Just three weeks after Labour swept into power with a landslide victory, Rachel Reeves made a move that’s still causing political headaches and sparking fury among millions. On 29 July, Reeves announced that the Winter Fuel Payment would be scrapped for most households in England and Wales unless they’re on Pension Credit or other means-tested benefits.
That decision instantly affected around 10 million pensioners, slashing up to £300 in support meant to help cover soaring energy bills. While some of the better-off may shrug it off, about two million pensioners who just miss the benefits threshold are feeling the pinch — and they’re not staying quiet about it, reported the Express.
The backlash hasn’t gone away. In fact, it’s only grown louder, especially after Reeves delivered a £40 billion Budget tax grab and outlined plans for a £5 billion squeeze on disability benefits in March. These decisions are now being pointed to as reasons behind Labour’s bruising local election results last Thursday.
For many Labour members and supporters, the Winter Fuel Payment cut was a sign that the new government had lost touch with its own base almost immediately. Now the calls for a U-turn are getting hard to ignore.
Doncaster’s Labour mayor, Ros Jones, who narrowly kept her seat, didn’t mince her words: “The Prime Minister must start listening to those calling for a U-turn on cuts to Winter Fuel Payments and disability benefits.”
Leeds East MP Richard Burgon echoed that frustration: “By pushing policies like cuts to disability benefits and scrapping the Winter Fuel Allowance, the leadership is driving away our own voters and letting Reform squeeze through.”
It’s not just the usual suspects on the left. Big names like Diane Abbott and John McDonnell have piled on, alongside Unite boss Sharon Graham, who called the cut “a disgraceful betrayal of older voters.” And many aren’t just asking for the payment to be restored for those in financial trouble — they want it reinstated for everyone, arguing it’s a crucial way to keep Labour’s core support from crumbling.
So far, Reeves hasn’t budged. And politically, a U-turn comes with risks. No chancellor wants to be seen as backing down — it invites accusations of weakness and opens the door for critics to pile on.
But with just £1.5 billion saved from axing the payment — a drop in the ocean compared to the UK’s £150 billion annual deficit — some argue the damage to Labour’s reputation just isn’t worth the relatively small gain. Whether Reeves holds the line or admits defeat, one thing’s for sure: millions of pensioners are cold, angry, and waiting for an answer.
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