Miliband on Winter Fuel Payment Change
- The government is facing scrutiny after partially reversing a decision to cut winter fuel payments.
- Last year's decision to withdraw the payment,worth up to £300,affected over 10 million pensioners.
- Miliband acknowledged the initial cut was difficult but necessary.
Ed Miliband defends the government’s partial reversal of winter fuel payment cuts, a key development impacting millions of pensioners.The government is expanding the winter fuel payment eligibility,extending it to nine million pensioners in England and Wales with incomes under £35,000. This decision comes after a previous cut to stabilize the economy, causing political debate. news Directory 3 reports on Miliband’s acknowledgment of the initial difficult choices, highlighting the response to public concerns and the revised policy. Conservatives question the funding, while experts debate the policy’s effectiveness. the upcoming autumn budget will reveal the funding details for the winter fuel payment expansion. Discover what’s next for pensioners.
Government Reverses Course on Winter Fuel Payment Cuts
Updated June 10, 2025
The government is facing scrutiny after partially reversing a decision to cut winter fuel payments. Energy Secretary Ed Miliband defended the move, stating that Chancellor Rachel Reeves initially reduced the winter fuel payment to stabilize the economy. Now, a partial U-turn will extend eligibility to more pensioners.
Last year’s decision to withdraw the payment,worth up to £300,affected over 10 million pensioners. only those receiving pension credit or other means-tested benefits, about 1.5 million people, remained eligible. Following pressure, the government will now extend the winter fuel payment to nine million pensioners in England and Wales with annual incomes of £35,000 or less.
Miliband acknowledged the initial cut was difficult but necessary. He argued that the nation’s finances have since stabilized, allowing the government to respond to public concerns. He also emphasized that wealthier pensioners should not receive the payment and credited Reeves for adapting the policy.
the Conservatives are critical, with Shadow chancellor Mel Stride questioning the funding source for the £1.25 billion policy change. He claimed Labor already spent the savings from the original cut.Liberal Democrat leader Sir ed Davey said pensioners were forced to choose between “heating and eating” while the government delayed action.
Experts are also weighing in. Paul Johnson, head of the Institute for Fiscal Studies, questioned whether expanding the winter fuel payment is the most effective way to reduce poverty, noting that the poorest pensioners already receive it. The Resolution Foundation warned of increased complexity and administrative costs.
The government was “sticking by the principle” that the wealthiest pensioners should not get the payment, but it was right to expand the numbers who would receive it and that Reeves deserved “credit” for the change, Miliband said.
What’s next
The government plans to outline the funding details for the expanded winter fuel payment in the autumn Budget. Officials maintain the change will not lead to permanent additional borrowing due to an improving economy.The government also stated that pensioners will not need to register to receive payments, and an opt-out system will be developed.