Controversial changes which would have meant coastguard volunteers, including those in Norfolk, no longer got paid for attending callouts and training sessions have been scrapped.
The Maritime and Coastguard Agency (MCA) had said a legal ruling meant it was going to have to stop volunteers being able to claim just over £11 per hour when responding to incidents and training exercises.
The move sparked anger in Norfolk, where there are coastguard stations in Winterton, Bacton, Cromer, Sheringham, Gorleston, Wells and Hunstanton.
But, on Thursday morning, Keir Mather, the government's maritime minister, said plans to move to an expenses-only volunteer model in September 2026 would not go ahead.
He said: "I have listened to the views and testimonies of coastguard rescue officers about how these changes might affect them.
"MPs across the House, on behalf of their constituents, have raised concerns through parliamentary questions, a Westminster Hall Debate and an urgent question.
"I have also heard the deep concerns from many in the coastguard rescue officer community about this change.
"Given these concerns, my department has undertaken further work to scrutinise the information that was provided to inform decision making.
"Having done so, it has become clear that parts of the information gathering process to inform MCA operational decisions were not sufficiently detailed to properly reflect the impact of these changes.
"I can, therefore, confirm that plans to move to the expenses-only volunteer model in September will not go ahead and current arrangements will remain in place."
Mr Mather said "further engagement" would now take place to "inform future decisions on the shape of the Coastguard Rescue Service".
North West Norfolk MP James Wild had highlighted the concerns of members of Hunstanton Coastguard Rescue Team, in Parliament.
He said the minister's decision was "welcome news" and said: "The government has finally listened to coastguard rescue officers from Hunstanton and beyond and MPs."
The Conservative MP said the "damaging plans" would have put public safety at risk.
North Norfolk MP Steffan Aquarone, who also spoke about the proposed changes in Parliament earlier this month, said: "There’s a huge sense of relief across North Norfolk that these half-baked plans have been scrapped.
"Our volunteer Coastguard are a vital, beloved emergency service in North Norfolk who keep us safe day after day.
"The proposals to strip back their remuneration were, frankly, an insult to their hard work and the danger the put themselves in for the rest of us."
The Liberal Democrat added: "I’m pleased the government will now be consulting further with coastguard rescue officers and MPs across the country - which should have happened long before these changes were ever proposed.
"I’ll be speaking further with my local coastguard and making sure that North Norfolk’s voice gets heard in these consultations."
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