Reeves defends move to cut winter fuel payments as 'right decision'

Chancellor Rachel Reeves has defended the government’s decision to cut winter fuel payments for some pensioners, insisting it will be offset by increases to pensions and lower energy prices this winter compared with last year.

Reeves said the state pension was worth £900 more than in 2023, and that it will rise again next April under the triple lock agreement.

Ministers had decided earlier this year to scrap winter fuel payments – worth up to £300 per household – for those who do not receive pension credits or other benefits.

Speaking in the House of Commons, the chancellor said she had settled on “difficult decisions” – which included making “the winter fuel payment better targeted” – to “put the public finances on a sustainable footing”.

She said: “We inherited a £22bn blackhole from the previous government who made unfunded spending commitments with no idea how to pay them.

“When I became chancellor I took an immediate audit of the spending situation to understand the scale of that challenge, and I made difficult decisions to put the public finances on a sustainable footing.

“They were tough decisions, but they were the right decisions.”

Reeves’ comments were criticised by a number of opposition MPs, with Dame Harriett Baldwin, Conservative MP for West Worcestershire, calling it a “chilling political choice”.

She said: “Within the first few days of coming to office, the chancellor managed to spend over £22bn, very quickly, by setting up great British Energy, by setting up a national wealth fund and by giving in to the pay demands of her party’s union paymasters.

“Is it not the case that this chancellor has made the chilling political choice to balance the books of this country on the very frailest shoulders?”

Liberal Democrat Steve Darling, meanwhile, raised concerns about the impact the move will have on pensioners, revealing around 21,000 alone in his Torbay constituency will lose the payment this winter.

“Whilst many of us would acknowledge that you were left with a massive financial challenge when coming into this House, one remains extremely concerned for residents who have reached out to myself and many colleagues with their major concerns about being able to make ends meet as we enter into the winter period,” he said.

“They have had no time to save for this, and therefore it’s a complete shock to them.”

Reeves said the government was working with charities and local authorities to encourage pensioners who are entitled to the pension credit benefit to apply, adding: “I want to ensure that the lowest income pensioners get the support that they are entitled to.”

What support is available for pensioners?

Aside from winter fuel payments, anyone concerned about whether they can afford to pay their energy bills is urged to get in contact with their suppliers.

Energy firms are required to work with customers to agree on a payment plan they can afford, which could mean more flexibility over how and at what time people pay.

Such plans should take into account people’s income and outgoings, debts and personal circumstances, and an estimate of how much energy will be used in future, for which regular meter readings can help build a more accurate picture.