Many pensioners in the UK may soon see a return of the winter fuel payment under new plans reportedly being considered by the government. After strong public pressure, Prime Minister Keir Starmer is now looking at ways to make more pensioners eligible for the payment, which was cut last year.
What Is the Winter Fuel Payment?
The winter fuel payment is a £300 allowance given to pensioners to help with heating costs during the cold months. However, last year, the government decided to limit this payment through a means-test. This means only those with lower incomes received it, while more than 10 million pensioners lost access.
This decision was very unpopular and led to criticism from both the public and opposition leaders.
Government May Reverse the Cut
Keir Starmer, during Prime Minister’s Questions (PMQs), promised to make more pensioners eligible again. Reports suggest that a decision was made just one day before his announcement to consider changes to the policy.
Although a complete U-turn is not likely, officials are working on a plan to bring back the payment for all pensioners, except the wealthiest. One idea is to give the payment to everyone and later take it back from higher earners through the tax system.
This method was used before by Tory Chancellor George Osborne for child benefit payments during the Coalition Government.
Final Decision Expected in Autumn Budget
So far, the Prime Minister has not shared full details. He confirmed that more information will come in the autumn Budget, likely in October. This is when a final decision will be made on who exactly will benefit and when the changes might start.
More Policy Changes on the Horizon?
The move to rethink the winter fuel payment has led to talk about other government policies that may also change. One key policy under review is the two-child benefit limit.
Currently, families can only claim Universal Credit or Child Tax Credits for their first two children. Any more children are not covered. This policy has been heavily criticised by Labour MPs and child poverty experts.
Delay in Child Poverty Strategy
The government was expected to announce a new child poverty strategy soon. However, this has now been delayed until the autumn, to align with the Budget.
Education Secretary Bridget Phillipson and DWP Secretary Liz Kendall are working together on this new strategy. The delay gives them more time to consider whether the two-child cap should be removed.
Reports suggest the PM has asked the Treasury to explore how the government could afford to scrap the cap. It would cost around £3.5 billion per year, but it could also lift hundreds of thousands of children out of poverty.
The UK government is under pressure to support pensioners and low-income families. Restoring the winter fuel payment and reviewing the two-child benefit limit are key issues currently being discussed. While no final decisions have been made, the autumn Budget is expected to bring major updates. If the plans go ahead, they could help millions of pensioners and children facing financial challenges.
FAQs
Who will get the winter fuel payment under the new plan?
Most pensioners, except the wealthiest ones, may get the winter fuel payment again if the new proposal is approved in the autumn Budget.
Why was the winter fuel payment cut last year?
The UK government decided to means-test the payment in 2024, removing it from over 10 million pensioners to save costs.
When will the final decision be made?
The government is expected to share full details in the autumn Budget 2025, likely scheduled for October.
What is the two-child benefit cap in the UK?
The two-child benefit cap limits financial support to the first two children in a family under Universal Credit or Child Tax Credit.
Is the two-child cap likely to be scrapped?
The government is considering removing the cap, but a final decision will come after the child poverty taskforce report later this year.
