Labour 'is reviewing its winter fuel payment for thousands of Brits' after backlash from voters during elections

Downing Street is considering reinstating the winter fuel payment for thousands of pensioners in a move to restore public goodwill, according to reports.

Senior figures in Sir Keir Starmer's circles have allegedly been discussing how to simmer public anger towards the Labour Government in the wake of their local election thumping to Nigel Farage's Reform.

While any moves would not see a full reversal of the cuts made last July, sources at No.10 told The Guardian they are exploring the option of increasing the £11,500 income cap currently set for the payment.

But some Cabinet ministers believe the controversial cuts - one of the government's first major decisions after being elected - have already cost them the next election.

One minister told the newspaper: 'It comes up on the doorstep all the time. Winter fuel will lose us the next election, it was a terrible mistake. But it's probably too late for a U-turn now.'

Many Labour MPs have criticised the decision since it was introduced, saying it was now driving their voters - particularly elders - into the hands of Reform.

And after Labour lost one of their safest seats in the Runcorn and Helsby by-election to Nigel Farage's party, their fears appear to be materialising.

Another source said: 'People are saying we haven't done enough for them on the cost of living, and winter fuel is an example of it going in the wrong direction.'

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Senior figures in Keir Starmer's circles are allegedly considering reinstating the winter fuel payment for thousands of pensioners in a move to restore public goodwill

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But some Cabinet ministers believe the controversial cuts - announced by Rachel Reeves last year - have already cost them the next election

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The move comes in the wake of Labour's local election thumping to Nigel Farage's Reform

A second added: 'The winter fuel cut has become totemic and talks to us being on the wrong side of working people. We need to show that's not the case.'

Insiders are also alleged to believe that any changes to the policy could spell danger for Rachel Reeves, who removed the payment of up to £300 from 10 million pensioners. 

Angry MPs furious at the cuts and future plans to trim £5billion worth of benefit payments, are said to be pushing the government for change before a vote on 'stage one' of its welfare plans in early June.

The newspaper reports that the government may come back for 'stage two' this autumn, but there are concerns that any more cuts would spark further in-fighting.

Downing Street figures allegedly acknowledge the growing concern both in the party and among voters and said they were in discussions over the issue.

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Insiders are also alleged to believe that any changes to the policy could spell danger for Rachel Reeves, who removed the payment of up to £300 from 10 million pensioners (Stock Image)

Did Labour make a mistake cutting winter fuel payments?

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No

But they are said to be insistent that this would not a be a formal review, and no kneejerk response would be made after election results.

They are also alleged to say that any changes made would be officially announced in the a broader financial package.

A Downing Street source told The Telegraph that the report was 'incorrect and the policy would not be reviewed'. 

MailOnline has approached the Department for Work and Pensions for comment.