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BBC News correspondent Kevin Peachey reports that changes are being made to the winter fuel payment scheme to widen eligibility. Chancellor Rachel Reeves has confirmed that more people will be able to receive the allowance starting this winter, although the exact details of the adjustments have not been revealed yet. This move comes after Prime Minister Sir Keir Starmer decided to expand the threshold for winter fuel payments, reversing one of Labour’s initial policies following their victory last year.
Last winter, only pensioners receiving pension credit were entitled to the payment, resulting in ten million fewer pensioners receiving the financial support. This decision faced criticism from various organizations and some Members of Parliament, as many individuals with slightly higher incomes were left without assistance despite high energy costs. Reeves emphasized that the means test will be broadened to include more individuals, ensuring that more pensioners will benefit from the winter fuel payment this coming winter.
Pensioners who qualify for the payment typically receive it automatically in either November or December. Despite discussions among MPs, Pensions Minister Torsten Bell ruled out reverting to the previous system where all 11.4 million pensioners received the payment. Sir Keir acknowledged the need for clarity on the new policy as soon as possible, but specific details may not be disclosed until the autumn Budget announcement. The government is exploring different options for implementing the changes, including the possibility of introducing a claims-based system or recovering payments from higher-income individuals through the tax system.
The decision to means-test the previously universal winter fuel payment was one of the initial measures taken by the government after Labour’s electoral success. The government defended this policy as crucial for stabilizing public finances, paving the way for economic improvements that could lead to a partial reversal of the decision. The upcoming spending review, scheduled for June 11, will provide further insights into the government’s budget allocations for various departments over the next few years. The review is expected to be challenging, with Reeves indicating that not all departments will receive the funding they requested, hinting at potential spending cuts as the government remains steadfast in avoiding borrowing for day-to-day expenses and implementing tax hikes
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