Analysis

Labour MPs already stirring against Rachel Reeves' brutal Winter Fuel Payment cut

When Rachel Reeves stood up to give her “Fixing the Foundations” speech on 29 July, few Labour MPs knew what was coming next.

The Chancellor detailed the apparent £22 billion “black hole” in the public finances, which will be repeated ad nauseam until the next election.

But what came afterwards is far more likely to impact Labour’s electoral chances going forward.

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Ms Reeves announced that she was ending the Winter Fuel Payment for those not in receipt of pension credit.

Up to £300 had been paid out to all pensioners to help them with rising energy bills, and was particularly essential after the price shock from Russia’s war with Ukraine.

“Let me be clear, this is not a decision I wanted to make, nor is it the one that I expected to make,” the Chancellor said, “but these are the necessary and urgent decisions that I must make.

“It is the responsible thing to do to fix the foundations of our economy and bring back economic stability.”

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Chancellor Rachel Reeves. Pic: PAChancellor Rachel Reeves. Pic: PA
Chancellor Rachel Reeves. Pic: PA

This caught some Labour MPs off guard. It was not mentioned in the manifesto and there hadn’t been any clear communication around this in advance.

Any Yorkshire Post reader will have noticed our letters section has been inundated with messages from elderly people who have felt betrayed.

Focus groups by the think tank More In Common have shown the depth of feeling against Labour over this move. 

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Robert told More In Common that he felt it was “a serious betrayal of all the principles that the Labour Party was founded upon", while Karin said “I never thought Labour would do that when I voted for them”.

Director Luke Tryl said: “Clearly just one group of pensioners, but a real depth of anger.

“I expected it to be a negative reaction, but was taken aback by how negative, particularly to the means testing element.”

He added: “Having just 34 per cent of the vote means it is not like Labour can afford to lose much of their coalition, they need to grow it.”

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At the same time, the Labour government has offered significant pay rises to junior doctors and train drivers.

Ms Reeves’ argument would be that this cash injection will grow the economy, but that is unlikely to wash with pensioners choosing between heating and eating

One Labour MP told the New Statesman that he’s received more correspondence over the Winter Fuel Payment cut than the war in Gaza.

A backbencher said: “As a standalone cut, it’s almost suicidal. No build-up work, no explanation. Awful politics.”

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And already the party’s MPs are starting to stick their heads above the parapet and criticise the government.

York Central’s Rachael Maskell pointed out that these measures “weren’t a manifesto (pledge), and for that reason, I really urge the government to think again”.

After winning less than 34 per cent of the vote, Labour can ill afford to lose any of its support going forward.

Almost a fifth of seats were won with a margin of less than five per cent, meaning a small swing in votes could have a big impact.

Is Sir Keir Starmer already facing a winter of discontent?

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