Monday, September 09, 2024

Winter fuel payment cuts will aid rise of far right and Farage, TUC president warns Starmer


Exclusive: TUC president Matt Wrack tells The Independent the rise of Nigel Farage and summer riots should be ‘a wake up call’ for Keir Starmer to ‘bring hope not austerity’


THE INDEPENDENT

Sir Keir Starmer is braced for a clash with unions as his insistence on removing winter fuel payments from 10 million pensioners sparks a significant rebellion among Labour MPs.

With the prime minister expected to address the Trades Union Congress (TUC) in Brighton, its president has warned that a second wave of austerity will boost the rise of the far right in Britain’s left-behind communities and bolster Nigel Farage’s push for power.

Matt Wrack, the Fire Brigades Union general secretary and current president of the TUC, has warned Sir Keir that his mandate for power is based on a collapse in support for the Tories “not love for Labour”.

“People are in despair, and that’s how [far-right] elements have won support here in the UK and elsewhere in Europe,” he warned.

Mr Wrack admitted union activists arrive at the annual conference “feeling much more positive” about the prospects for their members since Labour’s massive election victory in July. But serious differences remain over economic policy with fears that Sir Keir and his chancellor Rachel Reeves are heralding a new age of austerity similar to George Osborne after the banking collapse.

TUC president Matt Wrack at the Grenfell memorial (PA Wire)

Sir Keir and Ms Reeves insist the cancellation of winter fuel payments for millions of pensioners is necessary to fix a £22bn black hole in Britain’s finances.

The pair have refused to back down even though health secretary Wes Streeting has expressed his disquiet. And an early day motion put forward by new Labour MP Neil Duncan-Jordan opposing the measure has now been signed by36 MPs, including six suspended Labour MPs and 18 current Labour members.

There is anger that the government has refused to publish an impact assessment on the winter fuel payment cuts before MPs vote on the issue in parliament. A written answer to former Labour shadow chancellor John McDonnell said it would be “published in due course”.

While Ms Reeves says it will save the Treasury £1.5bn a year, research carried out by Labour in 2017 – when the Tories proposed means-testing winter fuel payments – suggested the move would kill 4,000 pensioners.

The chancellor confronted angry MPs at a meeting of the parliamentary Labour Party on Monday night, telling them: “There are more difficult decisions to come. I don’t say that because I relish it. I don’t, but it is a reflection of the inheritance that we face.

“When members are looking at where to apportion blame, when pensioners are looking where to apportion blame, I tell you where the blame lies. It lies with the Conservatives and the reckless decisions that they made.”

One person in the room said it was packed with figures on the Labour government payroll as an explanation for the lack of strong opposition to the policy.

The peer told The Independent: “The real problems are going to come when the coffins start coming in.” They added that a concern about the policy is that every pensioner who dies as a result of the cold this winter will now be blamed on the chancellor’s decision.

Speaking exclusively to The Independent, Mr Wrack made it clear he shared the MPs’ anger and warned against using the “black hole” as a pretext for a spending cuts agenda.

“I think there have been some slightly worrying statements,” he said. “The Labour manifesto says there will be no return to austerity, and unions will be insisting on that. We’ve been told to tighten our belts for far too long, and I don’t think people are willing to take any more of that.”

Mr Wrack has become frustrated with the debate centered on Labour “making a choice” for above-inflation wage rises for doctors and train drivers as well as other parts of the public sector with the removal of winter fuel allowance for pensioners and the refusal to end the two-child benefit cap.

Keir Starmer says Labour is making tough choices (Ian Vogler/Daily Mirror/PA Wire)

“We don’t support the cuts in the winter fuel allowance, we support measures to tackle poverty, including lifting the two child limits and so on. So we do have disagreements with some aspects of the government’s policy and approach to this, and we don’t see a contradiction between those and raising wages for working for workers as well.”

