Keir Starmer was accused of ‘choosing’ to hand cash ‘highly-paid’ train drivers instead of helping pensioners heat their homes during bruising PMQs clashes today.
The premier was berated by Rishi Sunak for axing winter fuel allowance in the first session since Parliament returned from its summer break.
A rattled Sir Keir was jeered as he repeatedly referred to Mr Sunak as ‘the Prime Minister’, insisting the government has to take ‘tough decisions to stabilise the economy’.
The Tory leader shot back that the economy was in better shape than most competitors.
Asked afterwards why Sir Keir had called Mr Sunak ‘PM’ five times, a No10 spokesman said ‘old habits die hard’.
The exchanges came as ministers were slammed for ‘making excuses’ by briefing that the state pension will rise by £400 in April.
The bumper hike due to the ‘triple lock’ has been highlighted as the government scrambles to defuse anger about scrapping the winter fuel allowance for millions of older people.
Keir Starmer was accused of ‘choosing’ to hand cash ‘highly-paid’ train drivers instead of helping pensioners heat their homes during bruising PMQs clashes today
The premier was berated by Rishi Sunak for axing winter fuel allowance in the first session since Parliament returned from its summer break
A bumper state pension hike due to the ‘triple lock’ has been highlighted as Rachel Reeves (pictured) scrambles to defuse anger about scrapping the winter fuel allowance for millions of older people
Mr Sunak said: ‘Under the Conservative government, a low-income pensioner with just £13,000 received not only the winter fuel payment, but also hundreds of pounds of additional cost-of-living support, both of which he has now scrapped.
‘Age UK have said cutting the winter fuel allowance is the wrong policy and, only this morning, we have learned that the vast majority of the poorest pensioners, pensioners in poverty, are going to see that vital support removed.
‘Can he tell the House, very specifically to the pensioners that are watching, how much less support a pensioner on £13,000 will receive this winter?’
Sir Keir replied: ‘No prime minister wants to do what we have to do in relation to the winter fuel allowance, but we have to take the tough decision to stabilise our economy, to ensure that we can grow it for the future. And as I’ve said, we are working hard on pension credit.’
Chancellor Rachel Reeves underlined her commitment to the state pension uprating – which means payments rise by the highest out of inflation, average wages or 2.5 per cent – yesterday.
Figures seen by the BBC suggest that will mean the full state pension for men born after 1951 and women born after 1953 hitting £12,000 next year.
That comes after a £900 increase last year.
The extra, based on earnings figures that are not due to be officially published until next week and roughly equivalent to 3.4 per cent, would in theory offset the loss of up to £300 from the winter fuel allowance.
However, shadow work and pensions secretary Mel Stride said: ‘Next April’s routine state pension increase does not help pensioners losing Winter Fuel Payments this coming winter.
‘Labour repeatedly misled voters at the election saying they had no plans to cut Winter Fuel Payments, as well as matching the Conservative pledge to protect the triple lock. This was not an either-or. Now they are trying to use the triple lock as an excuse for going back on their word.
‘An increase next April in line with earnings is the minimum required in law – Labour would have needed to pass primary legislation to change this. Yet they expect pensioners to be grateful while two thirds of those already in poverty are set to lose their winter fuel support.’
The final decision will be made by Work and Pensions Secretary Liz Kendall ahead of the Budget next month.
The key wage growth figure used in the calculation is for total pay including bonuses in the three months to July, and is published in mid-September.
The crunch CPI inflation rate figure is taken from September, and is published in October.
Earnings growth was 4.5 per cent this month, and if it stays around this level it will determine the state pension rise because inflation is hovering at around 2 per cent.
Keir Starmer looks set to bow to pressure for a vote on means testing the winter fuel allowance amid a brewing Labour revolt.
The government had previously batted away calls from the Tories and Lib Dems to put the issue before the Commons.
Instead ministers were going to force the move to means test the benefit through using a so-called ‘negative’ statutory instrument.
However, senior sources now believe a vote could be held as early as next week. There had been doubts over whether the government could avoid a showdown, with the Conservatives able to use Opposition time to force a division.
The final decision on the pension increase will be made by Work and Pensions Secretary Liz Kendall ahead of the Budget next month
The apparent shift emerged as Ms Reeves defended the winter fuel change during a torrid question session in the chamber – insisting older people had already enjoyed big state pension rises.’The basic state pension is worth £900 more than it was a year ago and will go up again in April next year because of the triple lock, which we have committed to for the duration of this parliament,’ she told MPs.
She faced repeated warnings from her own MPs and Opposition benches about the potential consequences of stopping winter fuel payments for people in England and Wales who do not get Pension Credit or other means-tested benefits.
The policy is expected to strip around 10million pensioners of the £300 payments, saving around £1.4billion this year.
