Winter fuel U-turn and a rift at the heart of government

After sustained speculation and a local elections drubbing, Keir Starmer announced today at PMQs that the government will be softening their policy on winter fuel. Whilst it won’t come into effect for some time, they have agreed to ensure that ‘more pensioners are eligible for winter fuel payment.’

This comes hours after a memo was mysteriously leaked to the Telegraph. It contains an extensive list of recommendations from Deputy Prime Minister Angela Rayner to the Treasury, including a set of eight tax rises such as reinstating the pensions lifetime allowance and altering dividend taxes. This amounts to a direct challenge to Rachel Reeves’s fiscal approach and preference for spending cuts.

The bigger story, of course, is what this says about feelings within Labour – it’s clearly not a happy family. Sources suggest that Angela Rayner is uneasy with the direction of travel in the Treasury and speaks for a silent majority in the Labour party who are fed up with defending controversial measures such as winter fuel. So who leaked this memo? Could Rayner be leading a mutiny? And will the U-turn on winter fuel placate the rebels?

Oscar Edmondson speaks to James Heale and Isabel Hardman.

Produced by Oscar Edmondson.