Work and Pensions Secretary Liz Kendall has defended the decision to take winter fuel payments from ‘millionaire pensioners’, but did not rule out changes to eligibility thresholds
Labour’s DWP chief Liz Kendall has refused to rule out changes to the winter fuel payment cut.
Policymakers are said to be drawing up plans to extend the number of people eligible for winter fuel payments, which was restricted by Chancellor Rachel Reeves last year. It is believed that the £11,500 threshold could be raised in a welcome boost for Britain’s elderly.
But Ms Kendall appeared to shoot down speculation that the change could be torn up altogether, saying she supports the principle. In an interview with The Observer she said “the policy remains the same”.
But asked whether the threshold could go up she said simply: “The principle that millionaire pensioners shouldn’t get the winter fuel allowance is the right one.” Currently only those who receive pension credit and other income-related benefits receive the payments, worth up to £300, after Ms Reeves announced it would be means tested.
It meant that around 10million pensioners missed out. Campaigners have demanded a u-turn, with No10 insiders hinting that work has been ramped up behind the scenes.
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Changes to thresholds could be announced in Rachel Reeves’ spending review next month, but the Government has been tight-lipped. Insiders fear the cut could become “Labour’s poll tax” – a reference to a hated charge that led to Margaret Thatcher’s downfall in 1990.
Internal focus groups are understood to have found voters would forgive ministers if they back down. It follows a difficult set of local election results earlier this month and defeat to Reform UK in the Runcorn and Helsby by-election.
On Friday Keir Starmer left the door open to changes to the policy, refusing three times to rule it out. He said: “We took difficult decisions, but the right decisions, including on winter fuel.
“These decisions were taken specifically with the purpose of stabilising the economy. And I think we’re seeing evidence of that in interest rate cuts and the growth figures.”
Downing Street were firm last week that no u-turn was planned on the policy. The PM’s official spokesman said: “The policy is set out, there will not be a change to the government policy, which set out the difficult decision we had to take to ensure economic stability, repair the public finances following the £22billion blackhole left by the previous government.”
Pressed further, they said: “The government has set out its policies and the reasons behind these policies and there is no change to the government policy and will not be a change to the government’s policy.”