Welsh Secretary: Winter fuel payment U-turn possible due to ‘stabilised economy’
Welsh Secretary: Winter fuel payment U-turn possible due to ‘stabilised economy’
Welsh Secretary Jo Stevens MP has told Business in Wales that the UK Government’s U-turn on cuts to pensioners’ winter fuel payments is possible due to a “stabilised economy”.
Prime Minister Keir Starmer announced last week that the controversial policy, which saw many over-70s lose their annual £250 top-up, will be scrapped.
No details have yet been given on whether the payment will be returned to its previous level or whether it will be restored in time for this winter.
The Secretary of State said that further details on who will be eligible this winter will be announced around the time of Chancellor Rachel Reeves’ budget this autumn.
“We’ve stabilised the economy. You’ll see the figures — we’re now the fastest-growing economy in the G7 in the last quarter. That means we can look at doing things slightly differently because we’ve got the economy on a good footing, and we will look at trying to bring more people within the threshold for winter fuel allowance. The Prime Minister wants more pensioners to be able to have that support. And there’ll be more to come about that later in the year around the budget,” Stevens said.
Since the start of the year, the UK’s economy has grown faster than predicted, with a 0.7% increase — outpacing the US, Canada, France, Germany, Italy, and Japan, the countries that make up the rest of the G7.
However, it’s worth noting that these nations were hit harder than the UK by a global trade war, sparked by tariffs imposed by US President Donald Trump on “Liberation Day.” As that economic battle has now cooled, the UK’s growth is expected to level out in comparison with other major economies.
The reversal comes after Labour’s disappointing performance in the English local elections earlier this month.
The cut to winter fuel payments has proven a significant misstep for Sir Keir Starmer and his government. Labour lost 187 councillors in May, and public support has declined sharply since the overwhelming majority they secured at last year’s General Election.
Jo Stevens MP, however, denied the U-turn was motivated by the fall in popularity.
She said: “It’s because we’ve stabilised the economy. The highest G7 growth rate came out a week or so ago. We’ve had four reductions in interest rates since we came into government. We’ve just done three trade deals in the last two weeks. All of that is going to help in terms of stabilising the economy, which is our number one mission.
“By doing that, it means that we have better revenues, it means the public finances are better. It means we can start to make decisions and bring more people into support by the time we get to the autumn budget.”
As the government works to rebuild public trust and deliver on campaign promises, the restoration of winter fuel payments could mark a turning point — not only for the millions of pensioners relying on extra support but for a Labour administration keen to reassert its economic credibility. With a critical autumn budget ahead, the stakes for both policy and politics could not be higher.
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