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UK to Roll Back Winter Fuel Payment Means Test in June Spending Review

Criticism over excluded low-income pensioners has prompted ministers to explore new eligibility measures including tying payments to council tax bands or disability benefits.

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Overview

  • Prime Minister Keir Starmer has pledged to revisit the £11,500 Pension Credit threshold after local election setbacks blamed on the means-testing policy.
  • Chancellor Rachel Reeves will detail proposed changes in the Spending Review on June 11, targeting broader support for winter heating costs.
  • Options under consideration include a full restoration of payments at a £1.5 billion annual cost or extending eligibility to pensioners on disability benefits for around £500 million.
  • Proposals to link entitlement to council tax bands A–C could add roughly 6.3 million households while still excluding the highest earners.
  • Campaigners caution that any new system must simplify claims and address past administrative hurdles that left about 700,000 vulnerable pensioners without support.