Keir Starmer set for huge winter fuel u-turn in June after huge defeat

Sir Keir Starmer has opened the door to an embarrassing u-turn over means-testing Winter Fuel Payments amid fears that furious voters are . The Prime Minister declined to rule out a reversal when he spoke to the Daily Express last night - and suggested the economy had improved since the "difficult decision" to cut payments was made last year.

Sir Keir was asked about reports he is holding talks with aides about changes which could mean or increasing the threshold so that more pensioners are eligible for payments of up to £300. He said: "Look, we took difficult decisions, but the right decisions, at the budget, including the decision that we took on winter fuel.

"As a result of those decisions - I mean, they were taken specifically with the purpose of stabilising the economy. And I think we're seeing the evidence of that in the interest rate cuts and the growth figures. So, they were difficult decisions but they were right decisions."

The suggestion that economic stability has now been achieved could allow the Prime Minister to argue that means-testing was essential last year but is no longer required.

Sir Keir's advisers believe the policy is so unpopular that it is worth carrying out a humiliating rethink and an announcement could be made as soon as next month.

It comes after anxious Labour MPs warned Number 10 that anger over means-tesing, which robbed millions of pensioners of money to help them stay warm in winter, contributed to Labour's huge losses in local elections earlier this month.

And focus groups have reportedly reassured the Prime Minister that voters will back a change of heart.

The most likely option is to increase the means-testing threshold, currently £11,809 for most single pensioners, so that far more people are eligible for the payment. Another option is to scrap means-testing entirely and return to a situation where all pensioners are usually eligible for the money, but this is less attractive because of the huge cost.

An announcement could come as soon as the Spending Review on 11 June. Alternatively, the change could be announced in Rachel Reeves' Budget statement in the autumn.

The move would be a particular embarrassment for Chancellor Rachel Reeves, who announced the means-testing policy last year. However, Sir Keir is said to be determined to protect the Chancellor and will make it clear she has his full support.

More than nine million pensioners no longer receive payments of up to £300 as a result of means-testing, which means only people eligible for pension credit usually qualify for the benefit.

The Government has admitted the policy will plunge 100,000 pensioners into poverty. Increasing the threshold at which payments are made would significantly cut this number even if wealthier pensioners continued to be excluded.

An analysis of by professor Sir John Curtice found Reform received 31% of the vote with Conservatives on 23%, Liberal Democrats on 17% and Labour on 14%.

Labour's poor showing partly reflects the areas where voting took place, including county councils where Labour has traditionally performed badly, but it still marks a sharp decline from 2021 local elections held largely in the same places, when Labour gained 27% of the vote.

Some of Sir Keir's MPs have publicly warned that winter fuel payment means-testing helped cause the defeat, while many more have expressed private concerns.

Labour MP Rachael Maskell said following the May 1 local elections that Labour was being damaged by "all of these poor decisions that are being made" including the decision to refuse compensation to "Waspi" women hit by the state pension age increase. She warned: "Policies that have been introduced since July that weren't in our manifesto - the cuts to winter fuel, not honouring the Waspi women, taking away the vital lifeline of support for disabled people - of course people are confused."

Fellow Labour MP Emma Lewell said earlier this month: "Labour was elected on the promise that we would be committed to serving the public and in doing so improve their lives.

"Within months of that General Election there was the 'freebies' scandal and the removal of winter fuel from millions of pensioners."