Keir Starmer announces U-turn on winter fuel payment cuts
Speaking at Prime Minister’s Questions on Wednesday 21 May, Keir Starmer confirmed that the Government will relax the restrictions on winter fuel payments, expanding eligibility to more pensioners.
Asked by Labour MP Sarah Owen about the measures the Government would take to assist pensioners in the face of the cost-of-living crisis, Starmer said that the economy is beginning to improve, but that he understands Britons are under financial pressure.
“I recognise that people are still feeling the pressure of the cost-of-living crisis, including pensioners,” he said.
“As the economy improves, we want to make sure people feel those improvements 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.”
Starmer noted that this expansion of eligibility for winter fuel payments to more pensioners would take place as part of an upcoming fiscal event.
This follows many MPs pushing for the cuts to pensioners’ winter fuel payments to be at least partially reversed.
Currently, pensioners with an income over the threshold of £11,500 are no longer eligible for winter fuel payments, which amount to £200 a year for pensioners under 80 and £300 for those over 80.
UK inflation rises higher than expected
Starmer’s U-turn on cuts to winter fuel payments follows the UK annual rate of inflation rising to 3.5%, it’s highest level since February 2024.
This rise in the annual rate reflected large upward effects from gas and electricity, which was caused by the raising of the energy price cap in April 2025.
Prices of electricity, gas and other fuels rose by 6.7% in the year to April 2025. Gas prices rose by 7.5% on the month, compared with a fall of 15.8% a year ago.
By comparison, the largest downward contribution to inflation came from clothing and footwear, partially offsetting the effects of rising bills.
Bank of England Chief Economist Huw Pill has warned that the UK is cutting interest rates too quickly, given the country’s inflationary outlook.
He argues that, while the underlying disinflation process remains intact, the quarterly pace of 25bp Bank Rate cuts seen since last summer is too rapid given the inflation outlook, in line with his preference for a ‘cautious and gradual’ pace for the withdrawal of policy restriction over the past year.