Addressing the rise of right-wing politics in the UK, including Nigel Farage’s Reform UK in the general election with almost 15 per cent of the vote and the far-right riots over the summer, Mr Wrack warned that there was a “wake-up call” for unions and Labour.

“There’s a big wake-up call for the Labour government here,” he said. “Many of these areas where we saw those riots are in traditional Labour areas that have been neglected for decades, where, you know, there’s almost seen to be a Labour establishment, as some people would see it.

“We need something different. We need a change. And I think the challenge for the new government is to actually offer something that’s going to make real differences to people’s lives.”

Mr Wrack was as shocked as many when he saw scenes of far-right protesters attempting to set fire to hotels containing asylum seekers and he has linked it with the increase of popularity of Reform at the ballot box and right-wing parties in Europe such as Alternative For Germany, which had strong election results last week.

England and Northern Ireland were hit by riots after three young girls were stabbed to death in Southport (Danny Lawson/PA) (PA Wire)

The veteran union leader accepts unions have a role in countering the message of despair that the far right and populist parties feed on.

“I think that in terms of Reform that the trade union movement needs to take it seriously to win millions of votes cannot be dismissed, and we have to have our answers to that.

“While racism and far-right ideas have a role that have played a part in that also there is the complete lack of hope in many parts of society and in many communities with deindustrialisation and the lack of jobs, decent homes, and public services.

“People are in despair, and that’s how these elements have won support here in the UK and elsewhere in Europe.”

His warning to Sir Keir’s government is that it cannot take voters for granted.

“I don’t think they can take the trade unions for granted, and they certainly can’t take the voters for granted. My interpretation of the election is largely a collapse for the Tories, rather than anything else.

“Part of the collapse of the Tories was the rise in the Reform votes that lost them more seats, and not a huge endorsement of Labour. So if Labour wants to get another term in the next general election, it has to tackle the underlying causes of how the far right and how Reform has grown.”

A Department for Work and Pensions spokesperson said: “We are absolutely committed to supporting pensioners through the triple lock which means that over 12 million pensioners will see their state pensions increase by almost a thousand pounds over the next five years.

“But given the dire state of the public finances we have inherited, it’s right that we target support to those who need it most. Over a million pensioners will continue to receive the winter fuel payment, while many others will also benefit from the £150 warm home discount from October to help with their energy bills over winter.”


TUC conference: unions tell Stamer to U-turn on winter fuel cut

CHANNEL4
Senior Political Correspondent
 9 Sep 2024

Downing Street says the cabinet is united behind the decision to cut winter fuel payments. But ahead of tomorrow’s vote in parliament, the same can’t be said of the Labour party. And the unions are also piling on the pressure.



Clive Lewis gives damning critique of Winter Fuel Allowance cuts

Yesterday
Left Foot Forward


The Labour MP said the move is 'frankly wrong' and offers a 'political opportunity' to Britain First.



Labour MP Clive Lewis has spoken out against his own party’s plans to strip the vast majority of pensioners of Winter Fuel Allowance payments. At this year’s TUC Congress, Lewis argued that Keir Starmer and Rachel Reeves’ proposed cuts to Winter Fuel Allowance are ‘frankly wrong’ and offer a ‘political opportunity’ to Britain First.

Lewis made the comments at a fringe meeting organised by Fuel Poverty Action called ‘Beyond Nationalisation: why we need energy for all’. Energy for All is a campaign calling for – among other things – all households to receive enough energy to cover their basic needs free of charge, with additional energy use being charged at a much higher rate.

At the meeting, Lewis said that he found it ‘very difficult to understand’ why the government is seeking to make cuts to the Winter Fuel Allowance. He told the meeting: “The winter fuel payment goes to the heart of the British energy system and how it isn’t working for so many people. Now, pensioners – many of them – are on fixed incomes. And I find it very difficult to understand why we would want to save – and we wouldn’t save it, but let’s just call it a saving – £1.5 billion and at the same time punish a lot of people who fall off the cliff-edge of pension credit, who won’t be receiving the winter fuel payment.”

