Winter fuel allowance latest: Starmer blasted by union over cut as Reeves set for showdown with Labour rebels

Winter fuel allowance latest: Starmer blasted by union over cut as Reeves set for showdown with Labour rebels

The head of the UK’s largest union has urged Sir Keir Starmer to U-turn on “picking the pockets of pensioners” by cutting the winter fuel allowance for around 10 million people.

Ahead of a crunch vote on Tuesday, chancellor Rachel Reeves will address a closed-door meeting of Labour MPs amid unease over her plans to axe the payment of up to £300 for all pensioners except those in receipt of those claiming pension credit or other means-tested benefits.

Dozens of Labour MPs are expected to abstain in Tuesday’s vote, after seven had the whip removed for voting against the the two-child benefit cap, amid fears that cutting the allowance will cost lives and leave people requiring hospital care.

In an embarrasment for Sir Keir, it emerged that Labour had warned in 2017 that Theresa May’s manifesto pledge to make the same cut would cause 3,850 excess deaths.

Citing plans to cut winter fuel payments and the infamous “dementia tax”, Labour had warned that re-electing the Tories on such a platform would “represent the single biggest attack on pensioners in a generation”.

Table of Contents

Key Points

  • Unite chief urges Keir Starmer to U-turn on ‘picking pockets of pensioners’

  • Rachel Reeves set to face Labour rebels in closed-door meeting

  • Labour warned in 2017 that winter fuel cut would cause 4,000 deaths

  • ‘Up to 50 Labour MPs’ could rebel in vote on winter fuel payments

  • Winter fuel payment cut will put pensioners in hospital, Labour MPs fear

  • Starmer says he will ‘have to be unpopular’ amid backlash

Comment | Starmer can’t afford to U-turn on winter fuel payments

16:13 , Andy Gregory

On the face of it, the decision to remove the £300 winter fuel allowance from millions of poor-ish pensioners, as well as some rich ones, was a political blunder by Rachel Reeves, writes The Independent’s associate editor Sean O’Grady.

Whether there really is a £22bn “black hole” in the public finances or not, this particular reform to the social security system will only raise £1.6bn – useful but not decisive.

In the context of a welfare bill of about £260bn, and total public spending running at £1,200bn (ie £1.2 trillion), it seems to be almost masochistically designed to yield the greatest political damage for the least fiscal reward.

The timing – coinciding with bumper pay rises for junior doctors and train drivers, and generous overseas aid funding to mitigate climate change – has gifted the Tories and Reform UK some handy attack lines. It has split the parliamentary party, riled the unions and wound up the Labour membership. All those freshly minted loyal Labour backbenchers must wonder what they did to deserve this – especially when the 10,000 to 15,000 upset pensioners in their marginal constituencies exceed their parliamentary majorities. No wonder Keir Starmer’s approval ratings have collapsed.

Still, optimism is one of the keys to political success in adversity, and there are actually sound reasons to believe that Reeves and Starmer will not only not be sunk by this early move but may actually turn it to some advantage.

Read his analysis in full with Independent Premium:

Starmer can’t afford to U-turn on winter fuel payments – and it might just pay off

Seventeen Labour MPs sign motion opposing winter fuel cut

15:37 , Andy Gregory

Five more Labour MPs have today signed the early day motion opposing the winter fuel allowance cut, bringing the total to 17.

Diane Abbott, Grahame Morris, Rosie Duffield, Andy McDonald and Chris Webb have all added their names today ahead of tomorrow’s vote in the Commons.

They join former shadow ministers such as Jon Tricket, John McDonnell, Clive Lewis and Ian Lavery, as well as Labour MPs Rachael Maskell, Nadia Whittome and Bell Ribeiro-Addy among the total of 37 MPs.

Six of the seven MPs who had the Labour whip removed for opposing the two-child benefit cap have also signed the motion, tabled by Labour MP Neil Duncan-Jordan.

