U-turn on winter fuel sparks calls for end to child benefit cap

LABOUR'S U-TURN ON THE WINTER FUEL ALLOWANCE HAS SPARKED CALLS FOR THE END TO THE TWO-CHILD BENEFIT CAP - WHICH IS BLAMED FOR DRIVING HUNDREDS OF THOUSANDS INTO POVERTY RORY POULTER

12:19, 22 May 2025 As the UK government signals a dramatic U-turn on its winter fuel payment policy, speculation grows that further contentious welfare cuts could be reversed in the near

future. Many advocates and lawmakers are prioritising the demand to abolish the two-child benefit cap, a controversial policy held accountable for pushing numerous families below the poverty

line. This apparent shift appears to have come in response to an intense backlash following a policy move to revoke the winter fuel allowance for a substantial number of elderly people.

Prime Minister Sir Keir Starmer recently hinted at the possibility of restoring the winter fuel payment, citing an assumed improvement in the UK's economic landscape. As a result of

this decision, there is increased pressure for more comprehensive changes to the nation's welfare policies. Notably, Gordon Brown, a previous Labour Prime Minister, publicly condemned

the two-child cap on benefits, advocating for its abolition. During his appearance on the ITV Peston programme, he stated: "The cost-effective way of getting more children out of

poverty... is abolishing the two-child limit." A high-ranking No 10 source also provided a comment to the Guardian, stating: "We're open to adapting policy as the

circumstances allow. So when there's an opportunity to make people better off, which is our central purpose, then we're going to take it." Article continues below Labour

insiders are debating a change of policies that might see the axe swinging at the two-child benefit cap, putting the brakes on slashing health and disability benefits, and changing the

Pension Credit threshold to widen access to payments and other associated benefits. Sir Keir Starmer dropped a hint about changing the Winter Fuel Allowance during PMQs, he said: "We

want to make sure people feel those improvements as their lives go forward. That is why we want to ensure that as we go forward, more pensioners are eligible for winter fuel payments."

He added: "As the economy improves, we want to take measures that will impact on people's lives, and therefore we will look at the threshold, but that will have to be part of the

fiscal event." The government’s move to means-test the previously universal winter fuel payments — a cut worth £1.5bn — has been widely blamed for Labour’s declining poll numbers. Now,

civil servants are racing to draft a new system that could expand eligibility without triggering ballooning costs. Gordon Brown has suggested giving the allowance, worth £100-£300, back to

all pensioners except those on higher incomes who pay the 40% tax rate. But time is tight. Tory leader Kemi Badenoch warned: “It will be too late if ministers wait until the autumn budget…

they will lose this year’s entitlement.” Article continues below Meanwhile, eyes are turning to June’s spending review, where ministers are expected to unveil a £750m child poverty package.

That could include expanded free breakfast clubs, more generous child benefit, or broader access to free school meals.