Last year, chancellor Rachel Reeves announced that the previously universal payment would become means-tested, leaving around nine million pensioners in England ineligible. The move was expected to save the Government £1.5bn a year.

After rumours that the policy would be reversed, Keir Starmer told the House of Commons that he hoped to ensure more pensioners were eligible as the economy improved. 

During Wednesday’s prime minister’s questions, Starmer said his government recognised people were feeling the pressure of rising costs and wanted them to benefit from an improving economy. 

“That is why we want to ensure that more pensioners are eligible for winter fuel payments as we go forward,” he added.

The Winter Fuel Payment scheme, introduced in 1997, currently provides between £200 and £300 towards heating bills for those born before 23 September 1958. However, it has frequently been criticised for being poorly targeted to reduce fuel poverty. 

Critics of the Government’s changes noted the continuing rise of the energy price cap, saying the move would force those close to the threshold to choose between heating or eating.

The reversal comes just weeks after local council elections saw Labour lose 187 councillors and one council, while Reform UK won 677 council seats and took control of ten local authorities. Reform UK leader Nigel Farage had labelled the winter fuel payment cuts “vindictive”.