Labour MPs have warned the decision to rob millions of pensioners of support helped cause a massive local election defeat

Sir Keir Starmer

“As a result of those decisions – I mean, they were taken specifically with the purpose of stabilising the economy. And I think we’re seeing the evidence of that in the interest rate cuts and the growth figures. So, they were difficult decisions but they were right decisions.”

The suggestion that economic stability has now been achieved could allow the Prime Minister to argue that means-testing was essential last year but is no longer required.

Sir Keir’s advisers believe the policy is so unpopular that it is worth carrying out a humiliating rethink and an announcement could be made as soon as next month.

It comes after anxious Labour MPs warned Number 10 that anger over means-tesing, which robbed millions of pensioners of money to help them stay warm in winter, contributed to Labour’s huge losses in local elections earlier this month.

And focus groups have reportedly reassured the Prime Minister that voters will back a change of heart.

The most likely option is to increase the means-testing threshold, currently £11,809 for most single pensioners, so that far more people are eligible for the payment. Another option is to scrap means-testing entirely and return to a situation where all pensioners are usually eligible for the money, but this is less attractive because of the huge cost.

An announcement could come as soon as the Spending Review on 11 June. Alternatively, the change could be announced in Rachel Reeves’ Budget statement in the autumn.

The move would be a particular embarrassment for Chancellor Rachel Reeves, who announced the means-testing policy last year. However, Sir Keir is said to be determined to protect the Chancellor and will make it clear she has his full support.

More than nine million pensioners no longer receive payments of up to £300 as a result of means-testing, which means only people eligible for pension credit usually qualify for the benefit.

The Government has admitted the policy will plunge 100,000 pensioners into poverty. Increasing the threshold at which payments are made would significantly cut this number even if wealthier pensioners continued to be excluded. has opened the door to an embarrassing u-turn over means-testing Winter Fuel Payments amid fears that furious voters are abandoning Labour over the policy. The Prime Minister declined to rule out a reversal when he spoke to the Daily Express last night – and suggested the economy had improved since the “difficult decision” to cut payments was made last year.

Sir Keir was asked about reports he is holding talks with aides about changes which could mean scrapping means-testing entirely or increasing the threshold so that more pensioners are eligible for payments of up to £300. He said: “Look, we took difficult decisions, but the right decisions, at the budget, including the decision that we took on winter fuel.