How Labor MPs Plan to Punish Rachel Reeves Over Winter Fuel Payment Cuts

Rachel Reeves is under fire for cutting winter fuel payments. Bloomberg via Bloomberg via Getty Images

on May 1, Keir Starmer He could not be clearer about his position on whether all pensioners should continue to receive the winter fuel payment from the government.

It was a bad idea to delete it, the leader of the opposition at the time made it clear to the House of Commons.

He was so worried about the prospect of the Tories doing it, he asked Rishi Sunak at PMQs that day: “Will the prime minister now rule out stripping pensioners of their winter fuel payments to help fund his £46 billion black hole?”

How PM Starmer must now regret that particular line of attack.

Within days of joining the government two months ago, the chancellor Rachel Reeves it was decided to test the means of the universal benefit that existed until now, which would mean that only those on pension credit would continue to receive it, with 10 million OAP missing.

Reeves blamed the £22 billion “black hole” in the nation’s finances – which Labor insisted they inherited from the Tories – for the need to find savings where they can to balance the books .

However, it created a huge political problem for the new government which could lead to Starmer suffering his biggest backbench rebellion yet.

Under increasing pressure from MPs, the leader of the Deputies Lucy Powell announced that a parliamentary vote on the controversial reduction will take place on Tuesday.

This is the same Lucy Powell who took to the airwaves last weekend to suggest that if the chancellor had not made her decision, the pound would have run and the economy would have crashed .

Some in the government suspect that Reeves chose to take up to £300 from millions of OAPs – many on incomes of barely £11,500 a year – the first signature decision of her time in office.

One senior source told HuffPost UK: “I keep waiting for some sensible person to say ‘right, how do we get out of this hole we’ve fallen into in this policy’ rather than, for some reason, doing as a test of our political and economic credibility.”

Another insider said: “This is a problem on the doorstep, but they have to see it through now.”

So far, 10 Labor MPs have signed a Commons motion asking the Treasury to think again, but I believe some senior party figures as many as 20 could end up rebelling.

That would easily defeat the seven rebels who defied the Prime Minister and voted to scrap the two-person benefit cap barely two weeks after the general election – and Labor was whipped out of trouble.

HuffPost UK understands there are currently no plans to impose the same sanction on any MPs who voted against the government on Tuesday.

Among the signatories to the rebel motion tabled by Labor MP Neil Duncan-Jordan is former shadow cabinet member Rachael Maskell, who told HuffPost UK that she and her Labor colleagues were “very concerned” about the approach of the government.

“I have spoken to so many MPs who are very upset about these measures,” she said. “Some were literally and tears at the prospect of their elderly classmates not receiving their winter fuel payments.

“I’ve read letters myself and I’ve had tears. One constituent who was recently widowed told me that they are just over the income threshold so they no longer qualify for the payment and they are really dreading the winter. This is not about macroeconomics, this is about real life.”

The Exchequer has launched a campaign urging the 800,000 pensioners who qualify for pension credit but do not claim to do so.

But Maskell said it takes nine weeks to process the claim even after completing the lengthy application form.

“To keep old people warm and healthy they need to have enough money to pay the bills and this needs to be focused on now,” she said. “We’ve said we’ll protect the NHS, so we don’t need more old people in hospital beds this winter.

“Old people can’t keep the heat, which puts them at greater risk of stroke, heart attack and hypothermia. That would, and will, put more demand on the NHS [health secretary] Wes Streeting who has to stand before the country and explain why – and I don’t want him to have to do that.”

The York Central MP wants the Chancellor to delay her plans to cut the winter fuel payment until next year, and use that time to set up a better system to target the benefit on those who need it.

Caroline Abrahams, charity director at Age UK, said “many older people are very scared about how they will cope this winter” when the payment is withdrawn.

The charity estimates that around a million people who live close to the poverty line, but are not poor enough to receive pension credit, will “struggle badly” this winter as a result of the Chancellor’s decision.

Abrahams said: “The government is not disputing that millions of low and moderate income pensioners will lose their winter fuel payment under their plans and they have no credible answer when asked about the plight of all those people taking their pensions they are little work above the pension. line of credit.

“It is for these reasons that they should put this policy on hold so that it can be fully considered as part of the government’s spending review in the spring.”

Downing Street sources told HuffPost UK that the government has no plans to U-turn, or offer any concessions to the rebels, ahead of Tuesday’s vote.

They cited the extra £421 million announced last week for the family support fund, and that the triple pension lock means the state pension will increase by £400 a year as proof that the government is acting to help those who is on the Pension. lowest income.

A cabinet minister defended the government’s position, and insisted that the chancellor had chosen the least serious option.

“We know it’s difficult but we can see how bad the public finances are,” they told HuffPost UK. “It was quite clear that if immediate action was not taken in this regard, there would be a major economic shock to the markets.

“The Treasury’s choice was to triple lock the pension or test the winter fuel allowance. So it’s a pretty easy choice.

“Politics is hard, but we have to show the voters that we have left this terrible legacy and that is our real difficulty. There are no tasty options here.

“We’re asking the public and the pensioners to give us some time to sort this mess out.”

However, Tuesday’s vote promises to be very uncomfortable for Starmer and Reeves.

With a brutal Budget looming at the end of October, it looks like the Prime Minister will make good on his promise that “things will get worse before they get better”.

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