Exclusive: Rachel Reeves Has Been Involved In Talks On Changing Labour's Winter Fuel Payment Policy
Rachel Reeves has been involved in talks on whether the government should change its policy on winter fuel payments, HuffPost UK has learned.
It comes amid growing anger among Labour MPs at the electoral damage being done by the policy.
They made clear their concerns to Pat McFadden, chancellor of the Duchy of Lancaster, at a meeting in parliament on Wednesday.
Several MPs pointed out that the policy, which saw 10 million OAPs lose their winter fuel payments, is being raised on the doorsteps by voters and is one of the main reasons why Labour were routed at last week’s local elections.
The chancellor announced last July that the payout would be means tested, with only those pensioners on incomes of less than £11,500 still receiving it.
No.10 this week denied a report in The Guardian that the government was rethinking the policy.
On Wednesday, Reeves denied that any climbdown was imminent, telling reporters: “That policy stands, it was necessary to put the public finance on a firm footing.”
However, HuffPost UK understands the chancellor has been involved in discussions in recent days on whether or not to change the policy.
Reform UK, which gained 677 councillors, have vowed to restore the payment if they win power.
Tory leader Kemi Badenoch also called on Keir Starmer to U-turn at prime minister’s questions on Wednesday.
She said: “Does the prime minister now admit that he was wrong to remove the winter fuel payment from millions of pensioners?”
The PM replied: “The number one job of this government was to put our finances back in order after the last government lost control. That is to deal with the £22 billion black hole that they left. Because of our action, we’ve stabilised the economy.”
However, senior government figures are discussing whether to amend the policy rather than completely reverse it.
One option being considered is reinstating the payments to all pensioners except those paying the higher rate of income tax.
It is understood that if the policy is changed, an announcement could come within days.
A senior Labour source said: “Some in No.10 are insisting we should stick with the policy, but others want it changed because of the political damage it’s doing.”
But a source close to Reeves said: “There are no changes. As Rachel said in interviews, the policy stands.”