Sir Keir Starmer’s “reversal” of the Winter Fuel payment cut announced on Wednesday by the government is only a revisit of the payment thresholds.
This is not a return to the previous qualifications, say leading audit, tax and business advisory firm, Blick Rothenberg.
The company said for the Prime Minister to call the winter fuel payment’s cut a “reversal” is “not accurate.”
Stefanie Tremain, a Partner at the firm, said: “The Prime Minster, Keir Starmer’s comments on the winter fuel cut are welcome, but calling it a ‘reversal’ is not accurate.
“Instead of a return to the previous system, the thresholds for getting the winter fuel payment will be revisited so that more pensioners will qualify rather than just those on certain benefits. According to the Government, the criteria for the payment was tightened up to save money and reportedly saved the Treasury £1.4bn in 2024.
“However, as more pensioners rushed to claim pension credits and other allowances to ensure that they continued to qualify, the actual cost saving is unclear.”
On Wednesday the Tory leader accused Starmer of “shafting the country” as he has made a U-turn on the winter fuel allowance for pensioners.
Starmer who has been publicly humiliated told MPs in the house of Commons, “We want to ensure that as we go forward, more pensioners are eligible for winter fuel payments.”
Tremain said, “Over nine million pensioners lost out on their winter fuel payment last year, many of whom arguably needed it.
“Currently, pensioners who qualify can get a single payment of £200 if they are under 80 or £300 if they are over 80, and this is paid in November or December.”
She added, “Hopefully any change to the thresholds will ensure that pensioners who currently struggle to pay their energy bills benefit. More importantly, any change must be introduced and enacted before the winter months. Especially as energy prices continue to rise due to inflation.
“However, how the Government are going to find the £1.3 billion that they had originally planned to save in 2024/25 and £1.5 billion in subsequent years remains to be answered if they do reverse the cuts.”
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