Communities Minister Gordon Lyons welcomes 'u-turn' by Keir Starmer on Winter Fuel Payments - but calls for rethink of wider welfare reforms

More than nine million pensioners lost out on the payments, worth up to £300, after eligibility for the pension top-up was tightened last year.

Speaking at Prime Minister's Questions today, Sir Keir said ministers would look again at the threshold to allow "more pensioners" to qualify again.

He did not provide further details, adding that the changes would be made at a future Budget.

But he added the government would only "make decisions we can afford".

The decision to mean-test the winter fuel allowance was widely blamed for Labour losing 187 council seats in local elections earlier this month – and suffering defeat to Reform at the Runcorn and Helsby by-election.

“I recognise that people are still feeling the pressure of the cost-of-living crisis, including pensioners,” Mr Starmer told the Commons.

“As the economy improves, we want to make sure people feel those improvements in their days as their lives go forward. That is why we want to ensure that, as we go forward, more pensioners are eligible for winter fuel payments.”

Conservative Party leader Kemi Badenoch challenged Sir Keir over the “U-turn”, calling him “desperate”.

She later said it was a “joke” for Sir Keir to say he was reacting to an improving economy, after figures showed inflation in April rocketed to its highest level in more than a year.

She would like to see pensioners on £11,000 to £15,000 a year getting winter fuel payments.

“If he’s waiting until the budget it means that people are going to lose their winter fuel payment for another year,” she added.

In response, Stormont Communities minister Gordon Lyons called for the “full” reinstatement of the Winter Fuel Payment – and a rethink of the wider welfare reforms recently announced by the Labour government.

Minister Lyons welcomed the statement by the Prime Minister on increasing the number of pensioners who are eligible for the Winter Fuel Payment – but said any such move would not go far enough.

Earlier this year he provided a £100 fuel support payment to Northern Ireland pensioners affected by the Labour government changes to eligibility. He welcomed the government’s realisation that a mistake had been made, adding that a full reinstatement of the Winter Fuel Payment was now required.

Minister Lyons said, “My opposition to restricting eligibility for the Winter Fuel Payment has been absolute and I am glad that the Labour government has now recognised that error.

“This mistake can only be fully rectified by the reinstatement of a universal Winter Fuel Payment that protects all pensioners.

“I appreciate the welfare bill must be reduced but believe this can be done by supporting people into work, not by targeting our older generation.”

He called for “immediate clarity” from the government and reconsideration of the Labour proposals to reduce the welfare bill by cutting the health element of Universal Credit and making changes to Personal Independence Payment (PIP) eligibility.

East Antrim DUP MP Sammy Wilson welcomed the move, describing the cut as “a disgraceful attack” on many pensioners which had caused “real fear and hardship” as energy bills remain high.

He noted that DUP Minister Lyons stepped in with support for those who lost their payment, but said this was only ever going to be “a one-off” due to budget constraints.