Greater Manchester Mayor Andy Burnham urged Rachel Reeves to consider softening cuts to winter fuel payment for pensioners as Labour MPs were mulling a revolt in a crunch Commons vote.
Mr Burnham, one of Labour’s most senior civic chiefs, blamed the previous Tory administration for the state of the public finances inherited by Sir Keir Starmer’s government.
But he still appealed for the Chancellor to examine a higher threshold, than the pension credit, or a taper so more pensioners keep the winter fuel allowance.
Former Cabinet minister Mr Burnham told BBC radio: “It’s going to be very difficult for MPs today.
“It’s clear to me that the Government has been dealt a very bad hand of cards from the previous Government when it comes to the public finances.
“I also think that there is a case for reform of the winter fuel allowance.
“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 for a number of reasons and actually the threshold at which you get it is pretty low any way.”
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 as part of plans to plug an alleged £22 billion black hole in the public finances which Labour claim it was left by the Tories.
Former Chancellor Jeremy Hunt flatly dismissed this accusation that he left the public finances in such dire straits.
Dozens of Labour MPs including some in London such as Diane Abbott, who represents Hackney North and Stoke Newington, were expected to abstain, vote against the Government, or not turn up for the debate on the winter fuel payments on Tuesday afternoon.
Business Secretary Jonathan Reynolds urged Labour MPs to back the Government's cut to the winter fuel allowance in a vote on the plans later on Tuesday.
Speaking on Times Radio, the minister said: "Fixing the foundations of the country isn't just about difficult things like this, which are decisions that ideally you wouldn't have to make. It's about how you get to a better future.
"And that is exactly what we're trying to do and that is what I would ask all colleagues to recognise and support today."
He insisted the Government has "no choice" over cutting winter fuel allowance.
Asked why it was not in the Labour election manifesto, he told Sky News the party "did not know the situation we would inherit".
Asked why the party was pursuing the policy, he said: "We have no choice."
It was put to him that pensioners had been given no time to prepare, to which he replied: "The nature of what we've inherited and the challenges that that presented required some immediate decisions."
Sir Keir Starmer on Monday said he recognised that scaling back the winter fuel payment was a “really tough decision” but said Labour must “secure the foundations” of the economy as he faces a potential backbench revolt over the plans.
The Prime Minister told Scottish lobby journalists in Downing Street: “Let me first recognise this a really tough decision that we’ve had to make.”
Ministers have also warned of likely tax rises and more public spending cuts in the Budget in October.
Some 17 Labour MPs, including Bell Ribeiro-Addy who represents Clapham and Brixton Hill, have signed a Commons motion put forward by Neil Duncan-Jordan calling on the Government to delay implementing the winter fuel payment cuts.
The motion has also been backed by six of the seven MPs who lost the Labour party whip in July after voting against the King’s Speech over the Government’s refusal to abolish the two-child benefit cap.
They include John McDonnell, MP for Hayes and Harlington, and Apsana Begum, MP for Poplar and Limehouse.
A Number 10 spokeswoman said there was no dissent among ministers over the planned cut in winter fuel payments in a Cabinet meeting on Monday.
The move is expected to reduce the number of pensioners in receipt of the up to £300 payment by 10 million, saving around £1.4 billion this year.
Unite union general secretary Sharon Graham, though, has accused Labour of deciding to “pick the pocket of pensioners” and called instead for a wealth tax to raise funds.
The Chancellor wrote in The Telegraph on Monday that the Treasury estimates maintaining the triple lock will make a state pension worth around £1,700 more by 2029.
The triple lock guarantees the state pension will rise each year by the highest of either inflation, wage increases or 2.5 per cent.
