Downing Street gives DWP winter fuel payment cut update | Personal Finance | Finance

September 10, 2024 3,172

Downing Street has confirmed that there was no discussion regarding the mitigation of the winter fuel cut at Monday’s Cabinet meeting. This follows a Home Office minister’s suggestion that the policy could be eased.

When asked if Dame Diana Johnson had been “freelancing” when she mentioned that ministers were considering mitigations, a No 10 spokeswoman responded: “I think it was promptly corrected.”

Labour’s plans to alter the eligibility for the Department for Work and Pensions’ (DWP) winter fuel payment have sparked controversy. It is projected that approximately 10 million pensioners will lose the £300 payment after the Chancellor announced that in future, it would only be given to those on low incomes who receive certain benefits and pension credit, rather than all pensioners.

Downing Street also confirmed that the whipping for the vote – where MPs are instructed by their party on how to vote on a policy – over the Government’s plans to abolish the winter fuel allowance for all but the poorest pensioners was not discussed at Cabinet. The spokesperson maintained that Cabinet ministers concurred on the importance of “fixing the foundations of our economy,” which they believe cutting the winter fuel payment would assist with , reports Chronicle Live.

Sir Keir Starmer informed his Cabinet this morning that “Unpopular decisions” will need to be made to “enable change for this country”.

A No 10 spokeswoman said: “The Prime Minister opened Cabinet by stating the importance of fixing the foundations of our economy in order to carry out the Government’s mandate for change. He said that, given the scale of inheritance, this would be difficult and that tough decisions are unpopular decisions, but it is the tough decisions that will enable change for this country. The Chancellor added that unless we grow our economy we will not see the improvements in living standards and public services that the country deserves, but that we must first restore the state of public finances.”

Chancellor Rachel Reeves further emphasised that “everything starts with stability, but investment and reform are key,” according to a briefing. Downing Street relayed agreement among ministers that while it was impossible to “reverse” deep-seated issues “overnight”, strides had been made, mentioning achievements such as establishing the national wealth fund, planning reforms, a new strategy for cooperation with local leaders, and the anticipation of an international investment summit this autumn planned to display UK excellence globally.