Treasury pushes for means-testing winter fuel allowance amid Tory resistance

The Treasury has long considered means-testing the winter fuel allowance as a potential cost-saving measure, but previous Tory chancellors have consistently rejected this idea. Recently, Rachel Reeves, in her first week as chancellor, was presented with a series of options to address a significant gap in public finances, including the controversial means-testing proposal, which could save £1.5 billion. This has sparked concern among Labour MPs, who feel unprepared to defend a policy not included in their manifesto. The quick decision by Reeves has left many questioning the rationale behind adopting a measure that has been dismissed in the past. Insiders suggest that the Treasury often pushes such proposals to new ministers, hoping to gain approval for long-standing preferences. The potential backlash from pensioners, who are a crucial voting bloc, adds to the complexity of the situation. As the autumn budget approaches, there are indications that the government may seek to mitigate the impact of this policy through alternatives like extending the warm homes discount. However, the overall sentiment among Labour MPs is one of unease, as they grapple with the implications of this policy shift and the need for a clear explanation from leadership regarding its adoption.