Moment Labour minister refuses to rule out major winter fuel cut U-turn

A senior Treasury minister refused to rule out a major U-turn on this evening, amid widespread reports Rachel Reeves may finally cave in on the hated cut. Appearing on Sky News, Chief Secretary Darren Jones was asked directly whether the Government is bracing for a reversal of the policy.

He nakedly dodged the question, simply replying: "I'm midway through the Spending Review at the moment, so I can't tell you anything about it until I've done it." I promise to come back to the studio to talk to you on June 11 and after that when we've published the details. As you would expect I'm not going to give a running commentary on private negotiations in government. The policy that exists today is the police that stands."

He also refused to confirm on deny reports in the Sunday Times about whether the Government is running focus groups to poll how hated Ms Reeves cut the vital pensioner lifeline is.

Mr Jones simply said: "I don't know, I don't run focus groups."

Host Sophy Ridge pointed out that the top minister's non-denial is a different answer to one other ministers have regurgitated in recent weeks.

She said: "For me, the journalist in me, the ears prick up and you start thinking that something's moving."

Asked if he could give worried pensioners reassurance on the issue, the chief secretary replied: "I empathise with it and I understand, and that's why it's important you do these things in the proper way."

Last Friday the PM 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.

"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."

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-testing, 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.