**Rachel Reeves Announces Expansion of Winter Fuel Payments for Pensioners**
Chancellor Rachel Reeves has revealed that a greater number of pensioners will benefit from winter fuel payments this coming winter, signalling a significant policy shift, albeit stopping short of restoring universal payments. The announcement comes amid growing public concern about the cost of living and energy prices, particularly as the colder months approach.
During a visit to Mellor Bus in Rochdale on 4 June 2025, Reeves addressed reporters, stating, “More people will get winter fuel payment this winter.” While she refrained from releasing specific details, she promised that further information would be forthcoming. “People should be in no doubt that the means test will increase and more people will get winter fuel payment this winter,” she asserted, underlining the government’s commitment to supporting vulnerable pensioners during the winter.
The decision to expand eligibility appears to be a response to mounting criticism over last year’s changes, which significantly narrowed the scope of the payment. When Labour first came into power following its landslide election victory, one of its earliest fiscal measures was to restrict winter fuel payments to those also in receipt of a means-tested benefit, predominantly pension credit. This change, aimed at addressing a substantial budget deficit, saw the number of recipients fall dramatically from 11.4 million to just 1.5 million pensioners.
Despite this forthcoming relaxation, the government has made it clear that a return to universal payments is not on the cards. Pensions Minister Torsten Bell, appearing before the Work and Pensions Committee, stated decisively, “There is no prospect of a universal winter fuel payment.” Bell argued that most people agree it would be unfair for wealthier pensioners to receive hundreds of pounds in taxpayer-funded assistance. “We’re not going to be continuing with that. But we will be looking at making more pensioners eligible,” he noted.
Prime Minister Sir Keir Starmer has also expressed a willingness to re-examine the tight eligibility criteria as economic conditions permit. Speaking recently, the Prime Minister said, “as the economy improves,” he was keen to see more pensioners able to access this support, which is worth up to £300 per household. However, officials have thus far declined to provide estimates of how many more pensioners might benefit under the upcoming changes.
The winter fuel payment has long been a lifeline for older people struggling with heating costs during the coldest part of the year. The scheme’s recent restriction to pensioners on means-tested benefits, such as pension credit, was controversial. While it helped to shore up public finances after a period of economic uncertainty, critics argue it left many on modest but non-qualifying incomes out in the cold.
The government defends its approach on grounds of fairness and financial prudence. As Minister Bell told MPs: “We are committed to the principle that there should be some means-testing and that those on the highest incomes shouldn’t be receiving winter fuel payments.” He acknowledged, however, that many on lower incomes who did not qualify for pension credit unfairly missed out. “We’d like to see wider eligibility,” he said, though he stopped short of specifying which groups might be brought back into the fold.
The question of how best to target support to those most in need remains a delicate balancing act for ministers, particularly as energy prices and inflation continue to put pressure on household budgets. As discussions continue, many pensioners will be anxiously awaiting details about the revised eligibility criteria and how the expanded support will be delivered.
With further announcements regarding the changes expected soon, pensioners and advocacy groups alike will be watching closely. The shift from a universal to a means-tested approach—and possibly back towards wider coverage—highlights the ongoing debate over how to best support an ageing population amid challenging economic circumstances.