Exclusive:
The Government is facing pressure from all sides to drop its plan to axe the annual payment for all but the poorest elderly people as the Chancellor scrambles to fix the £22bn hole the Tories left in the public finances
Keir Starmer has ruled out changing the cut-off point for the winter fuel allowance as millions are poised to lose the lifeline payment.
The Government is facing pressure from all sides to drop its plan to axe the annual payment for all but the poorest elderly people this winter. Chancellor Rachel Reeves announced the plan in July as she scrambles to fix the £22billion hole the Tories left in the public finances.
Only those who get pension credit or other means-tested benefits will now get the winter fuel allowance, which is worth up to £300. But the cut is only expected to save £1.3 billion in 2024/25, and £1.5million in future years. The PM said pensioners were protected by the triple lock, which will see the state pension rise by £460 in April. He said it would “outstrip any money they lose through the winter fuel payment” and the poorest would still qualify.
He told the Sunday Mirror : “I think the principle of having an untargeted winter fuel payment for everybody, even those who don’t need it is something nobody really thinks is sensible.” Mr Starmer admitted there would be “difficult cases” but said stabilising the economy was crucial as it would mean pensioners aren’t clobbered by rising prices.
Asked if he would consider changing the threshold for pension credit to help those just above it, he said: “We’ll monitor it of course, as you would expect. But so far as this Budget is concerned, we’re not going to change the threshold.”
Unions are expected to put pressure on the Government to change course at Labour ‘s annual conference in Liverpool in the coming days. Unite, one of Labour’s biggest union backers, will try to force a vote on the issue on Monday. While the result would be non-binding, it would be an embarrassment for the Government – and lay bare the opposition to the plan in its ranks.
