Overview

• The government reversed its controversial 2024 decision to restrict winter fuel payments to Pension Credit recipients, which excluded over 10 million pensioners.
• Prime Minister Keir Starmer pledged to widen eligibility but did not confirm specifics or whether the changes would take effect this winter.
• Critics, including Martin Lewis, highlighted flaws in the means-testing policy, which left 700,000 of the poorest pensioners without support due to underclaimed Pension Credit.
• Options under consideration include a full reversal, raising income thresholds, extending eligibility to disability or housing benefit claimants, or shifting payments to individuals rather than households.
• The U-turn follows local election losses and internal Labour divisions, with speculation mounting that other welfare cuts, such as the two-child benefit cap, may also face reconsideration.