UK

Starmer hints government will U-turn on winter fuel payment cutSir Keir Starmer has performed a dramatic U-turn on his controversial cuts to winter fuel payments for pensioners after mounting backlash from Labour MPs.At PMQs, the prime minister said he understood that pensioners were feeling the pressure of the cost of living crisis and he promised to “ensure that, as we go forward, more pensioners are eligible for winter fuel payments”.However, officials were unable to say how many more pensioners would be eligible or if the policy would be altered in time for this winter.The Labour government introduced means-testing for winter fuel payments of up to £300 last year, slashing the number of eligible pensioners from 11.4m to 1.5m.It was an issue that Labour campaigners were challenged on during May’s elections which saw the party lose councillors.Conservative Party leader Kemi Badenoch challenged Sir Keir over the “U-turn”, calling him “desperate”.The prime minister’s official spokesman was unable to give details about how Sir Keir would deliver on his promise or how many pensioners would benefit. Government has ‘declared war’ on employers through taxes, claim ToriesThe government has been accused of declaring a “war on employers across this land from the ramparts of Westminster”.Conservative shadow business secretary Andrew Griffith said Labour has imposed “taxes they promised would never come”, but business minister Gareth Thomas said the Conservative Party is trying to make the country believe it is living in an “alternate reality”.During his party’s opposition day motion on business and trade, which calls on the Government to “urgently change course”, Mr Griffith told the Commons Labour doesn’t “understand business”.He said: “Running or investing in a business at its core is a profound act of human courage – the triumph of optimism over inertia, a mindset of solving problems yourself rather than waiting for permission from others, embracing risk knowing there’s no guarantees, no bailouts, no-one is coming to rescue you.”He later said: “It should be the Government’s job to get out of their way, to help the business builders not the blockers, but this Labour Government understand none of this.“Instead of leaving business to get on and flourish, they’ve erected a blockade of bureaucracy and taxes they promised would never come.“They’ve declared war on employers across this land from the ramparts of Westminster.”Jabed Ahmed21 May 2025 15:47Recap | Starmer indicates partial U-turn over winter fuel payments squeezeIf you’re just joining us, here is a recap on Sir Keir Starmer’s winter fuel payment U-turn: The PM signalled a partial U-turn over the government’s decision to strip winter fuel payments from millions of pensioners at PMQs today.He said that “as the economy improves” he wanted to look at widening eligibility for the payments worth up to £300.However, officials were unable to say how many more pensioners would be eligible or if the policy would be altered in time for this winter.The government insisted the policy was necessary to help stabilise the public finances, allowing the improvements in the economic picture which Sir Keir said could result in the partial reversal of the measure.Conservative Party leader Kemi Badenoch challenged Sir Keir in the Commons, calling him “desperate” and asking how the public could trust him again.The Prime Minister’s official spokesman was unable to give details about how Sir Keir would deliver on his promise or how many pensioners would benefit.Officials fear that simply increasing the pension credit threshold would increase the take-up of that benefit, wiping out any potential savings.Jabed Ahmed21 May 2025 15:41Government must show ‘more ambition’ on tacking child poverty – think tankThe apparent winter fuel payment U-turn also “underlines the need for more ambition on tackling child poverty”, a think tank said.The Resolution Foundation warned this announcement must not be used “as an excuse to duck sensible changes” on welfare reform and lifting the two-child benefit limit.Ruth Curtice, chief executive of the Resolution Foundation, said: “The Government’s partial U-turn on Winter Fuel Payments may be welcomed by pensioners but it leaves huge questions about how support can be extended, and who will get it.“A sensible way forward would be to extend support to pensioners receiving housing and disability benefits, as well as Pension Credit. This is affordable at £300 million and would benefit more than a million families.“But today’s announcement must be seen in the context of the Government’s wider welfare trilemma as it also steers through controversial health and disability benefit reforms and prepares a new child poverty strategy.“This U-turn underlines the need for more ambition on tackling child poverty. Removing the two-child limit on support would allow the Government to show it is committed to raising living standards for all generations, and not just those beyond working age.”Jabed Ahmed21 May 2025 15:31Badenoch brands Starmer’s winter fuel shift a ‘joke’ and urges action before autumnKemi Badenoch has said it is a “joke” to say that Sir Keir Starmer’s partial u-turn on winter fuel payments is a reaction to the economy improving.“That’s a joke. We just had inflation figures this morning. It shows that inflation has doubled since they took office from the Conservatives. He is not running the economy well,” the Conservative Party leader said.She said she would like to see a change that means pensioners getting £11,000 to £15,000 a year getting winter fuel payments.She said it will be “too late” if Sir Keir waits until the autumn budget to set out the details.