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Home » Politics » Winter fuel payment restored for all but the richest? Here’s how it works!

Winter fuel payment restored for all but the richest? Here’s how it works!

One plan on the table is restoring it completely and then clawing it back from the richest OAPs through the tax system.

Joe Connor by Joe Connor
May 25, 2025
in News, Politics
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Keir Starmer bowed to furious backlash and vowed to restore winter fuel payments for “more pensioners” after last year’s unpopular means-test axed £300 from over 10 million retirees.

👴 What’s on the table?
Downing Street reportedly shelved plans to fully reverse the cut. Instead, officials are exploring a two-step fix:

  1. Restore the £300 payment for everyone.
  2. Claw it back from the wealthiest pensioners via the tax system.

This mirrors George Osborne’s method in 2013 when he slashed child benefit for higher-income families under the Coalition Government.

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🗓️ Autumn Budget timeline
Starmer promised details at the autumn Budget but didn’t specify numbers or dates. Sources say the decision to shift course came just a day before his PMQs announcement.

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📈 A partial U-turn
No10 insists they won’t scrap the means-test entirely. Instead, the Treasury is examining thresholds to ensure only the richest miss out. One idea: set an income cap—if you earn above it, you repay the payment through your tax bill.

📊 Broader policy shake-up?
This winter fuel twist could trigger changes to other Tory cuts. The government delayed its child-poverty strategy until autumn amid Labour pressure to scrap the two-child benefit limit. Reports suggest Starmer wants to consider a full repeal, potentially costing £3.5 billion annually.

Tags: Keir Starmer
Joe Connor

Joe Connor

Former editor at The London Economic.

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