Rachel Reeves has given the clearest sign yet that her resolve over the removal of the winter fuel payment could be softening. The Chancellor has faced fierce criticism for her decision early into her time in office to means test the payment, depriving millions of pensioners of the vital source of income.
Polling from analysts More in Common found that the decision was Labour’s most damaging policy in government, with the public more aware of the change than any of Labour’s other policies. Criticism from Labour MPs and feedback from grassroot activists who campaigned during the recent local elections has led to speculation that the Government might be willing to perform an embarrassing U-turn on the policy in a desperate bid to stem the damage caused. Speaking on LBC today, the Chancellor said: “I do understand the concerns that some people have about the level at which the winter fuel payment is removed.”
Following the changes to the payment, only the poorest in society who are in receipt of certain benefits would continue to receive the £300 annual payment.
The measure is believed to have saved the Treasury £1.5 billion but has come at a huge political cost, with many attributing the policy as a key factor in Labour’s poor showing in this month’s local elections.
Speaking after narrowly avoiding losing the mayoralty, Labour Mayor of Doncaster Ros Jones said: “I wrote as soon as the winter fuel allowance was actually mooted, and I said it was wrong, and therefore I stepped in immediately and used our household support fund to ensure no-one in Doncaster went cold during the winter.”
Left-wing Labour MP Kim Johnson is one of many within the party who have spoken out about the policy and the damage it could do to the party electorally.
She said on X: “Voters want change – and if we don’t offer it with bold, hopeful policies that rebuild trust, the far right will.”
Voters in Reeves’s own constituency have previously expressed their disgust to the Daily Express over the decision.
Speculation has circulated in the wake of Labour local election humiliation that the Chancellor might consider easing the limit at which the benefit was removed to ensure those on low incomes regain the vital annual payment.
When asked directly about raising the threshold, Ms Reeves refused to rule it out.
She said: “We are always listening to these things, I’m not going to set out any policy today but of course we are always listening.”
Rachel Reeves and the Treasury have been contacted for comment