No 10 asked whether Starmer worried pensioners could die as a result of cuts

15:15 , Andy Gregory

Sir Keir Starmer will always be “straight with the public,” Downing Street said when asked if the prime minister was worried that people had formed the wrong impression of his Government over the winter fuel policy.

“The prime minister has always been clear that he will always be straight with the public about the tough decisions that this Government has to take,” a No 10 spokeswoman said.

Asked whether Sir Keir was worried that pensioners may die as a result of the cuts, the spokesperson told reporters “the focus of government is ensuring that support is properly targeted to those that need it”.

Ministers agree on ‘fixing foundations of our economy’, No 10 says

14:58 , Andy Gregory

Downing Street has insisted that cabinet ministers agree over the importance of “fixing the foundations of our economy,” which it said cutting the winter fuel payment would help to do.

A No 10 spokesperson said: “The prime minister opened cabinet by stating the importance of fixing the foundations of our economy in order to carry out the government’s mandate for change. He said that given the scale of inheritance this would be difficult and that tough decisions are unpopular decisions, but it is the tough decisions that will enable change for this country.

“The chancellor added that unless we grow our economy we will not see the improvements in living standards and public services that the country deserves, but that we must first restore the state of public finances.”

Rachel Reeves said that “everything starts with stability, but investment and reform are key,” according to the readout.

Downing Street said ministers agreed the government would not be able to “reverse” problems “overnight” but “important progress has been made, including creating the national wealth fund, reforming planning, our fresh approach to working with local leaders, and preparation for the international investment summit this autumn which will showcase UK excellence to the world”.

The Guardian cited a cabinet source on Sunday as complaining that the policy “hasn’t even been thought through properly”, warning: “We’re going to end up with more old people in hospital or care as a result, with all the costs involved in that.”

Winter fuel cut is ‘just wrong’, warns Age UK director

14:38 , Andy Gregory

Caroline Abraham, director of Age UK, has warned that the winter fuel cut is “too mean” and takes “money away from too many people who really need it”.

It is “just wrong” that a pensioner will no longer receive this allowance if their annual salary is above £11,500, Ms Abraham told the BBC, adding: “The government is not short of options.

“This is a mistake and the sooner that is understood and responded to, the better for them and the better for older people.”

Minister was incorrect to suggest government looking to mitigate winter fuel cut, No 10 suggests

14:21 , Andy Gregory

Asked whether policing minister Dame Diana Johnson had been “freelancing” when she said mitigations were being looked at by ministers, a No 10 spokesperson told reporters: “I think it was promptly corrected.”

Dame Diana earlier told the BBC that the government was working to ensure all pensioners who were entitled to pension credit claimed the benefit, adding that she was “sure” other mitigations were being looked at by ministers.

However, Treasury sources later told the PA news agency that Dame Diana “misspoke” in suggesting the government was looking at doing more than encouraging further take-up of pension credit.

No discussion of softening impact of winter fuel cut at cabinet, No 10 says

14:04 , Andy Gregory

There was no discussion of softening the impact of the winter fuel cut at cabinet on Monday, Downing Street said.

Whipping for the vote over the government’s plans to scrap the winter fuel allowance for all but the country’s poorest pensioners was also not discussed at cabinet, a No 10 spokesperson told reporters.

Labour MPs opposed to the policy are expected to abstain rather than vote against the government after Sir Keir Starmer removed the whip from seven MPs who voted against him on the two-child benefits cap.

Cut comes as energy bills to increase by almost £150

13:50 , Andy Gregory

The winter fuel payments cut is set to come as average household energy bills are to rise by £150 per year.

Regulator Ofgem announced last month that the average home energy bill will increase from £1,568 to £1,717 on 1 October, as it raises its price cap by 10 per cent.

Energy bills to increase by almost £150 after Ofgem raises price cap by 10 per cent

When was winter fuel allowance introduced?

13:26 , Andy Gregory

There were gasps reported in the House of Commons when chancellor Rachel Reeves announced her plans to cut winter fuel payments, first introduced by her predecessor Gordon Brown in 1997.

