The government has confirmed a major winter fuel payment U-turn, restoring benefits for millions of pensioners. Nearly nine million older adults in England and Wales will now qualify for up to £300 in energy bill help.
Chancellor Rachel Reeves said the decision came after “listening to concerns.” However, critics like Conservative leader Kemi Badenoch called it a “humiliating reversal.” The change follows backlash over Labour’s earlier cuts to the program.
Under the winter fuel payment U-turn, households earning £35,000 or less will receive the benefit. Single pensioners under 80 get £200, while those over 80 receive £300. Couples sharing a home split the payment.
The Treasury estimates two million higher earners will be excluded. Those above the threshold can opt out or repay the money later. Bob Pritchard, 78, “will make a lot of difference” after his struggles last winter.
Labour faced heavy criticism for restricting payments to pension credit recipients last year. Charities warned the move hurt middle-income retirees. Now, the winter fuel payment U-turn aims to address those concerns ahead of winter.
Reeves insisted the £1.25bn cost won’t increase borrowing. Instead, economic improvements allow expanded eligibility. Experts, however, warn of future tax hikes or spending cuts to offset the expense.
While campaigners welcomed the change, some demand broader fixes. Simon Francis of the End Fuel Poverty Coalition urged more aid for struggling households. Opposition leaders mocked the policy shift as a political retreat.
In Scotland and Northern Ireland, different systems remain. Scots will wait until 2025 for a new £100 benefit, while Northern Irish pensioners got a one-off £100 payment last year.
The winter fuel payment U-turn precedes Wednesday’s Spending Review, where the government will detail budgets. Analysts warn of “ugly” fiscal choices ahead. For now, millions of pensioners can expect relief—but debates over costs and fairness continue.
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