The government had announced a significant U-turn on winter fuel payments, confirming that millions more pensioners will receive the benefit this year. Chancellor Rachel Reeves stated that the means test criteria will be raised to include more pensioners, following backlash from voters, Labour MPs, and activists. “We have listened to the concerns about the means test criteria, and we will be making changes so that more pensioners qualify for the winter fuel payment,” said Reeves. “Details will be announced soon, but the means test will be raised to include more pensioners.”
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The exact number of additional pensioners who will qualify has not been revealed, but it is expected to be in the millions. One proposal involves reinstating the payment for all previously eligible pensioners and then clawing it back via the tax system for those with an average household disposable income above £37,000. This would potentially make up to five million more people eligible for the allowance.
Education Secretary Bridget Phillipson emphasized the government’s aim to extend the payments to more pensioners while excluding high earners. Pension Minister Torsten Bell also confirmed the government’s intent to widen eligibility.
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However, there are concerns about the potential burden on bereaved families if the tax system is used to recoup payments from wealthier pensioners. Government insiders have expressed worries about the six-month time lag between the payment being made and subsequently reclaimed, as many pensioners might pass away during this period, leaving their grieving families to handle the financial burden. In addition to the winter fuel payment changes, the government has announced an expansion of free school meals.
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From September 2026, all pupils in England whose families claim Universal Credit will be eligible, benefiting more than half a million additional children. This move is expected to put nearly £500 back into parents’ pockets each year and lift an estimated 100,000 children in England out of poverty. Anti-poverty campaigners and teaching unions have widely welcomed the expansion of free school meals.
Changes to winter fuel eligibility
Nick Harrison, Chief Executive of the Sutton Trust, emphasized the importance of this initiative in removing hunger from the classroom and improving educational outcomes for disadvantaged young people. The government’s reversal on winter fuel payments follows significant public discontent and fears of electoral damage. The Chancellor also acknowledged tensions within the cabinet and the necessity of rejecting certain departmental spending requests to balance the books, indicating that tax rises or further spending cuts could be on the horizon this autumn.