With a smile on her face, Rachel Reeves delivered her first speech at Labour’s Annual Conference. Though experts are far from pleased about what she had to say.
When Labour was first elected in July, it didn’t take long for a political crisis to spark after they decided to axe winter fuel payments for everybody but the poorest pensioners in England and Wales. Originally introduced in 1997 by Gordon Brown, the benefit was intended to help elderly people with their heating costs during the colder months. In autumn, a sum of either £200 or £300 was paid to everyone (depending on their age – it never considered income or wealth.
However, two months ago Rachel Reeves announced that from now on the payment would only be given to older people who received pension credit. This is expected to reduce the number who receive the benefit from more than 11 million to around 1.5 million.
Ahead of Labour’s Annual Conference in Liverpool, which is currently taking place until Wednesday 25th September, experts hoped Reeves would back track on the decision, but in a speech delivered this afternoon, they were, once again, let down.
Taking to the stands, Reeves confidently backed the decision to axe winter fuel payments, claiming it will help pave the way to a more optimistic economic future.
Reeves said: ‘I know that not everyone in this hall or in the country will agree with every decision that I make. I will not duck those decisions, not for political expediency, not for personal advantage.
‘I judged it the right decision in the circumstances that we inherited. I did not take those decisions lightly. I will never take the responsibilities of this office lightly.’
As well as defending the winter fuel payment plan, Reeves also backed the government’s decision to raise public-sector pay despite warning of a difficult spending outlook. Economists believe the move could cost up to £10bn.
Reeves explained: ‘We made that choice not just because public-sector workers needed a pay rise, but because it was the right choice for parents, patients and for the British public, the right choice for recruitment and retention, and it was the right choice for our country.’
Yet, almost at the exact moment Reeves was delivering this message, the Royal College of Nursing announced members had rejected a 5.5% pay increase. Trade unions are now organising a vote calling on the government to reverse the cuts to winter fuel payments.
Sharon Graham, General Secretary of Unite – a union dedicated to protecting equality and diversity in the workplace, said: ‘Right now it is fair to say that the Labour leaders have tried to silence the voice of pensioners, workers and communities at party conference in this blatant manoeuvre to block debate on winter fuel cuts and the departure towards austerity mark two. When this becomes widely known there will be real anger among everyday people. Real anger.’
Echoing a similar tone, a number of charities have also supported the idea of withdrawing the winter fuel payment plan. Alfie Stirling, Director and Chief Economist at the Joseph Rowntree Foundation, said cutting the payments will just enhance the UK’s already out-of-control poverty crisis.
‘Families who have been struggling to put food on the table and pay their energy bills are not sharing the Chancellor’s optimism today. They want to know when change begins for them. Her talk of tough decisions has created a fear of what is to come in the Budget, and a dread that this winter will be as bad, if not worse, than the last,’ Alfie remarked. ‘The Chancellor promised an end to austerity, but didn’t signal how she would support families already struggling to make ends meet.’
Alfie continued: ‘Across the UK, families can’t wait for economic growth before they feel their situation improve. By failing to repair the foundations, like housing, welfare and public services, that underpin people’s lives the government also risks failing on its own terms to deliver a resilient economy.
‘As we have shown today, growth on its own won’t reduce poverty. For the economy to thrive we need to unlock the talent and potential of the millions of people currently trapped in poverty and insecurity. The Budget next month must make tackling economic insecurity – across, incomes, housing and care, as well as work – a top priority of the government’s mission for growth.’
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