LABOUR MPs have reportedly been told to hammer home the message “this is not austerity” after Rachel Reeves confirmed swingeing cuts in a bid to plug a £22 billion “black hole”.
Among the announcements, the Chancellor has made a decision to take away the winter fuel payment – worth between £100 and £300 - from pensioners who do not receive pension credit or other means-tested benefits from this autumn.
The decision has been blasted by Age Scotland who say it will take away money from some of the lowest income pensioners in the country.
But according to The Times, Labour MPs have been sent “lines to take” on the Chancellor's bumper pay rise for public sector workers while announcing £5.5 billion of cuts this year.
"We have just delivered the largest public sector pay rise in over a decade - this is not austerity," a document sent to MPs says. “We can’t afford not to make these pay awards.”
Making the winter fuel payment means-tested is described as a "tough choice but a necessary one".
Public sector workers such as teachers and doctors are set to receive pay rises worth £9.4bn.
Around 10 million pensioners across England and Wales will lose their winter fuel payments while there is uncertainty over what will happen in Scotland later in the year.
From September it will become a devolved benefit and Public Finance Minister Ivan McKee (above) told the BBC the Scottish Government would “very much like” to provide universal cover.
However, he added ministers will need to “look at the numbers very, very closely”.
Asked if the benefit would have to be means tested, McKee said: "Who knows?"
Age Scotland has said the move by Reeves will push tens of thousands of low income pensioners in Scotland further into poverty.
Katherine Crawford, chief executive, said: “This move will effectively take money away from some of the lowest income pensioners in Scotland.
“There are currently more than 150,000 pensioners living in poverty in this country, and we know that many more are living on incomes just above the pension credit threshold. They will now miss out on a payment which could help them heat their homes and stay warm over winter.
The charity said it has already been receiving calls from older people who are distressed by the announcement and worried about what lies ahead.
Crawford added: “We know that around 123,000 pensioners in Scotland who are eligible for pension credit are not claiming it – and they are some of the people who are going to be worst affected when the payment is withdrawn.
“The winter fuel payment is due to be devolved to the Scottish Government and our hope is that it will be restored as a universal benefit, particularly in light of the fact that Scotland does generally experience worse weather than other parts of the UK and more than half of those who receive it use it as an important part of winter budgeting.”
Scottish Labour leader Anas Sarwar has come under fire after he said in the run up to the election he did not “accept” there will be spending cuts.
The Institute for Fiscal Studies (IFS) had consistently warned the Labour Party that they would be forced to make £18 billion of cuts over the course of the next parliament if they chose to maintain the Tories’ spending plans.
However, the party now claims that it has inherited a worse financial situation than spelled out by the Office for Budget Responsibility (OBR) before the election.
In 2021, Sarwar called for the winter fuel payment to increase by £70 at a Labour conference in Brighton.
He said: "By expanding the Winter Fuel Payment and increasing it by £70, we can help the 600,000 people living in fuel poverty."
