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Winter fuel cut "U-turn with the handbrake on could mend some damage, but it once again exposes Labour’s economic fumbles"

ended 21. May 2025

When asked by Kemi Badenoch during PMQs a short while ago if he is “planning to U-turn on winter fuel cuts”, PM Keir Starmer responded that, as the economy improves, he will consider measures that will improve people's lives and will “look at the threshold — but that will have to be part of a fiscal event". Newspage asked business owners and the UK public for their views, below.

6 responses from the Newspage community

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Scott Gallacher
Director at Rowley Turton
If this signals a U-turn on the winter fuel payment cuts, it’ll be welcome news for pensioners — but it raises a big question: who foots the £1.4bn bill? Rachel Reeves had already counted that money towards balancing the books. Employers — particularly small businesses already reeling from National Insurance hikes — may feel aggrieved if they’re expected to pick up the tab. The Government must be careful not to shift the burden from pensioners to job creators. And flip-flopping on such a sensitive issue isn’t a good look — it smacks of political naïvety. Why take all the flak for scrapping the benefit, only to reinstate it later?
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
The Prime Minister's squirming half-retreat on winter fuel payments perfectly encapsulates Labour's governing philosophy: campaign as centrists, govern as incompetents. Having callously stripped £300 from 10 million pensioners, many surviving on barely £12,000 pa with sanctimonious lectures about "difficult choices," Starmer now dangles a partial restoration as if conferring royal favour. This shameless volte-face comes after his MPs marched dutifully through lobbies to reject a Tory motion protecting the elderly, with Reeves insisting the Treasury cupboard was catastrophically bare, a narrative that's mysteriously evolved now that focus groups have registered voters' disgust. The timing is exquisite, too. An announcement after autumn's mild spell but before winter bills arrive, maximising political benefit while minimising actual expenditure. It joins Labour's expanding collection of U-turns from two child benefits to defence spending, planning reform and HS2 to name but a few.
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Gabriel McKeown
Political & Economics Writer at Sad Rabbit - Substack Newsletter
Like a caterpillar turning into a butterfly, Keir Starmer’s political metamorphosis is in full swing, transforming from an object of hate and derision, into a would-be populist hero, representing the interests of the many, not just the few. This is one of many recent U-turns, spanning migration, Brexit and now social support. Yet this sudden about-face is hugely transparent, and comes after disastrous performance in by-elections, and rumours swirling that his time as party leader could be on the horizon. For many, this U-turn is too little too late, and it wouldn’t be hugely surprising if the U-turn was U-turned once again this winter, ready to punish a few more pensioners.
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Editor
Tony Redondo
Founder at Cosmos Currency Exchange
This U-turn with the handbrake on could mend some damage, but it once again exposes Labour’s economic fumbling. This is another Starmer flip-flop and political pivot under pressure and one that acknowledges the local council results drubbing at the hands of Reform UK. Pensioners, hit by cuts since July 2024, may regain £100-£300 yearly, easing 3.5% inflation woes. Labour MPs in Red Wall seats may see voter relief, but the delay risks further alienation. Critics will call Starmer out of touch, noting the 0.75% growth economy’s strain on 10 million pensioners, though fiscal hawks will warn of budget pressures. Political analysts see this as a desperate bid to rebuild trust, but the timing, tied to a fiscal event, frustrates those needing immediate help.
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Legend
Jenny Blyth
Small business owner at Storm in a Teacup Gifts
As soon as a PM announces a U-Turn you can feel the ground begin to shake. I had such faith in this new government but having to ‘U-Turn’ on such a controversial topic stinks of ‘we made a mistake’. At least have the decency to say we got it wrong. It’s too late to brazen this out now. You were given the golden opportunity, the country were behind you and now brick by brick it’s starting to fall. What comes next is my worry.
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Keith Budden
Managing Director at Ensurety
In some ways, it's a clever ploy. Dangle the possibility that you COULD change your mind, show that you're listening (to your own backbenchers as much as the general public), and hopefully you can save your own skin. If, come the Autumn Budget, they haven't found a way to find the headroom to reverse the winter fuel payment cut, he can legitimately say "Check Hansard, I never said I WOULD reverse it". So if I want to be kind to Starmer I could take the view "ok, he's flip-flopping but at least he's a better negotiator than Donald Trump (who flip flops then proudly tells the world that flip-flopping was his plan all along).