Sir Keir Starmer recently announced an extension of winter fuel payments for pensioners, attributing the decision to an improving economy rather than political pressure. This move comes after an initial cut in payments last year, which faced backlash from various groups.

The UK's economic growth in the first quarter of 2025 exceeded expectations, but analysts predict a slowdown in the near future. Despite this, Starmer defended his choice to expand the payment, which can reach up to £300 annually, to more pensioners this winter.

Speaking on BBC Radio 2, Starmer explained that the decision to withdraw payments from all but the neediest pensioners last year was necessary to address the country's financial challenges. However, the recent reversal in policy was not due to political pressure, as claimed by the opposition.

Under the revised plan, over nine million pensioners in England and Wales with an income of £35,000 or less will receive the payment. This change follows demands from charities, unions, and Labour MPs to broaden eligibility, which was limited to a smaller group last winter.

Starmer emphasized that tough decisions were made last year to address a significant budget deficit. With improved economic indicators and trade agreements, the government could now afford to raise the eligibility threshold for the winter fuel payment.

Energy Secretary Ed Miliband defended Chancellor Rachel Reeves' decisions, stating that the cost of the extended payment could be managed within the budget. The government assured that the change would not result in additional borrowing.

While critics argue that the U-turn is a response to political pressure, supporters believe it is a necessary step to assist pensioners facing financial challenges. The Institute for Fiscal Studies and the Resolution Foundation have differing views on the impact of the extended payment on poverty levels.

The government clarified that pensioners do not need to take any action to receive the payments, and an opt-out system will be available for those who prefer not to participate.