The government has “no choice” but to cut winter fuel payments for the majority of pensioners, a minister has said ahead of MPs voting on the controversial plan.
The move – which will see around 10 million people lose the payment of up to £300 to help with energy costs – has been defended by Labour, who said “tough decisions” need to be made in light of the £22bn “black hole” in public finances.
Business secretary Jonathan Reynolds told Sky News: “We have no choice… We’re fixing the foundations [of the economy], and that’s a difficult message today.
“But it’s not just to correct the problem, it’s to make sure your house is better in future and the better future we want, more prosperity for everyone, comes through stability and responsibility.”
However, some MPs from Labour’s own side, as well as charities and opposition MPs, are calling for a U-turn, saying the policy will leave less well-off pensioners with “a heart-breaking choice between heating and eating this winter”.
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Ahead of the vote, Prime Minister Sir Keir Starmer will deliver a speech to the Trades Union Congress (TUC) conference in Brighton, where many in the audience will be in vocal opposition to the policy.
He will attack the previous Conservative government for having “salted the earth of Britain’s future to serve themselves”, but appeal for partnership with the unions to fix it, telling them: “The crisis we have inherited means we must go deep into the marrow of our institutions, rewrite the rules of our economy and fix the foundations so we can build a new home.”
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Sir Keir will add: “Economic rules written in the ink of partnership will be more durable and long-lasting – whoever is in power. So it is time to turn the page, business and unions, the private and public sector, united by a common cause to rebuild our public services and grow our economy in a new way.
“We will keep to the course of change, reject the snake oil of easy answers, fix the foundations of our economy and build a new Britain. More secure, more prosperous, more dynamic, and fairer. A country renewed and returned, calmly but with confidence, to the service of working people.”
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Image: Sir Keir Starmer has stood by the decision to cut the winter fuel allowance. Pic: PA
The winter fuel payment was introduced in 1997 by then Labour chancellor Gordon Brown as a universal benefit, with all people above state pension age entitled to it.
However, the current Labour chancellor, Rachel Reeves, now wants the payment to be limited to those entitled to Pension Credit – around 1.5 million people – to save public money.
Making the announcement in July shortly after her party won the general election, Ms Reeves laid the blame at the door of the previous Conservative government, claiming they had made “commitment after commitment without knowing where the money was going to come from”.
While she said the decision to scrap the benefit was “difficult”, it was “necessary and urgent” to fix the money problems that had been left behind.
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2:57
Chancellor: Labour inherited £22bn black hole
The prime minister has continued to stand by the move, insisting additional “safeguards” are in place for pensioners already on benefits.
He added: “I am determined that we will take tough decisions because the change which is improved living standards, people feeling better off, better public services, dealing with crime and immigration and issues like that, that change will only happen if we fix the foundations now.”
Further potentially unpopular measures, including possible tax rises, are expected next month when Ms Reeves delivers her first Budget.
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PM: Budget will be ‘painful’
But Sky News understands as many as 30 MPs are unhappy with the winter fuel payment cut, though they are likely to abstain on the vote rather than go against the party – especially in light of Labour suspending seven of its MPs in July for six months after they rebelled over keeping the two-child benefit cap.
The general secretary of one of Labour’s major union backers, Unite, also accused the party of “picking the pockets of pensioners”.
Speaking to Sky News from the TUC conference, Sharon Graham said the country was “in crisis” and the new government needed to “make very, very different choices” – including introducing a wealth tax “on the biggest and richest 1% in society”.
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Government ‘picking the pockets of pensioners’
The Conservatives are among the opposition parties putting forward their own motions to try and stop the cut – though with Labour’s large majority, the government is likely to win the vote.
Former prime minister and Tory leader Rishi Sunak reiterated his accusation that Sir Keir was choosing to “cut vital support for pensioners to fund an inflation-busting pay rise for train drivers”, calling it “unnecessary and wrong”.
He added: “The last Conservative government always made sure to protect our vulnerable pensioners, because we believe that those who have worked hard all their lives deserve security and peace of mind in retirement.
“But within weeks of coming into power Labour are cutting the winter fuel payments, with potentially devastating consequences.
“Labour MPs know this is indefensible – they must do the right thing and force the government to come clean about the impact this punishing cut will have.”
