In a long-overdue reversal that signals a shift towards a more compassionate approach, Chancellor Rachel Reeves has confirmed that more pensioners will be eligible for winter fuel payments this year – a move likely to offer much-needed relief to many older people across Wales and beyond.
The announcement follows growing public concern over last winter’s controversial policy, which saw the payment—worth up to £300—restricted to only those on Pension Credit. That decision, one of Labour’s earliest after securing power, was widely criticised for its impact on vulnerable older people, particularly those whose income sat just above the narrow eligibility line. In Wales, where fuel poverty has remained a pressing issue, the policy’s effects were felt acutely.
Addressing the Commons, Reeves stated unequivocally: “People should be in no doubt that the means test will increase and more people will get the winter fuel payment this winter.” However, exact details of the revised threshold remain under wraps until the autumn Budget.
This move represents a quiet yet significant U-turn for Labour. Prime Minister Sir Keir Starmer has admitted the current system—introduced in haste amid financial pressures—left many pensioners in the cold, quite literally. Ten million fewer older people received the payment in 2024 compared to previous years, a figure that has sparked unease among charities, MPs, and community leaders across the UK. In Wales, with its older-than-average population and high rural energy costs, the backlash has been particularly strong.
The payment, traditionally a near-universal gesture of support during the UK’s coldest months, had until recently been seen as a political constant. But Labour’s decision to means-test it last year was a dramatic shift—one intended to signal fiscal restraint, but which backfired politically, notably contributing to disappointing local election results.
Now, the government says it is listening. Reeves, speaking in Greater Manchester on Wednesday, noted that the economy is in “better shape” and the government has “heard the concerns about the level of the means test.” While she made clear that Labour won’t return to the blanket approach that saw even millionaires receive payments, she emphasised a fairer balance would be struck.
Yet questions remain. What shape the new system will take, how many pensioners in Wales and across the UK will benefit, and how it will be funded are still unknown. The chancellor has ruled out borrowing for day-to-day spending and pledged not to raise taxes again, heightening speculation that departmental spending cuts may follow.
Pensions Minister Torsten Bell was firm that a return to the old universal system was off the table, arguing: “It’s not a good idea to pay a few hundred pounds to millionaires.” But even he admitted that expanding the current scheme to include many of those previously excluded is now a clear policy direction.
During Prime Minister’s Questions, Conservative leader Kemi Badenoch attempted to press Starmer on specifics, asking how many of the 10 million pensioners left out last winter would now regain access to the payment. Starmer did not provide a figure but reaffirmed his commitment to reassessing eligibility and said the government would set out funding plans in due course.
Badenoch, in a swipe seen by many as tone-deaf, accused Reeves of “rushing her plans because she just realised when winter is.” For many in Wales, where the cold season bites harder and energy bills stretch thinner, such comments will likely ring hollow.
The announcement comes just days before the 11 June spending review, expected to be a tough balancing act. Insiders have warned it could be “ugly”, as the Treasury faces pressure from all sides. Reeves has already hinted that not all ministerial requests for funding will be met.
Still, for pensioners across Wales, the news offers a glimmer of hope that Westminster is finally recognising their plight. With more clarity promised by the autumn, the challenge now lies in delivering a system that is fair, transparent, and doesn’t leave the most vulnerable out in the cold—again.
