What is the winter fuel payment and who is still able to claim it?

Controversial plans to cut winter fuel payments for millions of households are still likely to go ahead, despite a defeat for Keir Starmer at the Labour Party conference.

Chancellor Rachel Reeves announced in July she would reduce access to the benefit as part of a package of measures Labour claim will plug holes in public finances.

The proposals - which have already been approved by the House of Commons - were also subject to a vote tabled by the Unite union at the Labour Party conferece in Liverpool.

But while the result of the non-binding vote will be a dent in Starmer's authority within the party, it is unlikely to derail the scheme.

Under current proposals, while the cash will still be on offer, it will no longer be handed out as a universal benefit. Instead, potential recipients will now face stricter eligibility criteria.

The scheme has faced criticism in previous years over its wide-ranging remit, which at one point saw expats in warm countries such as Spain able to claim the same money as families in the coldest reaches of Scotland.

While such loopholes have since been closed, the benefit has remained in the crosshairs of some reformers who insist many recipients don't need the annual handout and who have called for funds to be re-directed elsewhere.

But others, such as the charity Age UK, have argued the changes as they are currently proposed could end up wrenching support away from some of those most in need.

Yahoo News explains the proposed changes to winter fuel payments:

What are winter fuel payments?

Introduced in 1997 by the last Labour government under Tony Blair, the scheme currently offers annual tax-free payments of up to £300.

The benefit was intended to tackle fuel poverty among pensioners, who were thought particularly vulnerable due to fixed income from their pensions and a greater need for heating at home.

Who is eligible?

As things stand, payments are offered on a universal basis for people over the state pension age and living in England or Wales.

Separate schemes operate in Scotland and Northern Ireland.

A basic rate payment is on offer to anyone claiming a state pension, with further top-ups on offer to households claiming other benefits, such as pension credit or universal credit.

Payments can also increase with age and most people are enrolled for the benefit automatically – although some campaigners, such as Age UK, have estimated almost one million people could be eligible but are not claiming the cash.

You can check whether you qualify here.

How much does it cost and what changes are Labour making?

According to House of Commons figures, the annual bill for winter fuel payments has stood at almost £2bn in recent years, although this figure has also been falling due to changes to the state pension age.

Current proposals aim to change eligibility rules so only pensioners on means-tested benefits will qualify for it this winter.

The overhaul planned by the government is expected to mean 1.5 million people will be eligible for the payment this winter, down from 11.4 million when the payment went to all pensioners.

The chancellor has estimated the move would save the Treasury £1.4bn this year and £1.5bn next year.

What has the reaction been?

The move to cut payments has been met with strong opposition from inside and outside the Labour Party - although a threatened revolt by MPs over the measure largely failed to materialise.

The party's annual conference in Liverpool saw protests over the issue, including by the trade union Unite, whose general secretary Sharon Graham accused the government of "picking the pockets of pensioners".

Ahead of the conference vote on the motion she sponsored calling on the party leadership to reverse the cut, titled 'An Economy for the Future', and called for taxes to be raised before benefits were cut.

She added: “People simply do not understand – I do not understand – how our new Labour government can cut the winter fuel allowance for pensioners and leave the super-rich untouched.”

Keir Starmer has admitted himself the policy is "unpopular", but used his keynote conference speech to promise "light at the end of the tunnel".

Paul Farmer, chief executive of Age UK, estimates two million people most in need of the benefit could be excluded from it under new plans.

"There’s no doubt that we need better cohesion between the benefits system and health and social care services," he said.

"And there’s equally no doubt that this can’t happen before the leaves disappear from the trees and the frosts set in."

Citizens Advice, which provides consumer guidance, accepted issues with the current winter fuel payment scheme, but has called for more far reaching reform.

Gillian Cooper, its director of energy policy, said: “The current winter fuel payment is not well targeted and is too low to make a real difference to pensioners who need help most.

"As we go into this winter, we need to see targeted support with energy bills for all those in desperate need, including low-income families and pensioners."

Why is Labour sticking with it?

The chancellor has remain bullish in the face of outcry over her plans to overhaul the scheme.

Ignoring calls to reverse the planned cut, Rachel Reeves has argued it will save the government billions and that changes to state pensions will leave many households better off.

While the conference vote is a blow to the government's authority among the unions and rank-and-file Labour Party members, it is unlike to see the policy reversed following the successful House of Commons vote.

"Parliament has already voted on this a couple of weeks ago," Reeves said, "and there was overwhelming support for restricting winter fuel payments to just those pensioners on pension credit.

“I think the reason why, in the end, MPs did vote that way is because of a recognition that the [pension] triple lock will protect pensioner incomes.”

Labour has also said a campaign to increase the take-up of pension credit would help those most in need. According to the Department for Work and Pensions, 880,000 eligible pensioners are missing out on pension credit, which on average amounts to £3,900 a year.

This already looks to be bearing fruit, with a reported 13,000 applications for Pension Credit in the last week - a “sharp increase” on last year.

Starmer used his speech to conference to promise “every pensioner will be better off with Labour”, but that the cut was necessary to fill a "black hole in our public finances".

What happens next?

Although a defeat for Keir Starmer, the conference vote is highly unlikely to bring a change in policy.

The vote to conference was non-binding and the measure has already been passed by the House of Commons.

However, it could prompt ministers to take a more cautious approach over any future cuts to public services they may be considering, particularly in light of the key role played by one of the UK's biggest trade unions in the conference defeat.