The Treasury has made a firm statement that “millionaires” should not benefit from taxpayer-funded support for their heating bills. Treasury Minister Darren Jones has stressed that winter fuel payment reform is key to ensuring that help is directed to those who genuinely need it.
Mr Jones, speaking to Sky News, said: “We’re sticking to the principle that millionaires shouldn’t be getting subsidy for their energy bills from the government, so winter fuel payments will still be targeted to those that need it the most.”
His comments come amid renewed debate over winter fuel payment reform, as the government faces pressure to revisit policies affecting both pensioners and struggling families.
Sir Keir Starmer has signalled a shift from Labour’s earlier stance, hinting that winter fuel payments could be partially restored to a broader group of pensioners.
At Prime Minister’s Questions, Sir Keir said the UK’s improving economy could allow for such changes at the next fiscal event. It follows intense lobbying from campaigners and criticism Labour faced during May’s local elections over means-testing the payment.
The winter fuel payment reform—introduced last summer by Shadow Chancellor Rachel Reeves—was initially meant to target low-income pensioners. However, it triggered backlash among older voters and campaigners who claimed it unfairly penalised middle-income retirees.
Meanwhile, Nigel Farage has pledged that Reform UK would scrap the two-child benefit cap and reverse the cuts to the winter fuel payments entirely.
Mr Jones dismissed such proposals, stating: “All of those things cost money. It’s right that we set out the details and how we’re going to pay for those in a proper and orderly way.”
He reinforced that winter fuel payment reform remains a key principle for the Treasury—only those in genuine need should receive government energy subsidies.
The Labour government is also under increasing scrutiny over child poverty. Mr Jones acknowledged the growing concern, adding: “We’re a Labour government. We want child poverty to be falling in this country, not rising.”
Prime Minister Starmer, on a visit to the North West, said the government is exploring “all options” to reduce poverty. “There isn’t a single bullet, but I’m absolutely determined that we will drive this down.”
Conservative leader Kemi Badenoch slammed Labour and Reform UK over their benefit proposals. Writing in the Daily Mail, she claimed: “Labour and Reform want people to fund unlimited child support for others… The Conservatives are the only serious party of sound money.”
Her remarks underline Tory concerns that relaxing the two-child cap and undoing the winter fuel payment reform would damage public finances.
Summary: What’s at Stake?
- Winter fuel payment reform aims to redirect subsidies to low-income pensioners.
- Labour hints at reversing the policy amid political pressure.
- Reform UK vows to scrap both the cap and payment cuts.
- Conservatives warn of economic irresponsibility.
As political tensions rise, the future of the winter fuel payment reform remains uncertain. But what is clear: the battle over who gets government support—and who doesn’t—is far from over.
