UK Government Restores Winter Fuel Payments for 9 Million Pensioners Below £35k Income

The UK government, led by Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves, has reversed a controversial policy that restricted Winter Fuel Payments to only pensioners receiving means-tested benefits. This U-turn expands eligibility to all pensioners with an income of £35,000 or less, allowing around 9 million pensioners in England and Wales to receive payments of up to £300 this winter. Pensioners earning above this threshold will still receive the payment but will have it clawed back through the tax system or can opt out. This decision follows widespread backlash from MPs and charities concerned about rising poverty among older people amid high energy costs. The government maintains that the new income threshold balances support for low-income pensioners with fiscal responsibility, anticipating the policy change will cost approximately £1.25 billion but will not increase permanent borrowing. This move is also seen as a strategic response to political pressures following poor local election results.