British government backtracks on fuel subsidy cuts

In what the opposition has called a "humiliating reversal," the UK government announced on June 9 that it will not go ahead with the controversial cuts to Winter Fuel Payments for millions of pensioners, bowing to intense public pressure.

UK Chancellor Rachel Reeves was forced to announce a radical policy shift, confirming that the Labour government has "listened" and will not implement the planned cuts to pensioners' winter heating payments. The original measure sought to limit payments only to those on lower incomes receiving pension credit, but the reaction was so negative that it forced the government to reverse course.

Instead of a drastic cut, the government has set a new threshold. From now on, pensioners with a household income of up to £35,000 per year will continue to receive the Winter Fuel Payment, which amounts to £200 (or £300 for those over 80). It is estimated that nearly 9 million pensioners will benefit from this support, which will cost the public purse £1.25 billion.

"We've heard the legitimate concerns of pensioners who, while not living in extreme poverty, rely on this assistance to make ends meet. The improving economic outlook allows us to make this adjustment," Reeves said.

Suggested description: A graphic explaining the before and after of the fuel subsidy policy, or an image of a pensioner at home during the winter.

Despite the reversal, the opposition has not missed the opportunity to attack the government. Conservative spokesperson Kemi Badenoch called the decision a "humiliating reversal" that demonstrates "chaos and a lack of a clear plan." The Liberal Democrats and the Scottish National Party (SNP) also criticized the government's handling.

For their part, think tanks such as the Resolution Foundation, while welcoming the aid, criticized the mechanism, pointing out that creating a "cliff" at 35,000 pounds could create unfairness and disincentives.

"It's an admission that they tried to take money from pensioners and were caught. It's not an act of generosity, it's an act of political panic." – Kemi Badenoch, Conservative Party.

Reeves assured that the cost of the measure will not require new borrowing and that details of how it will be financed will be revealed in the autumn budget. There is speculation that it could be funded through a "stealth tax," recovering money from higher-income pensioners through the tax system. The decision ends weeks of uncertainty and criticism, but leaves the government with the challenge of explaining how it will balance the books without creating new economic problems.