UK Prime Minister Keir Starmer navigated his first major challenge as leader on Tuesday, securing parliamentary approval for his contentious plan to cut winter fuel benefits for millions of pensioners.
This move, which involves means-testing the winter fuel allowance, has stirred significant backlash within the Labour party and from its union allies. The proposed changes, which will strip around 10 million pensioners of their winter energy bill support, highlight the balancing act Starmer faces. He must address a £22 billion fiscal shortfall inherited from the previous Conservative government while maintaining party and public support.
Starmer acknowledged that the decision is “unpopular” but emphasized the necessity of making “tough choices” to stabilize the public finances. The Labour leader has spent his early days in office criticizing the Conservatives for the economic troubles left behind, though Tory MPs accuse him of setting the stage for future tax increases.
In a bid to reassure the public, Starmer has urged for “short-term pain for long-term gain,” although he is already facing calls for a more optimistic economic outlook. He has warned that Labour’s upcoming Budget, due in late October, will be “painful.”
On Tuesday, Starmer’s government overcame a significant challenge when MPs voted 348 to 228 against a Conservative motion to block the fuel benefit cuts. Only one Labour MP sided with the opposition, although some Labour lawmakers abstained, narrowing the government’s majority from 167 to 120.
Work and Pensions Minister Liz Kendall defended the decision, stating that it aligns with Labour’s commitment to responsible fiscal management. The winter fuel payments, worth up to £300 for some elderly individuals, are projected to save around £1.4 billion annually.
Despite Labour’s promise that an increase in the state pension from April will offset the loss of the fuel allowance, criticism persists. Unite leader Sharon Graham accused the party of unfairly targeting pensioners while neglecting the wealthiest.
The broad majority secured in Labour’s recent general election victory provides Starmer with a strong position to push through controversial policies. As the next election is likely several years away, commentators suggest now is the ideal time for Starmer to implement tough decisions.
Earlier this year, Starmer suspended seven Labour MPs who supported a motion to reverse the two-child limit on benefits imposed by the previous Conservative administration.
