- Chancellor Rachel Reeves has reversed the decision to scrap winter fuel payments for millions of pensioners, a move estimated to cost the Treasury £1.25bn.
- Approximately 9 million pensioners who lost the payments last year will have them reinstated if they qualify for the state pension on incomes of £35,000 or less.
- The U-turn follows a significant political backlash and criticism, including Labour's poor performance in the Runcorn by-election and local elections.
- Opposition leader Kemi Badenoch called the reversal a "humiliating U-turn" while Liberal Democrats leader Sir Ed Davey emphasised the hardship caused to pensioners.
- Pensioners with incomes above £35,000 will have the Winter Fuel Payment collected via PAYE or Self-Assessment, with an option to opt out of receiving the payment altogether.
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