The DWP Winter Fuel Payment is worth £300 and is paid to pensioner households between October and March.

Pension Credit claims can be backdated by up to three months and provide access to the Winter Fuel Payment. (Image: Getty Images)

A government minister has dashed the hopes of some pensioners by confirming that the Winter Fuel Payment will not be reinstated for all this year, despite Labour’s recent policy reconsideration. During an interview this week, a government minister made it clear that the Winter Fuel Payment would not be extended to “millionaire” pensioners but would instead be targeted at those “that need it the most”.

Sir Keir Starmer hinted last week at a possible backtrack on the contentious plan to means-test the Winter Fuel Payment. In a session of PMQ’s, the Prime Minister assured the Commons of the government’s intention to make more pensioners eligible for the Winter Fuel Payment in the future. However, Keir Starmer indicated that any decision regarding this matter would be “as part of a fiscal event” implying that changes could only be expected following a Spending Review.

Addressing the Commons, he stated: “I recognise people are still feeling the pressure of the cost of living crisis including pensioners, and as the economy improves we want to make sure people feel those improvements as their lives go forward.That is why we want to ensure as we go forward more pensioners are eligible for winter fuel payments. As you would expect we will only make sure we make decisions we can afford.”, reports the Mirror.

The Department for Work and Pensions (DWP) provides the Winter Fuel Payment, valued at £300, to help pensioner households with heating costs from October to March, aiming to alleviate the financial burden during the colder months. In a recent interview with Sky News, Chief Secretary to the Treasury Darren Jones addressed questions regarding Reform UK’s pledge to restore the Winter Fuel Payment in full.

Jones commented: “All of those things cost money. It’s right that we set out the detail and how we’re going to pay for those in a proper and orderly way.”

He emphasized the government’s stance on social assistance: “We’re sticking to the principle that millionaires shouldn’t be getting subsidy for their energy bills from the government, so Winter Fuel Payments will still be targeted to those that need it the most.” Speculation is rife that the Government may reconsider the current £11,500 threshold for the allowance, potentially enabling more individuals to qualify for this financial support.

The Labour administration had implemented means-testing for the Winter Fuel Payment last year, limiting its distribution to particular pensioners aged over 66, a change from the previous policy which included all pensioners. Consequently, this decision resulted in more than nine million pensioners missing out on this additional income during the last winter.

The policy attracted stark criticism, which persists, as legal confrontations have been instigated against the Government for their action. Charities have cautioned that the restriction could thrust an increasing number of elderly citizens in Britain into poverty.

A study carried out by Unite Union revealed that more than two-thirds of its retired members had to reduce their heating last winter, a third were having fewer baths or showers, and 16% had to cut back on hot meals due to the escalating costs of keeping warm. The scrapping of the benefit was also connected to the surge in Reform Councillors in the recent elections.