Lewis went on to argue that the cuts are unlikely to make the size of savings the government has suggested, and questioned the motivation behind the decision. He said: “I imagine that the number of people who become ill because of this will probably cost the NHS far more than we save. Now, I can’t prove that, but it doesn’t take a big leap of imagination to be able to work that out.

“So it then begs the question: Is this actually about saving the £1.5 billion, or is this more about political discipline rather than economic discipline? And I can’t answer that question, but I do have my suspicions that it’s more about political discipline. And I think to do that on some of the most vulnerable people in this country is frankly wrong and we shouldn’t be doing it.”

Following this, Lewis went on to make similar claims to those made by the former shadow chancellor John McDonnell, who told Left Foot Forward earlier the same day that austerity measures from the Labour Party may drive voters towards the far-right. Lewis argued that cutting Winter Fuel Allowance would give a ‘political opportunity’ to groups like Britain First. He said: “I don’t want a budget that’s going to allow Britain First to start producing leaflets saying ‘protect our pensioners before asylum seekers’. Because that’s what we’ve handed them.

“We’ve handed them a political opportunity to be able to say that – and we shouldn’t. We should be telling people that the Labour government in the sixth richest country is going to ensure that everyone that needs energy in this country is going to be able to have it.”

Later in the meeting, Lewis gave his backing to ‘Energy for All’, saying it’s an “idea whose time as come”, and that he was “so supportive of Energy for All”. These comments were made as part of a wider call for the introduction of Universal Basic Services – a system whereby all people would receive the basic public services they need for free – as is currently the case with healthcare and education – and for public services to be delivered in public ownership.

Lewis argued that publicly owned, universal services will be central to addressing the challenges posed by the climate emergency. “The resources that people need are going to increasingly require the power of the state, of public ownership, to be able to overcome those challenges”, Lewis said, adding: “energy is a classic one, water is another, healthcare is another – but we are increasingly going to see that we need the power of the state, public ownership and democratic control of those key assets to be able to ensure that we can provide for people in the future.”

Members of Parliament are expected to vote on the proposed cuts to the Winter Fuel Allowance on September 10, with dozens of Labour MPs reportedly intending to abstain on the vote.


Chris Jarvis is head of strategy and development at Left Foot Forward


‘Country first, party second’: Keir Starmer to address TUC amid Labour turmoil over winter fuel cuts




By Josh Self
Editor
Monday, 9 Sep, 2024
 Politics.co.uk

Keir Starmer will deliver the keynote address to the Trade Union Congress on Tuesday amid growing turmoil within Labour over the government’s plan to cut winter fuel payments.

The speech will mark the first time a prime minister has addressed the congress in 15 years and stress Starmer’s commitment to a “country first, party second” creed, declaring it the guiding principle of this Labour government.

But the speech will be delivered hours before a tense House of Commons vote on ministers’ plan to scrap the winter fuel allowance for all pensioners in England and Wales, excluding those on lower incomes who received pension credit.

On Monday, union leaders reiterated their call for a U-turn as the TUC gathered in Brighton for the first day of its annual conference.

Speaking to the BBC on Monday, general secretary of Unite the Union Sharon Graham labelled the plan to cut winter fuel payments “completely wrong” and accused the government of “picking the pocket of pensioners”.

Meanwhile, Paul Nowak, the TUC general secretary, said he had “real concerns about this decision” to remove the previously universal payment from all but the poorest pensioners.

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Reports suggest few Labour MPs are expected to openly oppose the government in the commons vote, but that dozens could opt to abstain. Around 30 Labour MPs are said to be unhappy with the decision to cut winter fuel payments from 16th September.

An Early Day Motion condemning the government’s plan has accumulated the backing of 36 MPs, including 17 Labour backbenchers.

The motion, tabled by newly-elected Labour MP Neil Duncan-Jordan, has been signed by veteran left-wingers Diane Abbott and John McDonnell.

