- Unions urge reversal of winter fuel subsidy cuts
- MPs fear pensioners may miss out on aid
- Starmer defends cuts due to financial shortfall
Leaders of two of the largest unions have stepped up pressure on the government over its plan to reduce winter fuel subsidies for millions of pensioners in England and Wales.
Unite general secretary Sharon Graham urged the government to “do a U-turn,” while the leader of the PCS union, Fran Heathcote, called it a “mistake” that needed to be “corrected.”
Paul Nowak, president of the Trades Union Congress, which brings together unions, has also stated that the government should “rethink” and seek different forms of support for pensioners.
Sir Keir Starmer, who faces a potential rebellion at a Commons vote on Tuesday, claims the cut is unavoidable due to the country’s financial situation.
More than 10 million seniors will no longer receive annual payments ranging from £200 to £300, which will now only be provided to low-income individuals who get specific benefits.
Charities and many MPs fear that those on low incomes would miss out.
The vast majority of eligible individuals will only receive the payouts if they first apply for pension credit, a state pension top-up. It is believed that 880,000 eligible retirees have yet to collect it.
Ms Graham urged the government to be “big enough and brave enough to do a U-turn” on plans to reduce the allowance, instead proposing implementing a wealth tax to bolster government coffers.
“Leadership is about making choices and knowing when you’ve done something wrong,” she told me.
“The point we’re making here is that there are other taxes that we should be doing [instead].”
Ms Heathcote, the General Secretary of the Public and Commercial Services Union, has highlighted the possibility of industrial action if the government reduces.
She stated that if they continue on their current path, not only with winter fuel payments but also with social security and benefits in general, there will be a real backlash, which could take the form of industrial action… because many unions represent low-wage workers.
Mr Nowak, TUC general secretary, stated that he was ”very concerned” about the impact of means-testing winter fuel payments and that the union expected the government to “rethink” the decision.
He stated that it is appropriate for the chancellor to reconsider such ideas and consider pensioner support.
I hope that in the Budget, the chancellor would provide support options for retirees who are not on pension or tax credit but are not financially secure, so they are not afraid to turn on the heat in winter.
Sir Keir said his new government was “going to have to be unpopular” as he defended his “tough” decision to cut winter heating subsidies.
He accused previous governments of avoiding discussing the issue of winter fuel payments.
“When we talk about tough decisions, I’m talking about… the things the last government ran away from,” he said.
Chancellor Rachel Reeves has argued that the policy is necessary to close a £22 billion “black hole” in the public finances left by the previous government, a position the Conservatives have questioned.
However, some Labour MPs have encouraged the government not to proceed with the program.
11 Labour MPs were among the 27 who signed an early-day resolution (a formal motion presented for debate in the Commons), condemning the scheme as “a bureaucratic and unpopular means test” for pensioners.
Home Office minister Dame Diana Johnson stated that she understood how the vote was a “really difficult decision” for many MPs.
She stated, “Obviously, we don’t want anyone, especially the elderly, to be struggling with energy expenses, which is why it’s critical that the poorest pensioners receive all of the assistance they are entitled to.”
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According to one Labour MP, the vast majority of rebels will abstain and stay within the tent. “Abstention is the new rebellion.”
The vote will pass because the government has a sizable majority. Those opposed to the anticipated cut should abstain rather than risk being suspended for voting against the government.
Seven Labour MPs were suspended from the whip for six months in July after voting against the government’s amendment to repeal the two-child benefit cap.
However, before Tuesday’s vote, Sir Keir did not comment on the potential penalties for dissidents.
When asked if he would suspend rebellious MPs from the parliamentary party, he answered it was “a matter for the chief whip.”
While the ruling only affects England and Wales, the Scottish government has stated that it will abolish pensioners’ universal entitlement to the payout.
The benefit differs from other assistance programs such as Cold Weather Payments and the Warm Home Discount Scheme.
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