Skip to main content

Winter is coming…

labour
By Joseph Stephens
10 September 2024
advocacy
government
labour
News

Labour faced its first significant test in government by passing a cut to the Winter Fuel Payment. This afternoon’s vote means the payment will now be means-tested, causing over nine million pensioners to lose their £300 entitlement for covering winter heating costs.

With a government majority of 174, the vote's passage was never in doubt, but attention focused on the potential number of abstentions or rebels. MPs voted 348 to 228 against a Conservative motion to block the policy, reducing Labour's majority to 120 and exposing a clear party divide.

The plan was justified by the government as necessary to address the £22bn financial shortfall left by the previous Conservative administration. Conservatives, however, accused Labour of exaggeration. Among Labour's fiercest critics were prominent figures such as Manchester Mayor Andy Burnham and Hackney MP Diane Abbott.

With pressure mounting from unions, the lead-up to the vote was tense. Rachel Reeves called for party unity as late as Tuesday, but it was likely the Prime Minister’s reputation for ruthlessness that ensured MPs fell into line. Only in July, seven rebels were suspended for opposing his decision to maintain the two-child benefit cap.

The Prime Minister has described the forthcoming October budget as “painful,” signaling potential tax increases. Today's Winter Fuel Payment cut is just the first step in addressing the country’s finances. While Labour’s majority ensures these measures pass, the government faces challenges in communicating consistent messages. For instance, balancing budget cuts with recent public sector pay increases may confuse many voters. The Prime Minister’s task is to retain credibility among both MPs and the electorate.

For any Welsh speakers, our Senior Counsel, Dafydd Rees spoke to BBC Radio Cymru this morning on the Winter Fuel Payments story.