Mr Brown said at the time that he was “simply not prepared to allow another winter to go by when pensioners are fearful of turning up their heating, even on the coldest winter days”.

Labour said in 2017 that deaths among the elderly had fallen from around 34,000 to 24,000 since the introduction of the winter fuel payment in 1997, allowing for variation in winter weather.

Watch: Keir Starmer continues defence of winter fuel allowance cut

13:01 , Andy Gregory

‘No Labour MP is happy’ with winter fuel cut, says new MP

12:34 , Andy Gregory

“No Labour MP is happy about this, no Labour MP is comfortable with it,” former journalist Paul Waugh – now the MP for Rochdale – told the BBC’s Westminster Hour programme.

But he argued that the winter fuel payment cut is necessary to help fill the £22bn “black hole which you cannot ignore”.

Rachel Reeves set to face down rebels in meeting ahead of winter fuel payments vote

12:10 , Andy Gregory

Chancellor Rachel Reeves is set to address Labour MPs this evening in a behind-closed-doors meeting, where she will face off with rebels over her cut to the winter fuel payment, Politico reports.

All eyes will be on whether Ms Reeves signals that there could be any plans to mitigate the impact of the cut for some of the lowest-income pensioners who will no longer qualify for the payment, ahead of Tuesday’s vote on the matter.

Former pensions minister urges government to U-turn on cut to winter fuel payments

11:44 , Andy Gregory

Former pensions minister Baroness Altmann has urged the government to U-turn on planned cuts to winter fuel payments, claiming it may not be aware of the extent of poverty among pensioners, our political correspondent Millie Cooke reports.

She suggested the changes should have come in from 2025 to allow time to find mitigation measures.

Baroness Altmann told Times Radio, if these regulations had come into force from 2025, “I don’t think there would be this kind of furore because everybody would feel there is some time now to find mitigation measures, maybe to take it away from particular income groups, maybe to extend the means test threshold to include more pensioners who otherwise will be left out.”

She added: “The government, I wish, would recognise there’s no shame in saying we got this one a little bit wrong, we’re just going to pause and take time to do it properly.”

The former pensions minister also said the government may not be aware of the extent of poverty among pensioners, warning that the one to two million people slightly above the means test threshold “are poorer than those on pension credit and there is no mitigation for them”.

She said: “The chancellor and the prime minister may not be aware of just how there are so many poor pensioners in this country and are focusing perhaps just on those who are very well off.”

Treasury sources ‘deny government looking at ways to mitigate’ winter fuel payment cut

11:19 , Andy Gregory

Home Office minister Dame Diana Johnson earlier told the BBC that the government wass working to ensure all pensioners who were entitled to pension credit claimed the benefit, adding that she was “sure” other mitigations were being looked at by ministers.

However, Treasury sources told the PA news agency that Dame Diana “misspoke” in suggesting the government was looking at doing more than encouraging further take-up of pension credit.

It came as the i newspaper reported that officials had been exploring plans in recent days for a “social tariff” to help lower-income households with their energy bills.

Minister says they will ‘reluctantly’ vote for winter fuel payment cut

11:05 , Andy Gregory

Policing minister Dame Diana Johnson has told ITV she will “reluctantly” vote for the government’s winter fuel allowance cut, but emphasised that it was “a difficult decision”.

 (PA Wire)

(PA Wire)

Tories previously claimed Labour’s warning of 4,000 excess deaths was ‘scaremongering’

11:02 , Andy Gregory

Here is The Independent’s report from 2017 on Labour’s pre-election warning that Tory plans to make the cut announced seven years later by chancellor Rachel Reeves would lead to nearly 4,000 excess deaths.

At the time, Tory work and pensions secretary Damian Green had hit back that the figures were “irresponsible scaremongering by Jeremy Corbyn”.

Labour says Tory winter allowance policy will kill 4,000 pensioners this winter

Cut to winter fuel payment could kill 4,000 people, Labour’s own research suggests

10:32 , Andy Gregory

Thousands of pensioners could die if the government proceeds with its plan to cut winter fuel payments for those not on benefits, Labour’s own research suggested.

