Why can Keir Starmer still axe winter fuel payments despite losing Labour conference vote to reverse policy?

The outcome of todays vote will test Starmer’s ability to manage dissent within the party

Keir Starmer (Anadolu via Getty Images)

Labour delegates have voted in favour of a non-binding motion calling to reverse the controversial cut to the winter fuel payments for millions of pensioners.

In an embarrassing blow to prime minister Sir Keir Starmer, he now faces mounting pressure over the policy that has been criticised for being disproportionately harmful to the poorest pensioners.

The motion, tabled by Sharon Graham of the Unite union, was narrowly carried by a show of hands in a rowdy hall at the Labour Party annual conference.

Sir Keir has emphasised the need for economic stability, but union leaders successfully argued that the cuts undermine Labour’s promise of change and are economically unsound.

The outcome of the vote will now test Starmer’s ability to manage dissent within the party. Questions remain about whether he will reverse the policy or not.

Union members campaigning at conference (AFP via Getty Images)

How are the winter fuel payments changing?

The annual tax-free winter fuel payment of between £100 and £300 was introduced in 1997 to help eligible pensioners meet the costs of heating their homes in winter. It was then expanded to all pensioners in 2000.

The government is facing opposition to its decision to means-test the payment, stripping it from millions of pensioners. It means those in receipt of pension credit or other certain benefits will continue to receive them but others won’t.

Some make the point that rich pensioners wrongly get the payment too, but the unions argue that a universal payment to all pensioners ensures nobody falls through the gaps.

Why is it controversial?

The government has been urged to review its decision affecting 10 million pensioners after the regulator Ofgem announced household energy bills will rise by £150 in October.

Sir Keir Starmer has been warned the double hit will lead to disaster for pensioners on low and modest incomes or living in vulnerable circumstances due to ill health.

Since announcing the measure, charities and campaigners have urged the government to reverse the changes. Research from Age UK shows that around two million vulnerable pensioners are likely to miss out, while money expert Martin Lewis has also said Labour should “rethink” the measure.

What did the unions propose?

The vote calls for means testing of the winter fuel allowance to be reversed, an end to fiscal rules that prevent borrowing to invest, plus the introduction of a wealth tax.

The motion to reverse the decision is being put forward by one of the country’s biggest unions Unite and seconded by the Communication Workers Union (CWU), which represents postal workers and the banking sector, among others.

While the vote wouldn’t force a policy change, it would make it harder for Labour to proceed with it.

What happens now?

While nothing is binding about the vote, it puts further pressure on the Labour leadership to act over its controversial decision and gives an indication of the strength of feeling among Labour members.

Earlier this month 18 Labour MPs signed an early-day motion opposing the means-testing of winter fuel payments, but the prime minister managed to stare down his backbenchers and stave off a wider revolt.

MPs voted 348 to 228 to axe the payment on 11 September, rejecting a Tory bid for the controversial policy to be blocked. Just one Labour MP voted against the cut, while another 53 abstained.