Chancellor Rachel Reeves faced down potential rebels in a private meeting with Labour MPs ahead of a vote on the government’s plan to cut the winter fuel allowance. Reeves justified the move as necessary to address a £22bn public finance gap, despite concerns about the impact on pensioners. The Treasury confirmed there would be no further concessions to ease the cuts.
Despite growing discontent, Keir Starmer is expected to emphasize the need for tough economic decisions in a speech at the Trades Union Congress. Reeves warned of more challenges to come in the economy, preparing MPs for potential tax rises and spending cuts in the upcoming budget.
During the meeting, only a few MPs expressed concerns about the means testing threshold for the winter fuel allowance. While mass abstentions are expected in the vote, rebels could face consequences like the suspension of the whip, similar to previous incidents. Many MPs plan to abstain, with some hoping for a concession from the Treasury.
Anti-poverty organizations warned that the cut could push an additional 100,000 pensioners into poverty. Criticism of the Labour Party’s decision to scrap the payment for most pensioners has been voiced by trade union leaders.
Despite the backlash, Downing Street reported an increase in pensioners signing up for pension credit since the means-testing announcement. The TUC will debate an amendment opposing the cuts on Tuesday. Overall, MPs are grappling with tough decisions amid concerns about the impact on vulnerable pensioners.
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