Analysis published in 2017, when Sir Keir Starmer was in the Shadow Cabinet, warned that Conservative plans to cut the fuel allowance for ten million pensioners would increase excess deaths by 3,850 that winter.

The proposal, put forward by Theresa May’s government, was dubbed by Labour at the time as the “single biggest attack on pensioners in a generation in our country”.

Our political correspondent Millie Cooke has the full report:

Winter fuel payment cut could kill 4,000 people, Labour’s own research suggests

Corbyn accuses Starmer of ‘choosing to push more pensioners into poverty’

10:21 , Andy Gregory

Former Labour leader Jeremy Corbyn has accused Sir Keir Starmer of “choosing to push more pensioners into poverty”.

Mr Corbyn, who spent 41 years as a Labour MP until he was expelled from the party by Sir Keir, said: “The government says they have no choice but to cut winter fuel allowance. That is a lie. They could bring in wealth taxes as a start. Instead, they are choosing to push more pensioners into poverty.”

Government ‘considering social tariff’ for energy costs

10:07 , Andy Gregory

Households on lower incomes could pay less for energy under plans for a “social tariff” reportedly being considered by ministers, amid concerns over plans to cut winter fuel payments for millions of pensioners.

Among several options being explored by the government is a social tariff, similar to those for cheaper mobile phone packages and which would effectively act as a discount for families on lower incomes, according to the i newspaper.

Sources told the outlet that the proposal was discussed at a meeting chaired by consumer energy minister Miatta Fahnbulleh with charities and energy companies last month, and there have been further talks in recent days, with a second summit expected before the end of the month.

To be eligible for social tariffs for mobile phones, customers must be in receipt of universal credit or other benefits. Rachel Reeves is cutting the winter fuel allowance for all pensioners except those in receipt of pension credit and other benefits. Research from Age UK shows that around 800,000 pensioners are missing out on pension credit.

Ministers are also looking at potentially extending the warm home discount in both sum and eligibility, and has told energy suppliers that they must “play their part” in supporting households at risk of going into debt due to the high cost of bills, i reported.

TUC chief urges Rachel Reeves to use Budget to set out more support for pensioners

09:52 , Andy Gregory

The general secretary of the Trades Union Congress has raised concerns about the government’s plans to cut the winter fuel allowance.

Speaking to BBC Breakfast on Monday, Paul Nowak said: “I’ve got real concerns about the cuts to winter fuel allowance because I don’t want any pensioner going into this winter worried about putting the heating on.

“That’s why I hope in the Budget the Chancellor will set out the support that she’ll make available to those pensioners who … aren’t well off by any means. To make sure that they’re not frightened to use the heating this winter.

“But I think it’s fair to say the chancellor’s got a huge range of challenges. She’s been bequeathed a toxic economic legacy by the previous government. There’s lots of things that she needs to fix. The state of our public services, the fact that we’ve got a universal credit system that’s not fit for purpose.

“But as I say I hope in the Budget she’ll set out the support, not just for pensioners, but for those on low pay, those who are in receipt of things like sickness allowance. I think it’s really important that she looks at all of those things.”

Government minister ‘not surprised’ by concern over winter fuel payment cut

09:45 , Andy Gregory

Policing minister Dame Diana Johnson said she was “not surprised” at the reaction to the government’s decision to means test winter fuel payments.

Dame Diana told the BBC: “I understand for many MPs this is a really hard decision. I myself have had lots of constituents contact me, so I know how difficult this is.”

Asked if she was surprised by the reaction, she said: “No, I’m not surprised by the amount of concern that there is about this, and obviously we do not want to see anyone struggling with energy bills, particularly pensioners.

“The winter fuel allowance, we know is not a targeted benefit at the moment but it’s going to be targeted and that’s why it’s so important that the poorest pensioners are getting everything they’re entitled to to support them.”

