LONDON — The British government on Monday reversed its unpopular plan to end winter home heating subsidies for millions of retirees.
British Prime Minister Keir Starmer had signaled the u-turn last month after a loud outcry from the public and some members of his Labour Party who thought the relatively modest 1.5 billion-pound ($2 billion) savings were too politically costly.
Treasury chief Rachel Reeves, who canceled the payment for home heating on all but the poorest retirees after Labour came to power last summer, said the benefit would be restored to 9 million people, or three-quarters of pensioners, in England and Wales whose incomes are below 35,000 pounds ($47,500). Reeves said the move was necessary last year because the previous Conservative government had left public finances in a dire state.
“Targeting winter fuel payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government,” Reeves said. “It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.”
The payments are worth between 200 and 300 pounds ($271 and $406) a year. The reversal will cost the government 1.25 billion, Reeve said.
Canceling the payments for most people last winter was blamed for contributing to Starmer’s swift decline in popularity after his party came to power in a landslide. He was blamed for punishing elderly people on limited incomes who struggled to make ends meet during a cost-of-living crisis.
Labour fared poorly in local elections in England last month, with many party representatives blaming the removal of the winter fuel payment.
Kemi Badenoch, leader of the main opposition Conservative Party, quickly pounced on Starmer’s about-face.
“Keir Starmer has scrambled to clear up a mess of his own making,” she said. “This humiliating u-turn will come as scant comfort to the pensioners forced to choose between heating and eating last winter. The prime minister should now apologize for his terrible judgment.”
