Starmer U-turns on winter fuel payments

LONDON — U.K. Prime Minister Keir Starmer has signaled a U-turn on his government’s controversial decision to slash winter energy bill support for pensioners, after a backlash from his own MPs.

The prime minister told the House of Commons during Prime Minister’s Questions Wednesday that the government recognized people were “feeling the pressure of the cost of living crisis” and that, “as the economy improves,” he wanted to ensure “more pensioners are eligible for winter fuel payments.”

Starmer added that ministers would “look at the thresholds” at which pensioners become eligible for the payments, but insisted that this would have to occur at a “fiscal event,” meaning any changes will likely be introduced at the government’s next budget in the fall.

Chancellor Rachel Reeves announced the end of universal winter fuel payments for pensioners of between £200 and £300 in July last year, shortly after Labour took power. She blamed a fiscal “blackhole” left by the previous Conservative government.

The Treasury said it hoped the measure would save around £1.3 billion a year.

Payments were restricted to poorer households already receiving pension credit or other means-tested benefits.

However, the cut proved hugely unpopular and was frequently blamed by Labour MPs and campaigners for their poor performance at this month’s local elections campaign.