Ministers fear Labour could lose the next election because of cuts to winter fuel allowance
Prime Minister Keir Starmer is said to be considering a major u-turn (Image: Getty)
Keir Starmer is believed to be considering a partial u-turn on winter fuel payment cuts following Labour’s devastating defeat in last week’s elections. Ministers fear the changes, which the Government admits will plunge 100,000 pensioners into poverty, have turned voters against the party and could cost them victory at the next general election.
The Guardian reports that Number 10 sources said they were considering whether to increase the threshold at which pensioners stop being eligible for the allowance. But Downing Street last night insisted there was no review of the policy. More than nine million pensioners no longer receive payments of up to £300 as a result of changes announced by Chancellor Rachel Reeves. It means only people eligible for pension credit usually qualify for the benefit while single pensioners with incomes about £11,809, or couples with incomes over £18,023, are deemed to be too wealthy to need the support.
A full u-turn is thought to be unlikely but Ministers were reported to be looking at increasing the threshold so that more pensioners get the cash. However a Number 10 source said: “There is no review”.
Labour MPs who canvassed in the run-up to last week’s local elections say voters on the doorstep told them bluntly that they objected to the change. And there is particular concern because the Treasury is thought to be planning yet more cuts to benefits, on top of changes to Personal Independence Payments already announced which meant 800,000 people with disabilities no longer receive the cash, losing an average of £4,500 per year.
One cabinet minister was reported to say: “It comes up on the doorstep all the time. Winter fuel will lose us the next election, it was a terrible mistake. But it’s probably too late for a U-turn now.”
A number of Labour backbenchers have demanded a rethink in recent days. Former Transport Secretary Louise Haigh said: “Welfare reforms and the loss of the winter fuel allowance were the primary examples offered as to why the Labour government simply did not look like it understood their priorities. Both have become totemic for many voters.”
Labour MP Dan Carden warned: “It was the working class that turned its back on Labour last Thursday. They understand that the present system is not working in their interests or for their values. People feel abandoned – not just economically, but morally.”
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And fellow Labour MP Emma Lewell said: “Labour was elected on the promise that we would be committed to serving the public and in doing so improve their lives.
“Within months of that General Election there was the ‘freebies’ scandal and the removal of winter fuel from millions of pensioners.”
And she said: “Strong governments admit mistakes and change.”
Labour lost nearly two thirds of the seats it was defending, with Reform taking control of Durham County Council, in Labour’s red-wall north east heartland, and winning the by-election in Runcorn and Helsby, a seat previously held by Sir Keir’s party.
Some Labour MPs have predicted there will be a u-turn on the winter fuel cuts before the weather turns cold again in the run-up to Christmas.
One said the party won last year’s general election by focusing on the cost of living, but then made the problem worse for elderly people once in government.
They said: “Reinstating winter fuel and revisiting Personal Independence Payments changes are the minimum that must be done if we want to prevent a Reform wipeout.”
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