Number 10 has said scrapping the winter fuel allowance for all but the poorest pensioners is now “not happening”, after Sky News revealed the option was under live discussion between No 10, the Treasury and the Department of Work and Pensions as a way to claw back some taxpayer funds from the elderly.
The prime minister is expected to fight the next election on a pledge to keep the pension triple lock despite its spiraling costs, and has been looking at various options to cut back welfare spending as he looks to pave the way for pre-election tax cuts, while also remaining committed to the pensions triple lock at the next election.
One government figure told Sky News that while the option was part of conversations about how to find savings in the welfare bill, No 10 didn’t want to risk public speculation on such an “emotive” issue that had divided views across Whitehall.
“Mr Sunak was interested in the option, while the chancellor and work and pensions Secretary Mel Stride were less enthusiastic about means testing pensioner benefits,” according to one person familiar with discussions.
One source told Sky News No 10 believes officials in DWP or the Treasury leaked conversations around the winter fuel allowance in order to “kill it off”.
Government figures earlier told Sky News the prime minister “understands the politics” of the triple lock and knows he has no option but to recommit to it, given the importance of the pensioner vote to his campaign and the Lib Dem recommitment to the policy in recent days.
Labour is also expected to maintain the triple lock in its manifesto.
But the prime minister is also trying to find ways to offset the cost of the commitment, with officials drawing up proposals to remove the annual winter fuel allowance from all pensioners except those who receive pension credit.
“Rishi understands the politics of the triple lock, although he thinks it’s far from fair from an intergenerational point of view, so he’s trying to redress…
