 or less will receive the payment this winter. Under the revised policy, nine million pensioners in England and Wales with an annual income of £35,000 or less will get the payment this winter.
Asked if the government would apologise, Miliband said Reeves had not wanted to make the original cut, but had to act to stop the economy "going off a cliff". Asked if he had panicked following political pressure, Sir Keir said "no" adding: "I knew the decision we were taking in autumn of last year and why we had to take it."
He argued that since last summer, the nation's finances had stabilised and the government had "heard the strength of feeling" from voters. "The economy was broken, we discovered a £22bn black hole. To be honest with you, I had to take a decision in that Budget which was - do we ignore the big hole or do we actually deal with," he said.
He said the government was "sticking by the principle" that the wealthiest pensioners should not get the payment, but it was right to expand the numbers who would receive it and that Reeves deserved "credit" for the change. "I thought the right thing to do was to deal with it - that meant tough decisions."
Pressed on how the government would pay for the change, which is expected to cost around £1.25bn, Miliband said the details would be set out in the autumn Budget. He said better-than-expected growth figures, falling interest rates and trade deals with the US, India and the EU meant the government was able to increase the eligibility threshold for the payment.
The government has argued that the change would "not lead to permanent additional borrowing" due to an improving economy. Earlier Energy Secretary Ed Miliband told the BBC Chancellor Rachel Reeves would not apologise for decisions she took in last year's Budget and argued she deserved "credit" for listening to "the strength of feeling" from voters.
However, although economic growth was better than expected in the first quarter of 2025, analysts expect it to slow in the coming months. Pressed on how the government would pay for the change, which is expected to cost around £1.25bn, Miliband said it was a "a relatively small amount of money" and could be accommodated, with details to be set out in the autumn Budget.
The Conservative shadow chancellor Mel Stride said there was "no justification for leaving pensioners in the cold last winter". The government has said the change would "not lead to permanent additional borrowing".
Conservative shadow chancellor Mel Stride said there was "no justification for leaving pensioners in the cold last winter".
He said Labour had already spent savings from the original cut on "inflation-busting pay deals for the unions" and that the chancellor did not know how she would pay for the U-turn.He said Labour had already spent savings from the original cut on "inflation-busting pay deals for the unions" and that the chancellor did not know how she would pay for the U-turn.
Liberal Democrat leader Sir Ed Davey said: "Countless pensioners were forced to choose between heating and eating all whilst the government buried its head in the sand for months on end, ignoring those who were really suffering."Liberal Democrat leader Sir Ed Davey said: "Countless pensioners were forced to choose between heating and eating all whilst the government buried its head in the sand for months on end, ignoring those who were really suffering."
However, Paul Johnson, head of the Institute for Fiscal Studies think tank, said extending the winter fuel payment "wouldn't be in the top 100 things" he would do if he had £1.25bn to reduce poverty.However, Paul Johnson, head of the Institute for Fiscal Studies think tank, said extending the winter fuel payment "wouldn't be in the top 100 things" he would do if he had £1.25bn to reduce poverty.
"Almost none of the people impacted by this will be in poverty - most of them will be at least as well off as the average in the population," he told BBC Radio 4 PM programme."Almost none of the people impacted by this will be in poverty - most of them will be at least as well off as the average in the population," he told BBC Radio 4 PM programme.
"We know that poverty is much worse among families with children than it is with pensioners, and of course the poorest pensioners are already getting this.""We know that poverty is much worse among families with children than it is with pensioners, and of course the poorest pensioners are already getting this."
The Resolution Foundation said the U-turn would create "new complexity" in the tax system and that any savings from the policy would be eaten up by the administrative cost of means-testing the payment.The Resolution Foundation said the U-turn would create "new complexity" in the tax system and that any savings from the policy would be eaten up by the administrative cost of means-testing the payment.
The government said no one would need to register with HMRC or take any further action to receive payments, and pensioners who want to opt out will be able to do so through a system set to be developed.The government said no one would need to register with HMRC or take any further action to receive payments, and pensioners who want to opt out will be able to do so through a system set to be developed.
On Monday, Labour backbenchers broadly welcomed the U-turn but renewed their calls for the government to rethink other cuts, including changes to disability payments.On Monday, Labour backbenchers broadly welcomed the U-turn but renewed their calls for the government to rethink other cuts, including changes to disability payments.
Asked if she would reconsider the benefit cuts, Reeves argued the current system was "not sustainable".Asked if she would reconsider the benefit cuts, Reeves argued the current system was "not sustainable".
She said the government would "always protect those that can't work" but added "more needs to be done to fulfil the ambitions of people with disabilities themselves to get back in to work".She said the government would "always protect those that can't work" but added "more needs to be done to fulfil the ambitions of people with disabilities themselves to get back in to work".
Other Labour MPs have urged the government to scrap the two-child benefit cap, introduced under the previous Conservative government, which prevents most parents from claiming means-tested benefits for any third or additional children born after April 2017.Other Labour MPs have urged the government to scrap the two-child benefit cap, introduced under the previous Conservative government, which prevents most parents from claiming means-tested benefits for any third or additional children born after April 2017.
Pressed on the subject during a visit to Suffolk, Prime Minister Sir Keir Starmer said his government would be setting out its strategy on child poverty "later in the year".Pressed on the subject during a visit to Suffolk, Prime Minister Sir Keir Starmer said his government would be setting out its strategy on child poverty "later in the year".