The Chancellor has made a “humiliating U-turn” as millions of pensioners are set to receive help with their energy bills this winter.
People who are over the state pension age in England and Wales who receive an income of less than £35,000 will receive the winter fuel payment.
Rachel Reeves has said that around nine million pensioners will receive the winter fuel payment this year under the Chancellor’s new rules.
Over three quarters of all pensioners will now receive support worth £200 per household or £300 for those aged 80 and over this coming winter.
Pensioners who receive an income more than £35,000 then a payment will be made, then HMRC will recover the payment through PAYE or a Self-Assessment return, which could pose problematic for those who will not understand how to do the paperwork.
Pensioners who earn high amounts will also be given the option to opt out.
Reeves said, “Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government.
“It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.
“But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out.
“This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.”
The Treasury said, “This change gives people certainty and ensures that payments can be made in time for this winter.
Payments will be better targeted than before 2024-25, when they were previously paid to all pensioners regardless of their income, meaning those on lower and middle incomes will still receive the help they need.
Kemi Badenoch, Leader of the Opposition, claimed the Prime Minister had “scrambled to clear up a mess of his own making.
The Conservative leader added, “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 judgment.