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12:00
PMQS: Pair clash over winter fuel cuts
Also speaking ahead of the vote, Liberal Democrat leader Sir Ed Davey said the government “should do the right thing and change course” as cutting the winter fuel payment would “put untold stress on pensioners, with many facing a heart-breaking choice between heating and eating this winter”.
Confirming his party would vote against the cut, he added: “While we understand the dire state the Conservatives left the public finances in, now is not the time to be cutting support to some of the most vulnerable people in our society.
“We cannot stand by and allow millions of pensioners to endure another winter in a cost of living crisis.”
The SNP’s Westminster leader, Stephen Flynn, also urged Scottish MPs on the Labour benches to follow his party’s lead and vote down the change in policy, saying: “The last UK government hammered the economy, public services and household incomes by imposing 14 years of cuts and Brexit.
“The last thing the UK needs now is more cuts from the Labour Party – and pensioners will face a bitter winter if these cuts go ahead.”
Only a quarter of British adults think Sir Keir Starmer will win the next general election, as the party’s climbdown over welfare cuts affects its standing with the public.
A fresh poll by Ipsos, shared with Sky News, also found 63% do not feel confident the government is running the country competently, similar to levels scored by previous Conservative administrations under Boris Johnson and Rishi Sunak in July 2022 and February 2023, respectively.
The survey of 1,080 adults aged 18-75 across Great Britain was conducted online between 27 and 30 June 2025, when Labour began making the first of its concessions, suggesting the party’s turmoil over its own benefits overhaul is partly to blame.
The prime minister was forced into an embarrassing climbdown on Tuesday night over his plans to slash welfare spending, after it became apparent he was in danger of losing the vote owing to a rebellion among his own MPs.
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Govt makes last-minute concession on welfare bill
The bill that was put to MPs for a vote was so watered down that the most controversial element – to tighten the eligibility criteria for personal independence payments (PIP) – was put on hold, pending a review into the assessment process by minister Stephen Timms that is due to report back in the autumn.
The government was forced into a U-turn after Labour MPs signalled publicly and privately that the previous concession made at the weekend to protect existing claimants from the new rules would not be enough.
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While the bill passed its first parliamentary hurdle last night, with a majority of 75, 49 Labour MPs still voted against it – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.
It left MPs to vote on only one element of the original plan – the cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.
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2:21
Govt makes last-minute concession on welfare bill
An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.
The incident has raised questions about Sir Keir’s authority just a year after the general election delivered him the first Labour landslide victory in decades.
And on Wednesday, Downing Street insisted Rachel Reeves, the chancellor, was “not going anywhere” after her tearful appearance in the House of Commons during prime minister’s questions sparked speculation about her political future.
The Ipsos poll also found that two-thirds of British adults are not confident Labour has the right plans to change the way the benefits system works in the UK, including nearly half of 2024 Labour voters.
Keiran Pedley, director of UK Politics at Ipsos, said: “Labour rows over welfare reform haven’t just harmed the public’s view on whether they can make the right changes in that policy area, they are raising wider questions about their ability to govern too.
“The public is starting to doubt Labour’s ability to govern competently and seriously at the same levels they did with Boris Johnson and Rishi Sunak’s governments. Labour will hope that this government doesn’t end up going the same way.”
Image: Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA
It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.
Her spokesperson says it was a personal matter that they will not be getting into.
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Even Kemi Badenoch, not usually the most nimble PMQs performer, singled her out. “She looks absolutely miserable,” she said.
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The Tory leader asked the PM if he could guarantee his chancellor’s future: he could not. “She has delivered, and we are grateful for it,” Sir Keir said, almost sounding like he was speaking in the past tense.
Image: Rachel Reeves looked visibly upset behind Keir Starmer at PMQs. Pic PA
It is important to say: Rachel Reeves’s face during one PMQs session is not enough to tell us everything, or even anything, we need to know.
But given the government has just faced its most bruising week yet, it was hard not to speculate. The prime minister’s spokesperson has said since PMQs that the chancellor has not offered her resignation and is not going anywhere.
But Rachel Reeves has surely seen an omen of the impossible decisions ahead.
How will she plug the estimated £5.5bn hole left by the welfare climbdown in the nation’s finances? Will she need to tweak her iron clad fiscal rules? Will she come back for more tax rises? What message does all of this send to the markets?
If a picture tells us a thousand words, Rachel Reeves’s face will surely be blazoned on the front pages tomorrow as a warning that no U-turn goes unpunished.
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