Rachel Reeves warns of 'difficult decisions' during showdown with Labour MPs over winter fuel payment cut

Rachel Reeves
Rachel Reeves
PA
Christopher Hope

By Christopher Hope


Published: 09/09/2024

- 20:32

GB News understands that Reeves was pressed at the meeting to adjust the threshold when pension credit is paid to ensure that more people can benefit

Rachel Reeves has warned Labour Party backbenchers and Cabinet ministers “there are more difficult decisions to come" at a packed meeting in Parliament to discuss the controversial axing of the unmeans-tested winter fuel payment.

The Chancellor told the meeting - attended by Cabinet ministers Yvette Cooper, John Healy and Steve Reed - to expect more controversial decisions, taken to mean tax hikes and spending cuts.


GB News understands that Reeves was pressed at the meeting to adjust the threshold when pension credit is paid to ensure that more people can benefit.

However otherwise the meeting passed off peacefully with no hostile attacks from any MP on the policy.

Rachel Reeves

Rachel Reeves spoke at a packed meeting in Parliament

PA

No tweaking of the system will be announced before MPs vote on the cut just after lunchtime tomorrow.

Reeves's spokesman said there were "no plans for further migitations relating to this".

The comments came as Labour MP Richard Burgon told LBC that some of his "constituents will die as a result" of the cut to winter fuel payments, adding: "These cuts will result in the deaths of pensioners who won't be able to turn the heating on."

In opening remarks which were circulated by her aides, Reeves told the meeting: “There are more difficult decisions to come. I don't say that because I relish it. I don't, but it is a reflection of the inheritance that we face.

"So, when members are looking at where to apportion blame, when pensioners are looking where to apportion blame, I tell you where the blame lies. It lies with the Conservatives and the reckless decisions that they made.

"I don't say that because I relish it. I don't, but it is a reflection of the inheritance that we face.”

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\u200bChancellor of the Exchequer Rachel Reeves

Rachel Reeves warned Labour MPs that 'difficult decisions' will be made

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Her spokesman later said that her comments about more difficult decisions related to "spending, welfare and tax", and echoed comments she made in July in the Commons, adding that "those decisions will be taken at the Budget".

At her meeting on the Commons committee corridor, Reeves added: “I understand the decision that this government have made on winter fuel is a difficult decision.

"I'm not immune to the arguments that many in this room have made. We considered those when the decision was made."

She added: “The new state pension has risen by £900 compared with a year ago. That means that pensioners have £900 more in their pockets this year than they did a year ago.

"Tomorrow, we get data for earnings growth, which will inform the increase in the pension next year. We are protecting the triple lock, not just for this year, but for the duration of this Parliament."

In a call for unity, she added: “We stand, we lead and we govern together.”

Rachel Reeves

Rachel Reeves said that the Treasury was "working hard to ensure that all those pensioners who are entitled to pension credit get it

PA

Reeves said that the Treasury was "working hard to ensure that all those pensioners who are entitled to pension credit get it.

"We're making inroads in reaching the 800,000 people who the Tories allowed to go without pension credit, even knowing that they were entitled to it, and we're bringing forward the merger of housing benefit and pension credit to ensure that more pensioners get the support that they are entitled to…

"It is the right thing to do, to target money at a time when finances are so stretched, at people who need them most."

Her spokesman declined to comment on analysis by two experts for GB News that if all 800,000 people were to sign up for pension credit it would wipe out the savings of axing the universal benefit altogether.

Asked after the meeting if any single MP had suggested changes to the policy, her spokesman said: "There was very strong support for Rachel."

Asked if the Cabinet was "on side" with the policy to remove the benefit from so many pensioners, her spokesman added: "Yes. This decision was taken in July. It was a decision taken at Cabinet."

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