McDonnell, alongside six colleagues, had the Labour whip suspended over his July decision to back an SNP amendment to the King’s Speech that called for ministers to scrap the two-child benefit cap.

On this occasion, Starmer has said the issue of whether Labour MPs will be suspended from the party for voting against winter fuel cuts is “a matter for the chief whip”.

In his address to the TUC on Tuesday, Starmer will argue that the Conservative government “salted the earth of Britain’s future” to serve themselves, leaving an inheritance far worse than Labour had imagined.

Calling for an end to “zero-sum ways”, Starmer will champion a cooperative mode of politics, asserting that “partnership” between unions and business is key to fixing the economy.

He will say: “I call now, as before the election, for the politics of partnership. With us in government, with business, and most importantly of all, with working people… the mood is for partnership.

“And not just on pay — on everything. To turn around our NHS, give our children the start in life they deserve, make our public services fit for the future, unlock the potential of clean energy. A new era of investment and reform. The common cause of national renewal.

“Partnership is a more difficult way of doing politics. I know there’s clarity in the old ways, the zero-sum ways: business versus worker, management versus union, public versus private. That kind of politics is not what the British people want.

“We have the chance to deliver for working people: young people, vulnerable people, the poorest in society, because we changed the Labour party. So when I say ‘country first, party second’ — that isn’t a slogan. It’s the guiding principle of everything this government will do. We ran as a changed Labour Party and we will govern as a changed Labour party.


“So I make no apologies to those, still stuck in the 1980s, who believe that unions and business can only stand at odds, leaving working people stuck in the middle.

“And when I say to the public our policies will be pro-business and pro-worker, they don’t look at me as if I’m deluded, they see it as the most ordinary, sensible thing in the world. And I know there will always be disputes, but there is a mood of change in the business world, a growing understanding of the importance of good work and the shared self-interest that comes from treating the workforce with respect and dignity. The productivity gain of fairness which is an opportunity to be grasped.”

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He will add: “I have to level with you, as I did on the steps of Downing Street just over two months ago, this will take a while. It will be hard. But just as we had to do the hard graft of change in our Party now we have to roll up our sleeves and change our country.

“When we finally saw the books, and with trust in politics so low, I had to be honest with the British people when standing in the full sunlight of democracy, I owed it to them to promise only what we knew we could deliver. And yet even in our worst fears we didn’t think it would be this bad.


“The pollution in our rivers, the overcrowding in our prisons, so much of our crumbling public realm — universities, councils, the care system, all even worse than we expected. Millions of pounds wasted on a Rwanda scheme that they knew would never work. Politics reduced to an expensive, divisive, noisy performance, a game to be played and not the force that can fundamentally change the lives of those we represent.”

Addressing the challenges the country faces, Starmer will say: “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. A country where growth not only comes from the enterprise of working people, but where growth serves the interests of working people.

“Living standards rising, not just because we are redistributing from prosperous parts of the country but because we are growing the economy in every community. That is our mission.

“Because 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. Higher growth, higher wages, higher productivity. The shared purpose of partnership as the path through the mess the Tories made, and onwards to national renewal.

“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.”

Speaking ahead of Prime Minister Keir Starmer’s speech, TUC General Secretary Paul Nowak said: “We are delighted to welcome Keir Starmer to Congress – the first Labour prime minister to address delegates in 15 years.

“The PM’s commitment to making working pay, to boosting security at work and to scrapping toxic anti-union legislation a is stark contrast to the Conservatives’ race to the bottom on employment standards.

“The task of rebuilding Britain and delivering decent jobs is an urgent national mission.

“After 14 years of Tory misrule and chaos we understand there are tough challenges ahead. But we share the PM’s ambition for a high-wage economy and stand ready to work with business and government to achieve this.”

Josh Self is Editor of Politics.co.uk, follow him on X/Twitter here.

Politics.co.uk is the UK’s leading digital-only political website. Subscribe to our daily newsletter for all the latest news and analysis.

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