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The UK government will seek to soften the blow of the cut to the winter fuel payment on poorer pensioners, a minister said on Monday, as Sir Keir Starmer tries to allay growing concern among Labour MPs, trade union leaders and charities.
Dame Diana Johnson, a Home Office minister, said on Monday that ministers were considering ways of helping some of the 10mn pensioners who will lose the winter fuel payment.
Asked whether ministers would consider a social tariff — lower-priced energy for poorer households — or a different way of means-testing the winter fuel credit, Johnson said those options would be reviewed.
“I’m sure across government all these measures are being looked at,” Johnson told the BBC Today programme. “We have a Budget in October as well.”
Johnson added: “We all understand how difficult this is — people are very exercised by this.” She added: “We need to do everything we can to mitigate what you’re describing.”
Her comments come as Starmer prepares to address the Trades Union Congress on Tuesday morning ahead of a vote on the winter fuel payment in parliament later that day, which could lead to some Labour MPs abstaining or voting against the government.
Rachel Reeves, chancellor, is also expected to face criticism over the cut, which is expected to save £1.4bn, at a meeting of the Parliamentary Labour party on Monday evening.
Ten Labour MPs have signed a non-binding early-day motion calling for the measure to be delayed, arguing it has not undergone a proper impact assessment.
Sharon Graham, leader of Unite the Union, said Starmer had made an “error” by overseeing the removal of the £300-a-year payment to all but the poorest pensioners.
“It’s wrongfooted. They should change their decision. And he needs to be big enough and brave enough to say, ‘look I’ve made an error here’. People make errors. Leadership is about choices, and knowing when you’ve done something wrong,” Graham told the BBC.
The Unite leader said the government should instead be targeting the richest billionaires in Britain. Reeves has already signalled that taxes on wealth will rise in the Budget. “Labour get one shot to get this right,” said Graham. “They’ve got to make different choices. And of course, people may vote with their feet at the next election.”
Meanwhile, Paul Nowak, general secretary of the TUC, urged the government to rethink the plan and consider other forms of support for pensioners.
“I think it’s right the chancellor should rethink those plans and think about support put in place for pensioners,” he said. “I hope in the Budget the chancellor will set out support available for pensioners who aren’t on pension or tax credit, but who are not well off by any means, to make sure that they are not frightened to turn on the heating this winter.”
Fran Heathcote, general secretary of the PCS union, said there could even be strikes in response to the cuts.
“I can see a situation where, if they continue along the line that they’re heading with, not just winter fuel payments but with social security and benefits more generally, there will be a real backlash and that could take the form of industrial action . . . because lots of unions represent low-paid workers,” she said.
Starmer on Sunday defended the decision, saying the Labour government elected in July would have to be “unpopular” at times.
“We’re going to have to be unpopular — and tough decisions are tough decisions,” Starmer said on BBC One’s Sunday with Laura Kuenssberg show.
Health secretary Wes Streeting also argued on Sunday that the move was essential to “balance the books”, but expressed regret, conceding he was “not remotely happy about it”.
He admitted ministers were enduring “political pain” over the plan, but hoped pensioners angered by the move would acknowledge that “this isn’t a government that ducks difficult decisions or pretends you can spend money you don’t have”.