“If he’s waiting until the budget it means that people are going to lose their winter fuel payment for another year,” she said.The Conservatives would not support tax rises to fund extending winter fuel payments, she said.Jabed Ahmed21 May 2025 15:19Age UK cautiously welcomes Starmer’s pledge to re-think winter fuelCaroline Abrahams, Charity Director at Age UK, welcomed the prime minister’s pledge to review winter fuel payments but warned that “the devil is always in the detail”. She criticised last year’s means-testing, which left many low-income pensioners without support and led to “significant numbers of older people too frightened to turn on their heating”, putting their health at risk.“If nothing changes, next winter threatens to be just as bad,” she said, urging the government to avoid repeating the same mistakes. Ms Abrahams called for ministers to “put similar amounts of money back into the pockets” of pensioners who lost out and to restore confidence among older people in their ability to afford heating.She highlighted concerns for those entitled to Pension Credit but not claiming it, people on just above-threshold incomes, and those with serious health conditions who face high heating costs—an estimated 2.5 million people in total.Ms Abrahams said success should be judged by how well new policies help “vulnerable older people and those on low and modest incomes to heat their homes adequately next winter”.Jabed Ahmed21 May 2025 15:04Explained | Labour to reverse winter fuel payment cuts – who will be eligible and what happens next?After spending months ruling out a U-turn, it looks likely that the decision has come as a result of intense political pressure amid poor approval ratings and the threat of rebellion from Labour backbenchers.Our Political Correspondent Millie Cooke reports: Jabed Ahmed21 May 2025 14:55Jenrick criticises Starmer’s winter fuel U-turn Robert Jenrick has criticised Sir Keir Starmer over his apparent U-turn on winter fuel payments.Writing on X, the shadow cabinet minister said: “His [Sir Keir’s] £22bn ‘black hole’ has been exposed as an invention to justify the cruel decision to cut winter fuel for the most vulnerable.“The Conservatives won’t let him get away with breaking his promises to the British people.”Jabed Ahmed21 May 2025 14:48Campaigners welcome Starmer’s winter fuel U-turnDr Carole Easton OBE, Chief Executive at the Centre for Ageing Better, welcomed the prime minister’s move to revisit “the restrictive eligibility” for winter fuel payments, saying it could help more pensioners stay warm and protect their health this winter.She said government changes last year removed support from over 2.5 million pensioners “living on incomes insufficient to support a dignified standard of living”. While there’s “a case to be made” for removing payments from wealthier pensioners, Dr Easton said ministers “went too far” by limiting them to people on Pension Credit— excluding many who still “desperately need it”.“This was a poor decision on a human level,” she said, warning that it created “an avoidable crisis” and would likely backfire financially, as cold homes lead to increased health costs. The winter fuel payment change was announced by Chancellor Rachel Reeves last JulyThe dangers, she added, are “very real”, contributing to thousands of deaths each year and harming people in various ways.In the short term, Dr Easton called for widening eligibility for Winter Fuel Payments to more low-income pensioners. But longer term, she said the root issues must be addressed: “We have some of the highest energy bills and least energy efficient homes in Europe.”She urged the government’s upcoming Housing Strategy to set out clear plans to fix cold, poor-quality homes and include “sufficient, long-term funding” for accessible local support to improve home energy efficiency.Jabed Ahmed21 May 2025 14:34No 10 unable to give details on Starmer’s winter fuel claimsDowning Street was unable to say how many more pensioners would receive winter fuel payments or whether the reforms would be in place this winter.The prime minister’s official spokesman said Sir Keir Starmer wanted the changes to be introduced “as quickly as possible”.The changes will only be set out at a “fiscal event” – with Rachel Reeves’ autumn budget the first such opportunity unless the Government breaks with its schedule.Asked if the changes would be in place this coming winter, the spokesman said: “We obviously want to deliver this as quickly as possible, but the Prime Minister was very clear in the House that this has to be done in an affordable way, in a funded way, and that’s why those decisions will be taken at a future fiscal event.”Officials insisted the pledge to change course was based on the government’s stewardship of the economy and the public finances.Asked how markets could have confidence in the Government if it performed a U-turn whenever Labour suffered an electoral setback, the prime minister’s press secretary said: “We will only make decisions when we can say where the money is coming from, how we’re going to pay for it and that it’s affordable. And that’s what you’ve heard from the Prime Minister today.”Jabed Ahmed21 May 2025 14:19Tories in total disarray over winter fuel cutThe Tories appear to be in total disarray over winter fuel payments, with Kemi Badenoch’s official spokesperson failing to commit to reversing the policy despite pressing for Labour to do so.The spokesperson said the party wouldn’t have cut winter fuel payments in the first place, but pressed on whether they would commit to reversing the policy, he refused to be drawn.”I’m not going to write economic policy here”, he insisted. It comes despite the party repeatedly calling for Sir Keir Starmer to reverse the policy.Millie Cooke21 May 2025 14:05 More

