Ministers consider reducing winter fuel payments

Senior government figures are discussing whether to reverse the controversial decision to reduce winter fuel payments for millions of pensioners over the past few weeks.

More than 9 million retirees lost £300 worth of payments after Prime Minister Rachel Reeves restricted their pension recharge eligibility last year.

Government discussions include changing the threshold for pensioners to stop earnings, or resuming payments to all pensioners.

Negotiations were considered fluent and no conclusions have been drawn.

The government may ultimately decide to stick to its existing policies.

Any announcement can be released immediately after the June 11 expenditure review, when the Prime Minister will launch the government department's budget in the coming years.

It has been reported that the government is considering whether to increase the £11,500 income threshold and retirees are no longer eligible for stipends.

Some Labor MPs blamed winter fuel policies on last month’s local elections and the winter fuel policies of the Renkorn and Hullsby by-elections.

Compared to adjusting the threshold, a complete abandonment of policies is considered entirely as a result.

But the policy - one of the first decisions made by Labor last summer when he took office - even in the review showed the scale of the focus on its political impact by Prime Minister Sir Keir Starmer's team.

Cabinet Minister Pat McFadden was asked in BBC Radio 5 Live if he was considering changing the course: "I can't say nothing about it. When the budget agrees, they reached an agreement in a round."

"I'm not involved in the recent cabinet discussions," he said.

He added that payments for winter fuel did “climb the doorstep” and admitted that “some decisions are more popular than others”.

In an interview with the BBC's news broadcast podcast on Monday, Reeves did not rule out a course that changed the winter fuel.

Reeves said the administration faced a “hard legacy” and took some “hard decisions” to stabilize public finances after winning last year’s election.

But she added: “I do understand people’s concerns.”

She said she will "continue to listen to concerns raised by people."

"We are the government of hearing," the prime minister said.

"But if we are going to make any policy changes, we always need to show where the money will come from. It will be part of the normal process."

Her comments have marked a change in tone since Reeves urged Labor MPs to support plans to reduce winter fuel payments last September.

During the Labor Parliament meeting that month, Reeves told the Labor backbencher: “It’s the right choice, aim at money when finances are extended, and this is the one who needs them the most.”

Earlier this month, a spokesman for Prime Minister Sir Kyle Starmer told reporters that the policy of winter fuel payments “will not change government policies” despite the workforce adding calls to the reconsidered workforce.

Some MPs raised questions about payments when they roasted Sir Kyle at a meeting in Parliament on Monday.

Labor MP Stella Creasy said in a speech by the BBC ahead of the meeting that refuting concerns about winter fuel payments would be a "revocation" from the government.

"These issues are heard throughout the party," Creasy said.

“Those of us have been there for a long time, and among the new MPs, there is a real focus to do that, and now that’s the response the government needs to make.”

Liberal Democrats say whether the Prime Minister has heard of it.

"This turnaround took so long that it turned the tanker into shame," said Daisy Cooper, a spokesman for Lib Demeasury.

“The government should be embarrassed because it has taken a horrible set of local election results to realize what everyone knows from the beginning: This policy is doomed to fail and punish some of the most vulnerable.”

Winter fuel payments are a one-time £200 per year for pensioners, with pension payments under 80 at £80 and £300 in November or December.

Last year, the government limited payments to those eligible for pension credit and other income-related benefits to save £1.4 billion.

The move was not in the Labor Party’s general election manifesto.

This is seen as a key issue in this month’s local elections, where Labour lost 187 seats in the council and controlled the sole council.

In 1997, the new labor made winter fuel payments a common payment for all pensioners.

It's called a way to ensure they can pay for the added heating costs throughout the winter - despite being a pension top-up, recipients can spend on anything they want.

State pensions have increased by 4.1% this year - people with basic pensions have increased by £363 a year, while new pensions have been paid at £472.