Doncaster MP Ed Miliband defends Labour U-turn on winter fuel payments

Doncaster MP and Energy Secretary Ed Miliband has defended Chancellor Rachel Reeves' original decision to cut winter fuel payments and yesterday’s partial Labour U-turn over the move.

He said the chancellor would not apologise for withdrawing the payment from more than 10 million pensioners last year, arguing that she had to take measures to stabilise the economy.

In an interview with the BBC, Doncaster North MP Mr Miliband said the decisions she had taken last year had created "room for manoeuvre" enabling her to extend the payment to more pensioners this coming winter.

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Mr Miliband said the move would cost "a relatively small amount of money" and would be accounted for in the Budget but the Conservatives said ministers did not know how it would be funded.

Ed Miliband has defended Labour's U-turn over the winter fuel payments.placeholder image
Ed Miliband has defended Labour's U-turn over the winter fuel payments.

Last July, the government announced it would be withdrawing the payment, worth up to £300 per year, from more than 10 million pensioners.

It meant that last winter only those receiving pension credit or another means-tested benefit would be eligible - an estimated 1.5 million individuals.

However, following pressure from charities, unions and its own backbenchers, the Labour government announced it would partially reverse that decision, expanding eligibility to more than three-quarters of pensioners.

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Under the revised policy, nine million pensioners in England and Wales with an annual income of £35,000 or less will receive the payment this winter.

Asked if the government would apologise, Miliband said Reeves had not wanted to make the original cut, but had to act to stop the economy "going off a cliff".

He argued that since last summer, the nation's finances had stabilised and the government had "heard the strength of feeling" from voters.

He said the government was "sticking by the principle" that the wealthiest pensioners should not get the payment, but it was right to expand the numbers who would receive it.

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Pressed on how the government would pay for the change, which is expected to cost around £1.25bn, Miliband said the details would be set out in the autumn Budget.

The government has argued that the change would "not lead to permanent additional borrowing" due to an improving economy.

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