Sir Keir Starmer has announced a major U-turn on his controversial cuts to winter fuel payments after mounting backlash from his own MPs and a devastating performance at the local elections. In July, the chancellor announced that pensioners not in receipt of pension credits or other means tested benefits would no longer receive winter fuel payments – a £300 payment to help with energy costs in the colder months. But asked about the policy at prime minister’s questions on Wednesday, Sir Keir announced that he wants to ensure more pensioners are eligible – something he claimed has come as a result of an improving economic picture. But after spending months ruling out a U-turn, it looks likely that the decision has come as a result of intense political pressure amid poor approval ratings and the threat of rebellion from Labour backbenchers. Who is eligible for winter fuel allowance?Currently, those aged over 66 in receipt of pension credits or other means tested benefits are eligible for the payment – amounting to an income threshold of £11,500. In winter 2024/25, around 1.5m pensioners received the payment – a massive drop from the 10.8m pensioners who received it the year before. What was the controversy around the cuts?The cuts were deeply unpopular because they were seen as being disproportionately damaging to vulnerable people, and were criticised for leaving thousands of poorer pensions who were on the borderline missing out on the payment. In November, it was revealed that the government’s own figures indicated the cuts would force 100,000 pensioners into poverty in 2026. The policy was partly blamed for Labour’s poor performance at the local elections – which saw them lose two-thirds of the council seats they had in 2021– as well as the previously Labour-held Runcorn and Helsby parliamentary seat to Reform UK. There is also a growing sentiment among Labour MPs that the winter fuel cuts, combined with the £5bn welfare cuts and the party’s decision to keep the two child benefit cap in place, has created an image of Labour as being the new ‘nasty party’. What has Keir Starmer said about reversing the cuts?The prime minister and his chancellor Rachel Reeves have spent months denying that they are planning changes to the policy in the face of growing pressure on them to do so. Earlier this month, Sir Keir’s official spokesperson defended the decision to introduce means testing for the payment as a difficult but necessary step to fix the economy. “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 £22bn blackhole left by the previous government”, Downing Street said. But addressing the Commons on Wednesday, Sir Keir said he recognises that “people are still feeling the pressure of the cost-of-living crisis including pensioners”. “As the economy improves, we want to make sure people feel those improvements in their days as their lives go forward. That is why we want to ensure that as we go forward more pensioners are eligible for winter fuel payments”, he said. Who will be now be eligible and what is the timeframe?The policy is very thin on detail, with no indication of who might be eligible under the changes. It is likely to involve a change to the £11,500 threshold at which people become eligible for the payment. However, it is not yet known how much this could be increased by. There has also been limited information on when the changes will come into force, with Downing Street leaving the door open to many pensioners facing another winter without the payment. It is understood that the detail of the policy will be presented at the October budget, however the PM’s spokesperson would not be drawn on whether the changes would come into force by this winter. More

