MOST pensioners are to have their winter fuel benefit restored, the government has finally conceded.

Concluding a slow-motion U-turn on Labour’s most politically disastrous move since returning to office, Chancellor Rachel Reeves threw in the towel today, while expressing no regrets for the original cut.

Around nine million older people across England and Wales will receive the payment this winter, although those who have an income of over £35,000 a year — about a quarter of the total — will have it reclaimed through the tax system.

Slashing the benefit was one of Ms Reeves’s signature decisions, causing outrage among pensioners and triggering a huge drop in Labour support.

Staging a fighting retreat, Ms Reeves claimed: ”Targeting winter fuel payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government.

”It is also right that we continue to means-test this payment so that it is targeted and fair.

”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 Chancellor is now facing tough, last-minute decisions in a spending review due tomorrow. 

Particular pressure is coming from Home Secretary Yvette Cooper to spend more on policing, and Housing Secretary Angela Rayner is demanding greater investment in social housing.

Ms Reeves’s investment plans will likely be overshadowed by cuts in current spending. 

The National Education Union (NEU) called for a wealth tax to help fund schools today.

NEU general secretary Daniel Kebede said: “Our schools are at breaking point, with cuts leading to fewer resources, larger class sizes, and the erosion of subjects that are crucial to a well-rounded education. 

”The government must stop short-changing education.”

Unite general secretary Sharon Graham said: “Commonsense has finally prevailed as the winter fuel cut is reversed for most pensioners. Whilst this is an important step forward, questions will be asked about how this disastrous decision was made in the first place, the damage may not easily be reversed.

“Leadership is about choices and the choice to pit workers against pensioners was simply wrong.

“Instead of what seems to be a never-ending cycle of cuts, Labour needs to revisit the fiscal rules and bite the bullet on a wealth tax. Britain is the sixth richest economy in the world, the idea that we would be picking the pockets of our pensioners was unnecessary and unforgivable.”

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, welcomed the winter fuel about-face, saying: ”Finally the Chancellor has seen sense.  

”Axing the Winter Fuel Payment for so many pensioners was a cruel cut to make.”

However, he warned that ”there will still be pensioners unable to afford the high cost of energy and living in cold damp homes.”

Unison general secretary Christina McAnea also welcomed the move, saying: ”This is the right thing to do. The government acknowledges it made a mistake.

“Restoring the fuel payment to all but the wealthiest pensioners will make a huge difference to anyone who struggled to keep warm last winter.”

Lasting political damage appears to have been done to Labour by the episode, for no corresponding economic gain.  

Ms Reeves’s reputation, and chances of succeeding Prime Minister Sir Keir Starmer at the top, is surely damaged as a consequence.