Speaking at PMQs, Keir Starmer said he wants more pensioners to be eligible for winter fuel payments and told MPs thresholds are being looked at
PMQs: Starmer admits he wants to ensure more pensioners get winter fuel payments
Keir Starmer confirmed he will U-turn on controversial cuts to winter fuel payments that have hit Labour at the ballot box.
The PM said with the economy showing signs of improvement he wanted to ensure “more pensioners are eligible for winter fuel payments”. The reversal came amid mounting pressure to roll-back the decision to strip the £300 payment from all but the very poorest pensioners.
Labour has argued the unpopular decision – announced just weeks after the party’s election victory last year – was necessary to fix the Tory mess they inherited. But speaking at PMQs, Mr Starmer said: “We all know the economy was left in absolute mess by the Tories.
“We had to stabilise the economy with tough decisions but the right decisions. Because of those decisions it is beginning to improve.” He added: “I recognise people are still feeling the pressure of the cost of living crisis including pensioners, and as the economy improves we want to make sure people feel those improvements as their lives go forward.
“That is why we want to ensure as we go forward more pensioners are eligible for winter fuel payments. As you would expect we will only make sure we make decisions we can afford. That is why we will look at that as part of a fiscal event.”
READ MORE: Criminal probes into water firms hit record high as Tory record blasted
Less than a fortnight ago No10 ruled out a change in policy despite a bruising at the local elections and defeat to Reform UK at a key by-election. But in recent days speculation mounted over a possible change in direction.
Chancellor Rachel Reeves, who announced the cut last year, said she was “listening” to concerns over the policy on Monday. Finding a mechanism to widen eligibility will cause headaches in Whitehall after the decision to link the payment to the pension credit threshold of £11,500.
Details are expected to be hammered out ahead of the Autumn Budget. But it will mean pensioners are forced to wait many months before finding out if they are once again eligible for the payment this winter.
The Resolution Foundation think-tank said ministers could extend the winter fuel payment to 1.3million more pensioners at a cost of £300million. Chief Executive Ruth Curtice said: “The Government’s partial U-turn on Winter Fuel Payments may be welcomed by pensioners but it leaves huge questions about how support can be extended, and who will get it.
“A sensible way forward would be to extend support to pensioners receiving housing and disability benefits, as well as Pension Credit. This is affordable at £300 million and would benefit more than a million families.”
Responding to the PM’s comments the Director of the Silver Voices campaign group said: “Victory is in sight for our campaign to restore the winter fuel cuts but the PM’s statement in Parliament today failed to indicate a complete reversal of the policy.
He added: “Fiddling around the margins of pension credit eligibility will not cut the mustard for the millions of older people who struggled last winter.
“The winter fuel policy has become the symbol of how the Labour Government has lost its way, so to regain trust with the voters Sir Keir needs to be bold and honest. Admit the mistake and reverse the policy!”
Caroline Abrahams, charity director at Age UK said: “We welcome the PM’s comments and his commitment to change, but of course the devil is always in the detail and we postpone judgement until we hear more.”
The left-wing MP John Trickett added: “The winter fuel cuts were a major error. They ought to be reversed in total now.” Labour MPs have also seen urging the government to change course on controversial cuts to welfare announced earlier this year.
But in a major speech Liz Kendall stood firmly by the reforms. The Work and Pensions Secretary defended plans to restrict eligibility for Personal Independence Payment (PIP) – a key disability benefit.
A government analysis suggested the cuts – totalling £5billion – will lead to an extra 250,000 people in poverty, including 50,000 children. Some 100 Labour MPs – more than a quarter of the party’s parliamentary numbers – have signed a letter urging ministers to scale back welfare cuts.
In her speech, Ms Kendall, who said she was “listening” to colleagues’ concerns, claimed the reform “will help ensure our welfare state is sustainable for the future”. But making clear she will not back down, the Cabinet minister said: “We must start shifting so much spending on the costs of failure to investing in the jobs, skills and public services that people need to build a better life.
“And this requires leadership, and it requires reform. Now the truth is welfare reform is never easy, and it is rarely popular. Perhaps especially for Labour governments.” She added: “But no responsible Labour government can resile from taking decisions because they are too difficult. Because this is not good enough for the people we came into politics to serve. So, we will reform the welfare state”.