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Age UK has said the government's U-turn on cuts to winter fuel payments is "the right thing to do" and will "bring some much-needed reassurance for older people and their families".

Caroline Abrahams, the charity's director, called it a "good day for older people".

She said: "We have always said what really matters is that the estimated 2.5 million older people who lost their winter fuel payment when they couldn't afford it get the money back, by one means or another. 

"This new policy will help all these people by restoring their winter fuel payment, and we welcome it as a result."

Government should 'build on' change

Abrahams added Age UK "would much have preferred" this change to happen last summer. 

She said there's much more to do to tackle fuel poverty, adding: "Today rights a wrong and marks a start. 

"We hope the government will build on it."

Our deputy political editor Sam Coates has been speaking to the chancellor following the announcement of who'll get the winter fuel payment this year - marking a big U-turn on one of her first big policies.

Sam says Rachel Reeves "looked nervous" having been "bounced into making the decision by her own Labour MPs" after the local elections.

Caving all over the place

Having been firm on her reasons for the winter fuel cuts last year, and repeatedly ruled out a U-turn, Sam says there's now an "incoherence" to what the chancellor's doing.

"She said she had to do it to stabilise the markets because there was a black hole left by her predecessors - now she is prepared to U-turn on it without spelling out how she'll pay for it," he says.

Reeves "seems to be caving all over the place", Sam adds - pointing to softened welfare cuts and potentially scrapping the two-child benefit cap later this year too.

It may not be a good sign to the markets that she can hold the fiscal line.

And for Labour colleagues, a sign that her political judgement is flawed.

The U-turn proves the government knows the cuts were a mistake, so how and why did she make it? "It's a blow to her credibility," Sam says.

Rachel Reeves has said the government has reversed cuts to winter fuel payments today because the UK economy is "now in a better position".

The chancellor told Sky News the Office for Budget Responsibility (OBR) has "increased the growth forecasts for every other year in the forecast".

She explained: "They said that our reforms to the planning system would make the economy 拢6.8bn bigger, bringing in additional tax revenue.

"And in the first quarter of this year, we were the fastest growing economy in the G7."

'Not right' for richest pensioners to get help

She said there's "still work to do to ensure that the sums always add up", but that because of the decisions the government has made "we are now able to pay the winter fuel payment to more pensioners".

"We're not going back to the universal system. I don't think it is right that the very richest pensioners have their fuel bills subsidised," she added.

"But this year, nine million pensioners will get the winter fuel payment."

Liberal Democrat leader Sir Ed Davey says the "disastrous" winter fuel cuts imposed last year caused "misery" for "countless pensioners".

He says many were "forced to choose between eating and heating", and the government "buried its head in the sand for months on end".

He welcomes the chancellor's U-turn, but adds: "We will now study the detail of this proposal closely to make sure those who need support actually get that support. 

"The pain they went through this winter cannot be for nothing."

We're getting more reaction from the opposition parties to the government's U-turn on winter fuel payments. 

Kemi Badenoch calls it "humiliating".

The Tory leader says she "repeatedly warned the PM to reverse his callous decision to withdraw winter fuel payments, and every time he arrogantly dismissed me".

"Pensioners were forced to choose between heating and eating last winter. Starmer should apologise to them."

It's worth noting the Tories have never actually said they would have restored the winter fuel payment themselves.

 Nigel Farage is now speaking in Port Talbot as he sets out Reform's policies for Wales. 

The party hopes to win control of the Senedd at the elections in May next year, and have begun to describe themselves as the only opposition to Labour.

Farage begins by talking about the government's reversal of cuts to winter fuel payments. 

He implies it's not a coincidence that the government made this announcement at the exact same time as his press conference was scheduled to start. 

On the announcement itself, Farage says many pensioners will be pleased and says Reform can claim "some credit" for making the government reverse the cuts after pledging they would so do if they won power.

The changes just announced to winter fuel payments by the chancellor are a "huge, huge U-turn", says our political correspondent Liz Bates.

The number of people eligible for the payment has risen from 1.5 million to around nine million people, which has changed the policy significantly.

The change has come following pressure from voters, Labour and opposition MPs, and other charities. 

Liz says the U-turn comes ahead of Wednesday's spending review, when the government would rather talk about its investment plans.

Liz adds: "They're trying to get this announcement out of the way and try to undo some of that political damage, which was becoming very corrosive, around the winter fuel payment.

"It became clear that was not going to go away. I think they were concerned it was going to hang over the entire parliament and overshadow any of the government's achievements."

She adds this is a "political decision" - but the government's economic plans will come out in much more detail on Wednesday.

