London - British Prime Minister Keir Starmer suggested on Wednesday that a hugely unpopular measure depriving millions of retirees of annual winter fuel subsidies was a surprising policy reversal.
Starmer said he wanted to help people pay for living costs, adding that he hopes more retirees are eligible for so-called winter fuel payments. He spoke during weekly inquiries in the House of Commons after releasing the figures showing the highest level of inflation for more than a year.
“As the economy improves, we want to make sure people feel these improvements,” he said. “That’s why we want to make sure we move forward and more pensioners are eligible for winter fuel.”
Shortly after Labor came to power last July, Treasury Secretary Rachel Reeves removed winter fuel allowances each year, worth between 200 and 300 pounds ($266 and $399), and all but the poorest retirees believed the measure was needed due to the public financial situation left by the previous Conservative government.
Since its election, this move can be said to have caused a rapid decline in popularity of the Starmer administration. Labor was underperformed in local elections in England earlier this month, with many party representatives accusing the cancellation of winter fuel payments.
Since then, there has been increasing speculation that the government will change the nail by eliminating measures or increasing the level of payment allowances.
Starmer told lawmakers that the decision will be made “as part of fiscal activities.” It is unclear whether this is on June 11, Reeves outlines the government spending plans for the next three years or in the next budget in the fall.
During a exchange in the House of Commons on Wednesday, chief opposition Conservative leader Kemi Badenoch asked the public how to "confidence forever" Starmer after the "inevitability of turning around" in the winter fuel payments.
Starmer seems to justify the change with economic reasons and said expectations for borrowing costs and trade deals with the EU, India and the United States are higher than growth in the first quarter, reducing trade deals for the three.
"Just because the measures we are taking are the economy improving, growing at the highest rate in the G7, four lower interest rates, three trade deals, because the country wants to trade with the country due to the decisions we make."