Rachel Reeves says she's 'listening' to concerns over the 'level' at which winter fuel payments are calculated

19 May 2025, 20:00 | Updated: 20 May 2025, 09:00

Rachel Reeves has told LBC that she's "listening" to concerns over the "level" at which winter fuel payments are calculated.

Speaking exclusively with LBC's Shelagh Fogarty, the Chancellor was pushed on her repeated use of vague language when it came to reducing the payment threshold.

It marks the first time the Chancellor acknowledged she was looking seriously at the proposed threshold change, amid murmurs from Westminster of a potential softening of proposals within weeks.

Pushed by Shelagh on whether there was "real listening going on" in response to concerns voiced by Labour MPs on the level of public outrage on the doorsteps of Britain, Reeves insisted: “we’re always listening”.

It follows news that the UK economy grew faster than expected following the release of the latest GDP figures last week, marking the highest GDP rate since the first quarter of 2024 when the economy jumped by 0.9%.

Read more: Reeves says growth increase ‘really welcome’ as UK economy grew more than expected in first three months of 2025

"All your listeners will recognise the challenge that this government face - that I faced when I became chancellor last year, with a huge gap in the public finances," Reeves told Shelagh on Monday.

Watch Again: Shelagh Fogarty is joined by Chancellor Rachel Reeves | 19/05/25

"And we had to take quick action to avoid getting into some of the previous financial difficulties under the previous conservative government under Liz Truss.

"We always listen to our voters, to our constituents, and I do understand the concerns that some people have about the level at which the Winter Fuel Payment is removed," she told Shelagh.

Reeves added: “We’re always listening, we’re always listening with these things. I’m not going to set out any policy today, but of course we are always listening”.

GDP figures, released were an opportune moment to question the chancellor on the cost of living crisis and the cuts to the winter fuel payment, as the government is facing a potential rebellion over the plans.

"I recognise that the cost of living crisis does continue for many people," she said.

"But last month we were able to increase the basic state pension, and the new state pension."

Liz Kendall questioned as thousands more pensioners set to be in poverty due to winter fuel payment cut

She added: "But I do understand that we need to bring energy bills down. That's why we are investing in our energy security, building homegrown energy here in Britain to get those bills down for working people and also for pensioners."

In the days that followed the winter fuel payment announcement last September, the Chancellor insisted the economic "road ahead is steeper than harder than expected" as vowed to stick by the winter fuel payments cut during her party conference speech.

She braced millions of people for “a budget to fix the foundations. A budget to deliver the change we promised. A budget to rebuild Britain” -

“We said we would not increase taxes on working people, which is why we will not increase the basic higher or additional rates of income tax, national insurance or VAT,” she said at the time.