Cries of'shame' rang out in the Commons on Tuesday as Tory efforts to save winter fuel payments for millions of pensioners failed.The Prime Minister's cut passed by a vote of 120. Only one Labour MP who had not yet had his whip suspended voted against the government: Jon Trickett. Liz Kendall, the Work and Pensions Secretary, has accused the Conservatives of "faux outrage" over the winter heating payment.
The deputy prime minister responded: 'I would say to the phoney anger of members opposite, the faux outrage of members opposite who left 880,000 pensioners, the absolute lowest, not obtaining the pension credit they are due to'.And I would ask all honourable members to collaborate with us and their local governments to ensure pensioners receive the funds they are entitled to."She also told the Commons: "As my right honourable friend the Chancellor (Rachel Reeves) and the Prime Minister (Sir Keir Starmer) have said, this is not a decision we wanted or expected to make, but when we promised to be responsible with taxpayers' money, we meant it, because we know what happens when members opposite play fast and loose with the public finances.
“Working people and pensioners on fixed incomes paying the price with soaring interest rates, mortgages and inflation.”
Amid simmering unrest in Labour ranks, Sir Keir addressed the Trades Union Congress conference in Brighton before the crunch Commons vote.
He tried to defuse the anger among some delegates by stressing a “more prosperous, secure and dynamic country... is at the end of the tunnel”. But Labour rifts were laid bare with veteran Left-winger Diane Abbott launching a stinging attack on the new Government.
The MP for Hackney North and Stoke Newington told BBC radio: “It’s wrong to play games at the expense of the poorest pensioners just to look tough.
Greater Manchester Mayor Andy Burnham on Tuesday morning ratcheted up the pressure on Chancellor Rachel Reeves over the controversial policy.
“I would just ask the Government not to rule out the possibility of a higher threshold or indeed a taper of winter fuel allowance because our experience in Greater Manchester is that pensioners are often reluctant to apply for the pension credit,” he said.
From this autumn, older people in England and Wales not on pension credit or other means-tested benefits will not get winter fuel payments, worth between £100 and £300. Ms Reeves insists the measure is needed to help plug an alleged £22 billion black hole in the public finances which Labour claims was left by the Tories. Ex-chancellor Jeremy Hunt has flatly denied this.
Sir Keir also signalled that tighter public pay settlements were in the pipeline despite finding funds to end strikes by junior doctors and train drivers.
“I do have to make clear... that this Government will not risk its mandate for economic stability, under any circumstances,” he stressed.
Business Secretary Jonathan Reynolds also made clear that there will likely be tax rises, as well as more public spending cuts, in the Budget next month.
Rejecting claims that some pensioners will die of cold because of the fuel payment cuts, he said: “The state pension this year is higher than last winter and energy bills are lower.” Latest figures pointed to the state pension rising by £460-a-year in April under the so-called “triple lock”.
But Unite union general secretary Sharon Graham has accused Labour of deciding to “pick the pocket of pensioners” and called instead for a wealth tax to raise funds.
At the TUC, Sir Keir promised new workers’ rights and better industrial relations with businesses. “I make no apologies to those, still stuck in the 1980s, who believe unions and business can only stand at odds,” he said.