MPs urged to back winter fuel payment cuts for most pensioners
Urgent appeal to MPs to cut winter fuel payments for most pensioners
Chancellor Rachel Reeves made an urgent appeal to MPs to support the decision to cut winter fuel payments for most pensioners. Speaking to the Parliamentary Labour Party (PLP) in the Commons tonight, she acknowledged the arguments against the “difficult decision” but insisted it was necessary to direct funds to those in greatest need due to strained finances.
Reeves addressed her backbenchers ahead of a parliamentary vote on the policy, which aims to restrict winter fuel payments to pension credit recipients only, affecting around 10 million pensioners. Despite rumours of a potential softening of the policy, Sir Keir Starmer’s spokesman confirmed on Monday that the cabinet had not discussed such measures, emphasising the need to stabilise the economy as mandated by the public.
A spokesperson for the chancellor noted strong support from backbenchers, though approximately 30 Labour MPs are reportedly displeased with the cuts, which take effect on 16 September. These MPs are expected to abstain from Tuesday’s vote, following the suspension of seven Labour MPs in July for previous rebellions. Former shadow chancellor John McDonnell and Zarah Sultana have confirmed they will vote against the measure.
MPs will vote on cutting winter fuel payment for pensioners later today.
Shadow Work and Pensions Secretary @MelJStride says Labour has made a 'conscious choice' to bring in pay increases, making pensioners pay the price.#KayBurley OM pic.twitter.com/yOn2usd36n
— Kay Burley (@KayBurley) September 10, 2024
Sir Keir declined to comment on potential further suspensions, stating that it would be a decision for the chief whip. Reeves highlighted the £900 increase in the state pension over the past year and Labour’s commitment to maintaining the “triple lock”. She also mentioned a significant increase in pension credit applications following the announcement of the winter fuel payment cut, with 38,500 claims in five weeks.
The chancellor cited a £22bn deficit in public finances as the reason for the cuts, attributing the shortfall to the previous government’s mismanagement. She stressed the need for economic stability to avoid breaking fiscal rules.
Reeves warned of more challenging decisions ahead, with her first budget scheduled for the end of October. She pointed the blame for the current financial situation at the Conservatives.
Despite arriving at a potentially contentious meeting with Labour MPs, Reeves appeared confident. In the meeting, she remained resolute about the winter fuel allowance changes, dismissing any suggestions of concessions. However, some MPs expressed disappointment over the lack of alternative measures for the vulnerable and anticipated pressure from constituents.
This vote represents a significant test of discipline for the chancellor, who must minimise dissent to maintain her authority and control over the budget.
Prime Minister is set to address the Trades Union Congress (TUC) conference on Tuesday, where he will face questions on the winter fuel payment cuts and workers’ rights. Sharon Graham, head of Unite, has urged Starmer to reverse the policy, criticising the perceived injustice of imposing cuts on pensioners while sparing the wealthy.
What Other Media Are Saying
- LBC article highlights Labour Chancellor Rachel Reeves’ appeal to Labour MPs for support ahead of the winter fuel allowance debate, emphasizing her need for backing amidst political scrutiny.(read more)
- The Guardian reports that the Labour government’s proposal to cut winter fuel payments for all but the poorest pensioners has sparked controversy and concerns among Labour MPs, with many expected to abstain or be absent from the vote.(read more)
- Sky News reports Chancellor Rachel Reeves appeals to Labour MPs for support on the eve of a vote on limiting winter fuel payments to those on pension credit, emphasizing the need for economic foundations and the pensions triple lock.(read more)
Frequently Asked Questions
Here are some common questions asked about this news
Why is Chancellor Rachel Reeves cutting winter fuel payments?
To target financial support at those who need it most due to stretched finances.
Who will still receive winter fuel payments under the new policy?
Only those on pension credit will receive winter fuel payments.
How many people will lose their winter fuel payments due to the cut?
Around 10 million people will lose the benefit.
What has been the response from Labour MPs about the cut?
About 30 Labour MPs are unhappy, but most are expected to abstain from voting.
What is the main reason given for making these cuts?
A £22bn black hole in public finances created by the previous government.
