The reinstatement of winter fuel payments for millions of pensioners has been described as a “relief” to households across the North East.
Chancellor Rachel Reeves confirmed on Monday that all pensioners with an income of £35,000 or less will get the benefit this winter, following a huge backlash against Labour’s decision to limit the payments last year.
The partial U-turn will mean that nine million pensioners across England and Wales will automatically receive the payment of up to £300, the Government said.
Newcastle-based fuel poverty charity National Energy Action welcomed the reversal of a policy seen as a major cause of a collapse in Labour’s support since last year’s general election.
Matt Copeland, the charity’s head of policy and public affairs, said: “We welcome this new clarity and certainty concerning the Winter Fuel Payment, and it is a relief that it will now go to so many more pension-age households who really need it.
“We mustn’t forget about low-income working-age households, many of whom are struggling to afford their energy bills – they also need more direct energy bill support.
“The Spending Review can provide this deeper support to directly reduce bills as well as a much more structural solution to fuel poverty by making our homes far more energy efficient.”
The hugely controversial fuel payment cut last year meant that the benefit, which was previously universal, went to all but the poorest pensioners.
That move was regularly cited as a key factor behind a damaging set of local election results for Labour last month, with its support dropping dramatically in areas including Northumberland and County Durham.
Blyth and Ashington MP Ian Lavery said: “The decision to remove it in the first place was the wrong one, and it’s high time it was reversed. Admitting a mistake is one of the hardest things in politics, and by taking action today to reverse this cut, the government is effectively doing just that.
“This past week has brought not only this welcome U-turn, but also major infrastructure investment and an expansion in eligibility for free school meals—something I hope we can go even further on and make universal. It’s time for the party to be bold and invest in the people and communities it was founded to represent.”
Luke Akehurst, the Labour MP for North Durham, said he believed more than 90% of North East pensioners would now get the payment this winter.
He said the Government had “listened to the public”, while City of Durham MP Mary Kelly Foy called it a “positive step”.
Karen Clark, Labour’s newly-elected mayor of North Tyneside, said the change would help her council invest in other measures to support struggling households this year instead of repeating a voucher scheme it launched in 2024 to support pensioners who had lost their winter fuel allowance.
Mrs Clark added: “The Winter Fuel policy changes announced by the Government today are welcome. They mean anyone earning under £35,000 will once again receive the winter fuel allowance, essentially about 75% of those previously eligible will now get it.
“We never shied away from challenging the Government on this, and we promise to always put North Tyneside residents first, regardless of who is in Government.
“Locally we introduced a local winter fuel scheme for the most vulnerable who were missing out under the national scheme. This Government change will allow us to put this money into another scheme like our winter coat voucher, school holiday voucher scheme, crisis support or other schemes we have locally aimed at supporting those in society most in need.”
However, Newcastle’s Liberal Democrat opposition leader Colin Ferguson said: “Confirming that millions will have their winter fuel allowance restored isn’t a victory for Labour: it’s an admission they never should have done it in the first place. I suspect many will not forget that.”
