Chancellor Rachel Reeves has made a last-ditch attempt to convince her MPs it is the right decision to cut winter fuel payments for the majority of pensioners.
Addressing a meeting of the Parliamentary Labour Party (PLP) in the Commons tonight, she said she was “not immune to the arguments” that many of them had made against the “difficult decision”, and insisted ministers had “considered” them all.
But she said it was “the right thing to do – to target money, at a time when finances are so stretched, at people who need [it] most.”
Ms Reeves was speaking to her backbenchers on the eve of a vote on the policy in parliament, which would limit winter fuel payments to those on pension credit, rather than giving them to everyone over state pension age to help with energy bills – seeing around 10 million people lose the benefit.
Rumours had circled that the government could be planning to soften the blow for those no longer eligible, but asked earlier if the cabinet had discussed it on Monday, Sir Keir Starmer’s spokesman said: “Not at all.”
He added: “The cabinet are in agreement that we need to fix the foundations of our economy, and this is the mandate that they have been asked by the country to deliver.”
Chancellor Rachel Reeves held a meeting with her party’s MPs on Monday evening. Pic: PA
Keep up with all the latest news from the UK and around the world by following Sky News
A spokesperson for the chancellor said backbenchers had shown her “strong support”. But it is understood about 30 Labour MPs are unhappy with the decision to cut winter fuel payments from 16 September.
However, they are expected to abstain on Tuesday’s vote, rather than go against the government, after Sir Keir suspended seven Labour MPs for six months rebelling in July.
At least two of those suspended MPs – former shadow chancellor John McDonnell and Zarah Sultana – have confirmed they will vote against the measure on Tuesday.
Sir Keir would not say if he would suspend any more MPs for rebelling this time round, telling the BBC on Sunday: “That will be a matter for the chief whip.”
Please use Chrome browser for a more accessible video player
Streeting: ‘Not remotely happy’ about winter fuel payments cut
Speaking to MPs, Ms Reeves outlined how the state pension had risen by £900 compared with a year ago, and it was set to go up further following Labour’s pledge to keep the so-called “triple lock”.
She also pointed to a campaign to ensure people are taking up pension credit if they are entitled to it, as well other benefits, with a 115% increase in people applying in the five weeks since the government announced the winter fuel payment cut – a total of 38,500 claims.
The chancellor said: “Why are we having to make these savings? It’s not because we plan to, not because we wanted to, but because there’s a £22bn black hole in the public finances because of the mess created by the previous government.
“The first step of our manifesto was delivering economic stability. This £22bn black hole would pose a risk to our financial stability and would mean that we would break our fiscal rules.”
Read more:
Starmer facing pressure on two fronts
Action taken on release of domestic abuse prisoners
Ms Reeves also warned of “more difficult decisions to come”, with her first budget due at the end of October.
“I don’t say that because I relish it,” she added. “I don’t. But it is a reflection of the inheritance that we face.
“So, when members are looking at where to apportion blame, when pensioners are looking where to apportion blame, I tell you where the blame lies. It lies with the Conservatives and the reckless decisions that they made.”
Unease in the Labour ranks
As she arrived at what could have been an uncomfortable meeting with Labour MPs today, the chancellor seemed confident and relaxed.
In the room Rachel Reeves was said to be the same, approaching the unrest about changes to the winter fuel allowance defiantly ahead of a vote on the issue.
Any suggestion of a climbdown, or even a few concessions to soften the blow of the £1.4bn cut for the poorest, were brushed aside.
Instead, a bullish message to the hundreds of MPs in the room: “There are more difficult decisions to come.”
But although there were no dissenting voices prepared to pipe up in front of colleagues, away from the committee room there was still some unease.
One MP who has previously said he’ll abstain was disappointed at the lack of alternative measures to protect the most vulnerable.
Others will no doubt feel the pressure from their unhappy constituents as they linger outside the voting lobbies.
It is the first big test of discipline, and despite today’s show of strength from the chancellor, she will need to keep any insubordination to a minimum if she is to maintain her authority and her tight grip on the purse strings.
The prime minister will address the Trades Union Congress (TUC) conference on Tuesday, where he is set to be questioned about the winter fuel payment cut and workers’ rights.
Sharon Graham, head of Unite, the largest trade union, has called for Sir Keir to U-turn on the policy as she said the public cannot understand why a Labour government is choosing to “pick the pocket of pensioners” while leaving the richest “totally untouched”.
Leave a Reply