The government has confirmed the details of its U-turn on cuts to winter fuel payments. 

From this winter, everyone above the state pension age in England and Wales who has an income of 拢35,000 or less will receive the benefit. 

The government says pensioners do not need to do anything, as the payment will be issued to all and those with incomes above the threshold will have the payment recovered by HMRC.

It follows the government scrapping the winter fuel payment for almost all pensioners last year. Only those who received pension credit or similar benefits still got it.

This meant the number of people eligible fell from 11.4 million to 1.5 million.

It was one of the first acts of the new Labour government but drew heavy criticism from charities, opposition parties and voters.

The Treasury has now stated this policy has been reversed, with the threshold raised significantly.

It estimates that around nine million people - more than three-quarters of all pensioners - will receive the payment this winter. 

Most households will receive a one-off payment of 拢200, but those with somebody aged 80 or older will receive a payment of 拢300.

The government says the new policy will cost around 拢1.25bn, but we don't know how it will be funded. It will be accounted for at the budget.

Winter fuel cut was still right, says chancellor

Previously, there were universal winter fuel payments, which meant all people of state-pension age received the benefit. 

But critics said this meant millionaires received state benefits, one of the reasons why Labour decided to restrict it. 

The chancellor has also defended that decision and says continuing to mean-test the benefit, rather than returning to universal payments, will save the taxpayer 拢450m.

Rachel Reeves said: "Targeting winter fuel payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government.

"But we have now acted to expand the eligibility of the winter fuel payment, so no pensioner on a lower income will miss out."

The winter fuel allowance - not something we expected to be speaking about quite so much when Labour won power last year, but an issue that's become synonymous with the party's unpopularity.

You'll likely recall it was one of the first policy announcements by the chancellor last July - she said it would help fill a 拢22bn "black hole" in Britain's public finances.

It had previously been a universal benefit for all pensioners to help them pay for their winter fuel bills, but Reeves made it means tested so only the very poorest still got it.

Who is eligible for the winter fuel payment?

Labour limited it to people over state pension age who are receiving pension credit or a limited number of other benefits.

These benefits are income support; income-based jobseeker's allowance; income-related employment and support allowance; universal credit.

The number of people eligible dropped from 11.4 million to 1.5 million.

Reeves has said that number will go up for the coming winter, but we don't know yet who'll be made eligible.

Details could come today, Sky News understands.

How much is the payment?

The payment is 拢200 for households receiving pension credit where the recipients are all under 80.

If someone in the household is over the age of 80, it's 拢300.

What were the rules before?

The payments were available to everyone above state pension age.

Most people got the winter fuel payment automatically.

We are not expecting Labour to revert to that. Mick Jagger, your winter fuel allowance has gone for good.

Ministers will want to save some face on their U-turn, and still make the case that only poorer pensioners need the payment.

Who is eligible for pension credit?

Pension credit is available to pensioners whose income falls below a certain threshold - the payment tops up their income to this amount.

For people with a partner, income is calculated together.

Income includes state and private pensions, earnings, and social security benefits including a carer's allowance.

But not everything counts as income - disability payments, housing benefit, and council tax reduction aren't counted.

Pension credit tops up your weekly income to 拢218.15 if you're single and 拢332.95 if you have a partner.

Pension credit is often described as a "gateway benefit" as it can lead to further support, including help with housing costs and council tax.

The benefit can be claimed by phone and online, and an online calculator can help pensioners check if they are likely to be eligible and get an estimate of what they may receive.

Zia Yusuf has said he regrets making a post on social media calling one of Reform's MPs "dumb", after she asked the prime minister if he would "ban the burka".

Yusuf, at the time the party chairman, posted on X on Thursday morning saying he thought it was "dumb" for the party's newest MP, Sarah Pochin, to ask Sir Keir Starmer the question as it wasn't party policy. 

He resigned as chairman of Reform later that day, saying he no longer believed working to get the party elected "is a good use of my time".

But in a plot twist few saw coming, he returned to the party 48 hours later, now as the head of Reform DOGE, a group established to audit Reform-run councils and cut waste.

'I was reflecting the party's position'

Speaking about that post, Yusuf said: "I regret that tweet, but let me be clear what I meant by that.

"So, the first thing was the question was asked in the House of Commons, by Sarah - a brilliant MP - and then it was also made clear that that would not be party policy. 

"So, that's all I was stating. I was reflecting the party's position."

Yusuf also said he resigned due to "exhaustion", he was working "pretty much non-stop, virtually no days off in those 11 months".

Nigel Farage has welcomed Yusuf's return, saying he is "delighted". As well as DOGE, the British businessman will also assist with policy, fundraising and media appearances.