Rachel Reeves told she’s forgotten 2 big groups in winter fuel U-turn | Personal Finance | Finance

A charity has called for “further action” after the Chancellor reinstated the winter fuel payment for more than nine million pensioners. In a partial £1.25billion U-turn, Ms Reeves announced plans to widen the eligibility criteria for the benefit this winter, allowing all state pensioners with an income of £35,000 or under to receive the payment.

It follows backlash against last year’s decision to cut the eligibility criteria to just state pensioners who receive means-tested benefits, such as Pension Credit, controversially stripping 10 million of the support. However, the charity Citizens Advice warns the Chancellor hasn’t gone far enough to support those in need.

Tom MacInnes, director of Policy at Citizens Advice, said: “It’s good news that the Government is returning winter fuel payments to low-income pensioners, without needing to access Pension Credit first. This will provide straightforward, vital support to nine million pensioners this winter.”

However, he pointed out that two groups have been forgotten. He said: “We’ve made the point repeatedly that additional support should be targeted at those who are struggling most with energy costs, like households with children, particularly single-parent families, and disabled people. These groups will continue to face significant financial stress unless further action is taken.”

He added: “We hope the Government will now take stock of its other proposals and rethink the huge cuts to disability benefits, which will cause significant hardship for disabled people and have severe consequences for their children.”

The Government plans to tighten the eligibility rules for Personal Independence Payment (PIP) from November 2026. Among a raft of benefit reforms announced during the Spring Budget, proposed changes mean claimants must score a minimum of four points in at least one daily living activity to qualify for the daily living component.

This change could lead to more than half of disabled people with daily living needs in some constituencies losing this benefit when their claims are next reviewed.

From April 2026, the health element of Universal Credit for new claimants will be cut from £97 to £50 a week and then frozen until 2030. Existing claimants will see their payments frozen, reducing their real value over time. Critics warn these cuts will deepen poverty among disabled people.

Mr MacInnes continued: “We also strongly urge ministers to go further and lift more children out of poverty by scrapping the two-child limit and benefit cap.”

Education Secretary Bridget Phillipson has said the Government is looking to scrap the two-child benefit cap following criticism that the policy, which prevents most families from claiming means-tested benefits for any third or additional children born after April 2017, had pushed people into poverty.

However, Ms Phillipson has said removing the cap would “cost a lot of money,” so it’s unclear if and when it will be addressed.