Labour MP warns Starmer there can be ‘no excuse’ for failing to tackle Britain’s ‘obscene’ inequality

09:18 , Andy Gregory

Labour MP Jon Trickett, who is among the 12 MPs to sign the early day motion opposing the winter fuel payment cut, has warned Sir Keir Starmer there can be “no excuse at all” for failing to tackle the “obscene” maldistribution of wealth in Britain.

In an opinion piece on the LabourList website, Mr Trickett wrote: “In the fifth most wealthy country in the world there can be no excuse at all for the scale of difficulties faced by working people. The answer surely lies in tackling the gross and indeed obscene maldistribution of Britain’s wealth.

“With a huge parliamentary majority and demoralized and disorientated opposition. There can therefore be no excuse at all, none whatsoever, for our government to fail to deliver social justice and emancipate the poor; our pensioners, our children, our disabled, and our exploited working people.Arguing that a wealth tax alone could raise £100bn over the course of a parliament, he added: “The only thing which might inhibit us is if our leaders fail to seize the moment out of timidity, lack of a clear strategy or simply complacent drift.”

Union chief urges Starmer to U-turn on ‘picking pockets of pensioners’

09:09 , Andy Gregory

Labour has decided to “pick the pocket of pensioners” by cutting winter fuel payments while leaving the richest “totally untouched”, the head of the UK’s largest trade union has said.

Sharon Graham, general secretary of Unite, urged Sir Keir Starmer to “do a U-turn” on the policy, which would see winter fuel payments restricted to only the poorest pensioners.

She told the BBC’s Today programme: “We need to make sure that he is making the right choices and leadership is about choices. He needs to be big enough and brave enough to do a U-turn on this choice. It’s completely wrong.

“People do not understand how a Labour government has decided to pick the pocket of pensioners and, at the same time, leave the richest in our society totally untouched. That is wrong and he needs to change course.”

Ms Graham called instead for a tax on the “1 per cent wealthiest”, which she claimed would raise £25bn rather than the £1.2bn restricting winter fuel payments would save.

Watch: John McDonnell warns pensioners ‘will die’ if winter fuel allowance cut passed

09:04 , Andy Gregory

Starmer refuses to say whether MPs will lose Labour whip if they vote against cut

09:02 , Andy Gregory

Sir Keir Starmer refused to say on Sunday whether Labour MPs who vote against the government will lose the whip, after he effectively expelled seven Labour MPs from the party in July for voting against the two-child benefit cap.

Asked by the BBC’s Laura Kuenssberg whether he will do the same for anyone who votes against the cut on Tuesday, the prime minister said: “That will be a matter for the chief whip.

“We’re going into a vote. I’m glad we’re having a vote, because I think it’s very important for parliament to speak on this. But every Labour MP was elected in on the same mandate as I was, which was to deliver the change that we need for the country.”

“I’m absolutely convinced that we will only deliver that change – I’m absolutely determined we will – if we do the difficult things now,” he said, adding: “I do recognise it’s really hard for some pensioners. But of course, they do rely on the NHS, they do rely on public transport. So these things aren’t completely divorced.”

Wes Streeting ‘not remotely happy’ voting to ‘take money away’ from pensioners

08:57 , Andy Gregory

Health secretary Wes Streeting has said he is “not remotely happy” on having to vote to “take money away” from pensioners through cutting winter fuel allowance, but argued it is essential to balance public finances.

He told Sky News: “I think it is a tough choice, and we’ve had plenty of political criticism for it, I think, which demonstrates the political pain of it.

“I’m not remotely happy about it, and I’m not remotely happy about having to say to some of my constituents, I’m sorry that I’m going into work this week to vote for something that will take money away from you.”

Wes Streeting ‘not remotely happy’ voting to ‘take money away’ from pensioners

Keir Starmer says he will ‘have to be unpopular’ amid winter fuel payment backlash

08:53 , Andy Gregory

Sir Keir Starmer has said that he will “have to be unpopular” to restore the public finances from the dire inheritance left by the Conservatives, as he faces a rebellion over his cut to the winter fuel allowance.

Accusing his predecessors of “running away from difficult decisions”, the prime minister said Labour can only deliver change if he makes “tough choices” now.

