Keir Starmer appears poised to yield to mounting pressure for a parliamentary vote on the proposed cuts to the winter fuel allowance, as dissent within the Labour Party grows.
The government had initially dismissed calls from the Conservatives and Liberal Democrats to bring the issue before the Commons, opting instead to push the means-tested benefit changes through via a 'negative' statutory instrument.
However, senior sources now suggest that a vote could take place as early as next week. Doubts had been raised about whether the government could avoid a confrontation, with the Conservatives potentially using Opposition time to force a division.
The shift comes as Chancellor Rachel Reeves defended the winter fuel allowance changes during a tense question session in the Commons, arguing that older people have already benefited from significant state pension increases.
Despite her defense, Reeves faced strong opposition from both Labour MPs and the Opposition, who warned of the serious consequences of ending winter fuel payments for pensioners in England and Wales who do not receive Pension Credit or other means-tested benefits.
The policy is expected to affect around 10 million pensioners, stripping them of the £300 payments and saving approximately £1.4 billion this year.
During Treasury questions, Reeves declined to speculate on the upcoming Budget, following demands from the Conservatives for assurances that she would not increase taxes on pensions. She reminded the Commons that tax announcements would be made during the Budget on October 30, alongside an independent forecast from the Office for Budget Responsibility.
Reeves blamed the previous Conservative government for leaving a "£22 billion black hole" due to "unfunded spending commitments" and emphasized the difficult decisions she had made to stabilize public finances, including the targeted adjustment of the winter fuel payment to ensure it reaches those who need it most.
Labour MP Rachael Maskell highlighted the rising cost of living, noting that the average rent increase in York exceeded the state pension rise by £380 this year. She expressed concern for pensioners above the Pension Credit threshold who face hardship without the winter fuel payment.
Reeves responded by pointing out the increased value of the basic state pension, which is £900 higher than a year ago and will rise again next April due to the triple lock. She also mentioned ongoing efforts to boost Pension Credit uptake through collaboration with local authorities.
The triple lock ensures the state pension will increase by inflation, average wage growth, or 2.5 percent, whichever is highest.
Labour MP Paula Barker cited Age UK's report that approximately one million pensioners, living just above the poverty line, would miss out on the winter fuel payment due to small occupational pensions. Barker asked if Pension Credit would be backdated, to which Reeves confirmed it could be, for up to three months.
Conservative former minister Dame Harriett Baldwin criticized Reeves, accusing her of making a "chilling political choice" to balance the nation's finances on the "frailest shoulders." Wendy Morton, another Tory former minister, echoed these concerns, noting that thousands of pensioners in her Aldridge-Brownhills constituency rely on the winter fuel payment.
Reeves emphasized the importance of ensuring that the 800,000 pensioners who missed out on Pension Credit under the previous Conservative government now receive this support, as these are among the poorest pensioners currently living in poverty.
Earlier, Liberal Democrat MP Steve Darling highlighted that 21,000 pensioners in his Torbay constituency would be impacted by the cuts. Photo by Rwendland, Wikimedia commons.