British finance minister Alistair Darling said on Wednesday he would look at winter fuel payments, tax credits and the minimum wage as ways to reduce pressure on people who will suffer because of the removal of a 10 percent income tax rate.
The concession was welcomed by Frank Field, a Labour parliamentarian who had signed up 39 rebel lawmakers to an amendment to compensate those hardest hit by the change. He said he was now withdrawing the amendment.
"It's a very good day for people on low pay," he told Sky News. "What we have seen here is a government not only listening, but acting."
In a letter to the Treasury Select Committee, Darling said any changes would be backdated to the start of this financial year.
Prime Minister Gordon Brown had faced a rebellion from his Labour Party over a decision last year to scrap the tax band that helped low earners in order to fund a reduction in the main rate of tax to 20 percent from 22 percent.
Darling told Labour parliamentarians on Tuesday that he would act this fiscal year to address concerns about poorer people being made worse off because of the tax reform.
Darling said he wanted to "make sure in every decision we take that we help those on low incomes."