Our political correspondent Archie Mitchell has more in this report:

Keir Starmer says he will ‘have to be unpopular’ amid winter fuel payment backlash

Twelve Labour MPs sign motion opposing winter fuel cut

08:51 , Andy Gregory

A total of 12 Labour MPs are among the 26 to have so far signed a Commons early day motion stating their opposition to the government’s winter fuel allowance cut, ahead of Tuesday’s binding vote.

The motion, tabled by Labour’s Neil Duncan-Jordan, has also been signed by five of the seven MPs who had the Labour whip removed in July for voting against the two-child benefit cap.

Signatories include former shadow ministers such as Jon Tricket, John McDonnell, Clive Lewis and Ian Lavery, as well as Labour MPs Rachael Maskell, Nadia Whittome, Kim Johnson, Kate Osborne, Bell Ribeiro-Addy, Dr Simon Opher, Chris Hinchcliff and Mary Kelly Foy.

Up to 50 Labour MPs could rebel in vote on winter fuel payments, report suggests

08:35 , Andy Gregory

As many as 50 Labour MPs could rebel against chancellor Rachel Reeves’ cut to the winter fuel allowance in Tuesday’s vote, a report suggests.

With MPs fearing voting against the policy after Sir Keir Starmer removed the Labour whip from seven MPs who voted against him on the two-child benefit cap, dozens are reportedly considering abstaining or being absent – but rebels say their numbers are very difficult to predict.

One Labour MP told The Guardian: “I’d expect the vast majority of anyone who does rebel to abstain, and remain inside the tent. Abstention is the new rebellion. It’s a question of defining what dissent is, and it’s probably better to do this than to jump off a cliff.”

How is Labour planning to cut winter fuel allowance?

08:28 , Andy Gregory

Around 10 million people are expected to be directly impacted by the plans announced by the chancellor in July – prompting gasps in the House of Commons – to cut the winter fuel payments first introduced by her predecessor Gordon Brown in 1997.

The decision, made ahead of Ms Reeves’s first budget next month, will axe the payment of up to £300 for all pensioners except those in receipt of those claiming pension credit or other means-tested benefits.

It comes as regulator Ofgem raises its energy price cap by 10 per cent, with average annual bills expected to rise by £150 per year.

Analysis shows energy bills this winter will be the highest on record for older people who previously received the winter fuel payment, worth up to £300.

My colleague Albert Toth has more details on the cut here:

How Winter Fuel Payments are changing – and other support available for pensioners

Winter fuel payment cut will put pensioners in hospital, Labour MPs fear

08:26 , Andy Gregory

Labour frontbenchers and MPs have reportedly expressed fears that chancellor Rachel Reeves’s “brutal” plan to scrap the winter fuel allowance for all but the poorest pensioners will put more older people in hospital.

With MPs set to vote on the policy on Tuesday, Labour politicians have expressed their own grave concerns amid a flood of worried emails from constituents reported by The Independent to have shocked new MPs in particular.

In remarks to The Guardian, anonymous Labour MPs lined up to relay the sheer volume of the correspondence they have received on the issue, with one saying: “I don’t think there is a Labour MP who isn’t worried … I’ve had more people stopping me in the street than over Brexit. Pensioners just pleading that we don’t do this.”

One cabinet source complained to the paper that the policy “hasn’t even been thought through properly”, warning: “We’re going to end up with more old people in hospital or care as a result, with all the costs involved in that.”

Another MP said: “It’s going to save us £1.5bn but that won’t be worth the political hit we’ll take this winter. The right-wing press will be full of stories about elderly people sitting in A&E or on buses because they can’t afford their fuel bills and it’s the only way they can keep warm.”

Winter fuel payment cut will put pensioners in hospital, Labour MPs fear

08:24 , Andy Gregory

Good morning, and thanks for joining us on The Independent’s politics blog, where we’ll be bringing you live updates as pressure grows on Sir Keir Starmer’s government over cutting of the winter fuel allowance for millions of pensioners.

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