“Millionaires shouldn’t get subsidies”: UK government plans changes to heating payments

“Millionaires” should not get “subsidy for their energy bills from the Government”, a Treasury minister has suggested.

Darren Jones has said that winter fuel payments will “still be targeted to those that need it the most”. 

Sir Keir said at Prime Minister’s questions last week that he wants to restore the payments to more pensioners, following pressure from campaigners, signalling a partial U-turn on one of Labour’s first announcements in Government.

He claimed that the UK’s improving economic prospects could allow for the move at the next fiscal event.

The partial U-turn came as ministers are continuing to face calls to scrap the two-child benefit cap.

Speaking to Sky News on Thursday evening, Chief Secretary to the Treasury Mr Jones was asked about Reform UK’s commitments on both the winter fuel and benefit cap policies.

“All of those things cost money,” Mr Jones said.

“It’s right that we set out the detail and how we’re going to pay for those in a proper and orderly way.”

He added: “We’re sticking to the principle that millionaires shouldn’t be getting subsidy for their energy bills from the government, so winter fuel payments will still be targeted to those that need it the most.”

Mr Jones also touched on the Government’s approach to child poverty, telling the same programme that “we’re a Labour government we want child poverty to be falling in this country, not rising”.

“Of course, we want to help families lift themselves out of poverty.”

Last summer, Rachel Reeves announced that the previously universal winter fuel payment would be means-tested. The policy was blamed for the party’s collapse in support since last year’s general election, and campaigners were challenged about it on the doorsteps during May’s local elections.

Reform UK leader Nigel Farage confirmed earlier this week that his party would support scrapping the two-child benefit cap and also reverse the winter fuel payment cuts.

Sir Keir said he is looking at “all options” to drive down child poverty when asked if he would like to get rid of the two-child benefit cap on Thursday.

Speaking on a visit to the North West, the Prime Minister said: “There isn’t a single bullet, but I’m absolutely determined that we will drive this down, and that’s why we’ll look at all options, always, of driving down child poverty.”

Conservative leader Kemi Badenoch has accused the Labour and Reform leaders of asking people to fund “unlimited child support for others” by scrapping the two-child cap.

Writing in the Daily Mail, she said that the Conservatives are the “only serious party of sound money”.