The UK government’s attempt to save £1.5bn by cutting winter fuel payments to pensioners could end up costing money after a series of offsets and U-turns, analysts have warned.
Prime Minister Sir Keir Starmer last week bowed to pressure from Labour MPs to preserve the payments for most pensioners, in a move that experts say would reduce the planned savings to about £180mn.
At the same time, there has been about £230mn of new claims for pension credit after the government initially encouraged applications to offset the impact of the cuts.
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