Chancellor Reeves Reinstates Winter Fuel Payments for Nine Million Pensioners

Chancellor Rachel Reeves has reversed most of the winter fuel payment cuts she introduced last year, restoring the allowance to nine million pensioners earning up to £35,000 annually. This U-turn comes after significant public backlash and electoral losses attributed to the unpopular policy, with opposition figures like Nigel Farage and Kemi Badenoch pledging full restoration. Despite the reversal, Reeves retains some means-testing, meaning around two million higher-income pensioners will still be excluded, sparking criticism that the government may shift costs onto other vulnerable groups. The decision has drawn mixed reactions, including from Scotland's Social Justice Secretary, who called the U-turn overdue but criticized the lack of consultation and clarity on funding. Reeves appears politically weakened, having to balance public pressure against fiscal sustainability, and faces the challenge of addressing the £800 million shortfall left by the scaled-back cuts in the upcoming budget. The controversy underscores ongoing tensions within the Labour government and highlights the political risks of austerity measures.