Keir Starmer has suffered a blow after delegates at the Labour conference voted against the UK Government’s decision to cut the winter fuel payment.
The non-binding vote was tabled by trade unions who are furious to make the long-standing benefit for older people subject to means-testing.
Starmer and Rachel Reeves, the Chancellor, have repeatedly said the cut is needed to help plug a £22 billion blackhole in the public finances caused by the previous Tory government.
The motion, named An Economy for the Future, was narrowly carried by a show of hands in a rowdy hall in Liverpool despite pleas to vote against it by Government ministers.
Sharon Graham, general secretary of the Unite union, told conference delegates: “People simply do not understand – I do not understand – how our new Labour Government can cut the winter fuel allowance for pensioners and leave the super-rich untouched.”
She added: “We are the sixth richest economy in the world, we have the money. Britain needs investment, not austerity mark 2.
“We won’t get any gold badge for shaving peanuts off our debt.”
Seconding the motion, the Communication Workers Union’s Alan Tate says he’s been “inundated” with calls from worried members.
He says Labour should be doing the tough job of making the “ultra wealthy” tech giants and “making them pay their fair share”.
“We should be taxing them, not taking away a lifeline for vulnerable people,” he says to loud applause.
“There is nothing responsible about leaving the profits of private equity and investors untouched while working people are asked to balance the books with their pay cheques and benefits”.
Liz Kendall, the Work and Pensions Secretary, told Labour members the new Government has “done more to help the poorest pensioners in the last two months than the Tories did in 14 years”.
She insisted: “Focusing winter fuel payments on the poorest pensioners wasn’t a decision we wanted or expected to make, but when we promised we could be trusted with taxpayers’ money – we meant it.
“And when we were faced with a £22 billion black hole, which the Tories left this year, we had to act, because we know what happened when Liz Truss played fast and loose with the public finances. It was working people and pensioners on fixed incomes who paid the highest price.
“We took what I know is a difficult decision, but let me tell you, Conference: this Labour Government has done more to help the poorest pensioners in the last two months than the Tories did in 14 years.
“The biggest ever drive to get pensioners on pension credit, backed by our commitment to the pensions triple lock. This will increase the state pension by an estimated £1,700 this parliament, with an extra £6 billion of funding forecast next year.
“Conference, this is the difference a Labour Government makes.”
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