Nine million pensioners will receive the winter fuel payment this year after a humiliating government u-turn. In a major victory for the Daily Express, Chancellor Rachel Reeves insisted she had “listened” to readers’ concerns as she reversed her hated policy to cut the benefit.
It means more than three-quarters of older people will get the allowance – worth up to £300 – this winter. Speaking exclusively to this newspaper, she said: “Nine million pensioners this winter will receive winter fuel payment, and they’ll receive it on time because of the decision that we have announced today to increase the level of the means test for the winter fuel payment.”
While not apologising outright to pensioners who have suffered, Ms Reeves said she “understood” and had “listened to their concerns.
She claimed she was able to make the change because the economy is in a healthier position now than last July, when she swiped the allowance away within days of Labour’s general election victory.
“I think Express readers can see the state of the economy, can see the state of the public finances that this Labour government inherited last year,” she said.
“It meant a number of difficult decisions on welfare, on spending and on tax to restore stability to the public finances.”
Pressed on whether she empathises with the millions of pensioners who didn’t get the vital payment or have endured months of worry she added: “Yes, I absolutely understand that there are people just above the pension credit level, who were concerned about losing the winter fuel payment.
“We were able to increase the new state pension, the basic basic state pension, by over £450 in April this year, because of our commitment to the triple lock, which is only possible because of the stability that will return into the economy and also Express readers will know that we have managed to reduce NHS waiting lists since we came to office because of the investment that we put into our national health service.”
Ms Reeves said the policy will remain until 2029 but wouldn’t confirm if it will be in Labour’s manifesto at the next general election.
The move is the culmination of a shambolic volte face on the policy, which has been blamed for the dramatic plunge in Labour’s popularity and an embarrassing by-election defeat to Reform UK.
Nigel Farage, who has promised the benefit will be returned universally if he becomes Prime Minister, heaped praise on our winter fuel crusade.
Holding up a Daily Express front page as he held a press conference in Port Talbot, Wales, he said: “I think we can claim some credit, with this Express headline from last week.
“And well done the Express for splashing it, and I think we have made the political weather on this one.
“There is no doubt in my mind that the government would not have u-turned on this had it not been for the pressure Reform UK is putting on them.”
The new changes expand the threshold for receiving the benefit, meaning those elderly with a pension below £35,000 now get it.
No pensioner will need to take any action as they will automatically receive the payment this winter, and for those with incomes above the threshold it will be automatically recovered via HMRC.
The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter.
Approximately 2 million individuals in England and Wales over State Pension age have taxable incomes above £35,000.
But reversing the policy is expected to cost £1.25 billion with the new means-testing saving Treasury coffers around £450 million.
The Tories have demanded Ms Reeves and Keir Starmer say sorry for making vulnerable elderly people choose between “heating and eating”.
Conservative party leader Kemi Badenoch said: “Keir Starmer has scrambled to clear up a mess of his own making.
“I repeatedly challenged him to reverse his callous decision to withdraw winter fuel payments, and every time Starmer arrogantly dismissed my criticisms.
“This humiliating u-turn will come as scant comfort to the pensioners forced to choose between heating and eating last winter. The Prime Minister should now apologise for his terrible judgement.”
Tory MP Esther McVey, who has campaigned tirelessly against the cuts for her constituents in Tatton, added: “This is a massive success for the Daily Express who set out to campaign against this cruel and vindictive policy right from the outset.”
She said Labour’s “booting” during last month’s local elections had also played a part.
Labour backbencher Rachel Maskell, who had pressed for a rethink on the policy, said: “This is the right decision to protect people from the cold, however since its removal was first announced, energy bills have risen by £281, so it is clear that more needs to be done to ensure that older people don’t face fuel poverty this winter.”
Campaigners and charities welcomed the shift, but suggested the axe should never have been wielded in the first place.
Dennis Reed, director of Silver Voices, which has campaigned for the policy to be reversed, said: “The Chancellor’s climbdown is a vindication of the long Silver Voices campaign, with the valuable support of the Express, to restore the winter fuel payment, an objective which many argued was impossible to achieve.”
Baroness Ros Altmann, the respected champion of older people’s issues, welcomed the u-turn of a policy she described as “one of the worst policy decisions for pensioners that I have ever seen”.
Independent Age chief executive Joanna Elson said: “Our helpline receives thousands of calls from older people making drastic cutbacks just to get by and the changes to the winter fuel payment made this worse.
“For millions living on low incomes, the entitlement supports them to turn their heating on and stock up on food during the colder months.”
Caroline Abrahams, charity director at Age UK, said: “At Age UK we heard from many through the winter who were so frightened about their bills that they didn’t even try to keep their homes adequately warm.”
UNISON general secretary Christina McAnea said: “This is the right thing to do. The government acknowledges it made a mistake.
“Restoring the fuel payment to all but the wealthiest pensioners will make a huge difference to anyone who struggled to keep warm last winter.”