Sir Keir Starmer’s Government on Tuesday denied it was running scared of Commons scrutiny over its decision to scrap universal winter fuel payments for pensioners, as MPs grilled Chancellor Rachel Reeves over the controversial move.
Ahead of her first budget next month, Ms Reeves said the move should be offset by increases to pensions and lower energy prices this winter, as she urged those eligible to claim pension credit.
“We inherited a £22 billion black hole from the previous government who made unfunded spending commitments with no idea how to pay them,” she told the Commons.
“When I became Chancellor I took an immediate audit of the spending situation to understand the scale of that challenge, and I made difficult decisions to put the public finances on a sustainable footing.
“They were tough decisions, but they were the right decisions.
“This includes the decision to make the winter fuel payment better targeted so pensioners who need it most, will get it alongside pension credits.”
For the first time after the summer break, the Prime Minister convened his Cabinet amid growing disquiet from some Labour backbenchers over the plan to means-test the payments.
Asked about Conservative and Liberal Democrat demands to hold a vote on the plan, Defence Secretary John Healey said that in next month’s budget debate, “you'll see votes in the normal way”.
“That would be an opportunity for the House of Commons to vote on a range of measures that the Government will have to take, and that range of measures will be to deal with a financial inheritance, a situation that nobody, including us, imagined would be as bad as it was,” he told BBC Breakfast.
From mid-September, only those receiving pension credit or other means-tested benefits will be eligible for the payment in England and Wales as a result of the Government’s decision.
Sir Keir on Monday defended the move, which is intended to save around £1.5 billion this year, after it came under attack from Tory leadership hopefuls including Kemi Badenoch.
“I think that what the Conservatives could do was to apologise for the mess that they made,” he said.
“What we’re doing is cleaning it up. We’re going to strip it out, make sure that we rebuild the foundation so we can bring about the change that we were elected to bring about in this country.”
But the Government faces resistance in its own ranks too. Poole MP Neil Duncan-Jordan has tabled a Commons motion calling for the Government to postpone the move, noting it will come in as the energy price cap goes up by 10% this winter.
Labour MP Sam Rushworth (Bishop Auckland) said the village of Copley in his constituency was the snowiest in England, and many pensioners were living in fuel poverty.
“They’re not entitled to pension credit. They live in cold, stone-built houses,” he said.
“What assurance can the Chancellor give to those pensioners that this Government will help to warm their homes and ensure that they do not struggle to heat their homes this winter?”
Ms Reeves said that the state pension is £900 more this year than last year thanks to the so-called triple lock, and that energy bills were lower overall.
