Sir Keir Starmer has been forced into a dramatic U-turn over the government’s controversial winter fuel payment cuts after months of mounting anger from voters and Labour MPs.
In a major climbdown over Rachel Reeves’ decision to strip payments from 10 million pensioners, the prime minister said he wanted to look at widening eligibility “as the economy improves”.
But No 10 refused to say whether the changes would be in place by this winter – or who would be affected – meaning cash-strapped pensioners could face another winter of misery.
The decision to means-test the annual payment of up to £300, rather than give it to all pensioners, was widely blamed for Labour’s disastrous recent local election results, which saw Nigel Farage’s Reform party surge to take 677 council seats in England.
It comes as Sir Keir battles to turn around his party’s fortunes amid fears of a rebellion from backbenchers over benefit cuts, anger over his language on immigration and difficult poll ratings.
Sir Keir told the Commons during Prime Minister’s Questions: “I recognise 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.”
But Labour MPs, including Ian Lavery and Zarah Sultana on the left of the party, urged their leader to go further and reverse the cuts in full, while Welsh first minister Baroness Eluned Morgan said she wanted “significantly” more pensioners to get the cash.
The policy was one of Ms Reeves’ first announcements when she took office last summer.
Allies of the chancellor said she and Sir Keir were “united” on the U-turn, but the fact that the PM made the announcement – effectively taking ownership of the issue – will further fuel speculation about her future in the role.
Many critics of Ms Reeves accuse her of pushing a policy which had been bouncing about the Treasury for years, but was rejected by her predecessors in the job.
Downing Street later indicated that the changes would be outlined in the Budget in the autumn. But they would not be drawn on whether or not that meant more pensioners would receive the money in time for this coming winter.
Conservative leader Kemi Badenoch branded Sir Keir “desperate” and said the U-turn had been “inevitable”.
She also warned it would be “too late” if ministers waited 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.
Liberal Democrat leader Sir Ed Davey pressed Sir Keir to reverse the cuts to the payment in full.
Earlier, veteran Labour MP Diane Abbott likened the policy to Margaret Thatcher’s controversial poll tax in the way it had “cut through” to voters.
Caroline Abrahams, from Age UK, said the government’s winter fuel cuts had “resulted in many pensioners on low incomes missing out on money they simply couldn’t afford to lose”.
She said her organisation had seen “very significant numbers of older people too frightened to turn on their heating when it was cold, making life utterly miserable for them and putting their health at risk”. She added: “If nothing changes, next winter threatens to be just as bad”.
Independent Age’s Amy Dodge said that, as people face higher bills and rising inflation, pensioners on low incomes “need reassurance that they will be supported to heat their home next winter and beyond”.
Ruth Curtice, chief executive of the Resolution Foundation think tank, said the announcement leaves “huge questions”. She said a “sensible” solution would be to extend support to pensioners receiving housing and disability benefits, as well as those currently on Pension Credit.
“This is affordable at £300m and would benefit more than a million families,” she said.
The partial U-turn came hours after a memo leaked to The Daily Telegraph showed the deputy prime minister, Angela Rayner, had pushed for a radical combination of tax hikes to avoid the need for further cuts in spending.
In a memo to the chancellor ahead of March’s spring statement, she suggested reinstating the pensions lifetime allowance and changing dividend taxes.
No 10 is also facing a potential rebellion from Labour MPs next month when tough welfare cuts, including to disability payments, are due to be voted on in the House of Commons.
More than 100 Labour MPs have already signed a letter raising their concerns about the changes.
Sir Keir has also faced a furious backlash from within his own party as he tried to tackle the threat posed by Mr Farage with a crackdown on immigration last week. His own MPs joined trade unions and charities in comparing his language with that of the far-right and Enoch Powell after he claimed that the UK risks becoming “island of strangers” because of migration.