One of Rachel Reeves’s first decisions when she became chancellor last summer was to strip 10 million pensioners of their winter fuel payments. The move was designed to show that Labour could take tough choices and was serious about sorting out the economy. But, in the weeks and months since, it has proven toxic for both her party and her government. Yet Keir Starmer has now said he wants to make sure “more pensioners are eligible”. So why is the government performing a U-turn now — and will it work? Keir Starmer and Rachel Reeves More

British Prime Minister Keir Starmer suggested Wednesday that a hugely unpopular measure which deprived millions of retirees an annual winter fuel subsidy will be changed, a striking reversal in policy.Starmer said he wanted to help people with the cost of living and added that he wanted more retirees to be eligible for the so-called winter fuel payments. He spoke during his weekly questioning in the House of Commons after figures were released showing inflation was up at its highest level in over a year. “As the economy improves, we want to make sure people feel those improvements,” he said. “That is why we want to ensure that as we go forward more pensioners are eligible for winter fuel payments.”Soon after Labour came to power last July, Treasury chief Rachel Reeves removed the winter fuel allowance, worth between 200 and 300 pounds ($266 and $399) a year, from all but the poorest retirees, arguing that the measure was needed because of the dire state of the public finances left by the previous Conservative government.The move has arguably contributed to a swift decline in popularity for Starmer’s government since it was elected. In local elections in England earlier this month, Labour fared poorly, with many party representatives blaming the removal of the winter fuel payment.Since then, there’s been growing speculation that the government will change tack by either scrapping the measure or increasing the level at which the allowance is paid.Starmer told lawmakers that the decision will be made “as part of a fiscal event.” It’s unclear whether that would be on June 11 when Reeves will outline her spending plans for government departments over the coming three years, or in her next budget in the fall. During Wednesday’s exchanges in the House of Commons, Kemi Badenoch, leader of the main opposition Conservative Party, asked how the public could “ever trust” Starmer after the “inevitable U-turn” on winter fuel payments.Starmer appeared to justify the change on economic grounds and said that higher than expected first quarter U.K. growth, lower borrowing costs and trio of trade deals with the European Union, India and the United States give the government room for maneuver.“It’s only because of the measures we’ve taken that the economy is improving, growth at the highest rate in the G7, four interest rate cuts, three trade deals because countries want to trade with this country because of the decisions that we’ve made,” Starmer said. More

Older people with bad backs and joint pain will be the worst affected by the government’s disability benefit cuts, the government has accepted.Figures reveal that more than three-quarters of those claiming personal independence payments (PIPs) for conditions including arthritis and back pain will lose their benefits in the cost-cutting drive. Meanwhile, less than half of those claiming for depression and anxiety will be affected, while just a fifth of those claiming for ADHD will be hit. The two categories are those which are growing the quickest.Work and Pensions Secretary Liz Kendall will double down on the plans More

Keir Starmer is on the verge of sanctioning senior members of Benjamin Netanyahu’s government over the crisis in Gaza amid calls from MPs for tougher action against Israel. The sanctions are being considered as alarm grows over the fate of thousands of Palestinians as the Israeli Defence Force steps up military operations and supplies continue to struggle to get through.Top of the list are understood to be Israel’s national security minister Itamar Ben-Gvir and finance minister Bezalel Smotrich, as well as others. It comes a day after Britain issued fresh sanctions against Israel and suspended trade talks over its “morally unjustifiable” escalation of violence in Gaza, with foreign secretary David Lammy blasting Netanyahu’s actions as “wholly disproportionate”.Israel’s security minister Itamar Ben-Gvir More

Angela Rayner sent a memo to Rachel Reeves suggesting an increase in taxes for savers, reports have claimed.The deputy prime minister was said to have suggested reinstating the pensions lifetime allowance and changing dividend taxes to raise revenue ahead of the spring statement, The Telegraph reported.The lifetime pensions allowance limited how much savers could put in their pension pot before incurring a higher tax charge and was abolished under the Tories.The deputy prime minister reportedly sent the suggestions in a memo titled “alternative proposals for raising revenue”, which estimated the changes could raise £3 billion to £4 billion a year.The chancellor has been adamant she will not turn to tax rises as part of the government’s efforts to fund its policies. But there have been reports that Ms Rayner has been pushing back against spending cuts behind the scenes.Angela Rayner sent a memo to Rachel Reeves suggesting an increase on taxes for savers, reports have claimed More