Millions more pensioners will get winter fuel payments this year, Rachel Reeves has confirmed after a major U-turn.
The Chancellor had restricted the winter fuel allowance to people on Pension Credit or similar benefits, meaning ten million pensioners lost out.
But she was forced to change the policy after a backlash from voters, Labour MPs and activists, including at the May local elections which saw a string of victories for Reform UK.
Taking questions after a Spending Review speech in Manchester, when she announced transport projects for the North and Midlands, she confirmed that the easing of the controversial policy would take place in time for pensioners to get the payments this winter.
“We have listened to the concerns that people had about the level of the means test, and so we will be making changes to that, they will be in place so that pensioners are paid this coming winter,” Ms Reeves said.
“We’ll announce the detail of that and the level of that as soon as we possibly can. But people should be in no doubt that the means test will increase and more people will get a winter fuel payment this winter.”
How many more pensioners will get the payment this year has not been revealed.
But it is likely to be in the millions - any less would be unlikely to quell the anger at the policy and would be a political blunder leaving Labour vulnerable to Reform UK at the next general election.
One idea, being reported in The Times, is for all pensioners denied the payment of up to £300 to get it again, and then for those above the average level of real household disposable income, around £37,000, to have it clawed back through the tax system.
Such a scheme would mean around five million more people than currently would be eligible for the allowance.
Education Secretary Bridget Phillipson stressed the Government wanted more pensioners to get the payments but ruled out it going to “millionaires”.
Pension minister Torsten Bell on Wednesday said there is no prospect of returning to a universal winter fuel payment.
Speaking to the Work and Pensions Committee, Mr Bell said: "Directly on your question of is there any prospect of a universal winter fuel payment, the answer is no, the principle I think most people, 95% of people, agree, that it's not a good idea that we have a system paying a few hundreds of pounds to millionaires and so we're not going to be continuing with that.
"But we will be looking at making more pensioners eligible."
Mr Bell said he did not have "lots to add" to what Sir Keir Starmer had said recently about the allowance.
The Prime Minister recently signalled a partial U-turn over the Government's decision to strip winter fuel payments from millions of pensioners.
The PM said he wanted to look at widening eligibility for the payments "as the economy improves".
The decision to means-test the previously universal payment was one of the first announcements by Ms Reeves after Labour's landslide election victory last year and it has been widely blamed for the party's collapse in support.
Pension credit is the primary benefit by which pensioners can receive the winter fuel payment.
The credit tops up incomes for poorer pensioners and acts as a gateway to additional support, including the winter fuel payment.
