1.3m pensioners on disability and housing benefit in line for winter fuel payments  ...Middle East

More than a million pensioners on housing and disability benefits could benefit from the Government’s U-turn on the winter fuel allowance and receive the payment this year.

Chancellor Rachel Reeves used a speech on Wednesday morning to confirm that the changes to winter fuel payment eligibility would be implemented before winter.

It comes after The i Paper revealed last month that ministers were looking to fast-track the expansion of eligibility for the benefit to ensure pensioners receive the cash in time for the cold weather.

Sir Keir Starmer announced a partial U-turn on the Government’s decision to strip winter fuel payments from millions of pensioners after Labour MPs said the move badly hit the party at last month’s local elections, where Nigel Farage’s Reform UK were the big winners.

As Reeves made her pledge, Pensions Minister Torsten Bell and senior officials at HMRC appeared to rule out a number of mooted options for reforming the winter fuel payment so more pensioners receive it.

No payment for millionaires

Experts from the Resolution Foundation and Institute for Fiscal Studies (IFS) told The i Paper that it meant the only clear option for the Government would be extending the payment to pensioners on 1.3m housing and disability benefit at a cost of £300m.

It came after Bell firmly ruled out reinstating the winter fuel allowance as a universal benefit for all pensioners, stating there is “no prospect” of returning to the previous system as it would mean “millionaires” getting the payment”.

Bell also appeared to rule out a number of alternative options, including tweaking pension credit rules, introducing a taper system to stop people losing the payment at a cliff-edge threshold, or creating a new system of means-testing.

A senior HMRC official said another mooted option – treating the winter fuel payment like child benefit by paying it to all pensioners but then clawing it back from those on the highest incomes – would not be possible to implement in time for the winter, as Reeves has promised.

Jonathan Athow told the Commons Treasury Committee that it was possible to mirror the child benefit system for winter fuel, but that if payments are made in autumn as usual: “We would need to work out how the system worked and… if we were using the tax system to target that, it would need to follow those payments [in autumn].

“It would therefore happen some time next year”

Tom Waters, associate director at the IFS, said that the comments by ministers and officials on Wednesday suggested the Government had few options other than extending the payment to those on “housing benefit or disability benefit – or tying it to some other characteristic about you that the Government already knows about, that’s the general principle”.

“That is maybe the only thing that is not explicitly ruled out,” he said.

Also reacting to the comments, Alex Clegg, economist at the Resolution Foundation, said: “The Government has committed to a partial U-turn on Winter Fuel Payments, but now faces the challenge of devising a reform that still saves money, targets those who need help the most, and can be delivered in time for winter.

“One way to achieve all three objectives would be to extend Winter Fuel Payments to those pensioners who housing benefit and disability benefits, but not pension credit.

“This will support 1.3m more pensioners at a cost of around £300m.”

Reeves told reporters that more people will get winter fuel payment this winter”, adding that further details will be announced “as soon as we possibly can”, with an announcement anticipated as soon as next week’s spending review.

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She said: “People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter.”

The Chancellor also suggested that while the details of the new winter fuel system would be announced soon, she would not confirm whether she would be raising taxes or cutting spending elsewhere to pay for it until the autumn Budget.

Asked about the comments from the IFS and Resolution Foundation a No 10 source refused to comment on the details of the plan, saying it would be set out soon on the principles outlined.

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