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topicnews · September 2, 2024

Starmer: Cutting fuel prices will help repair ‘the fundamentals’ of the economy

Starmer: Cutting fuel prices will help repair ‘the fundamentals’ of the economy

The decision by Prime Minister and Chancellor of the Exchequer Rachel Reeves would result in a “bureaucratic and unpopular means test” for older people, Poole MP Neil Duncan-Jordan said as he tabled a motion in the House of Commons calling on the Government to delay the move.

In England and Wales, only recipients of pension support or other income-related benefits are entitled to the payment. Ministers say the government’s decision is necessary to plug a £22 billion black hole in public finances.

But Kemi Badenoch, the candidate for the Conservative leadership, accused ministers of making “dishonest” statements about the state of public finances and claimed they were trying to “pull the wool over the eyes of the British public”.

Sir Keir defended the move, which is expected to result in savings of around £1.5 billion this year.

He said: “I don’t want to cut winter heating subsidies… but we need to get the fundamentals of our economy right and that’s what this is about – making sure we get the fundamentals right and then, when we’ve done that, we can build a better future that pensioners and so many other people voted for in this election.”

Responding to Ms Badenoch’s comments, the Prime Minister told reporters during a visit to a primary school in Orpington: “I say I will not be lectured to by anyone from the previous government, which left the worst possible legacy.”

“The country is in a real crisis, the economy is badly damaged, nobody really disputes that.

“There is a £22 billion black hole that is unaccounted for and not on the books. The OBR knew nothing about it.

“So I think the Conservatives could apologize for the mess they have created.

“We’re cleaning up. We’re going to tear everything down and make sure we rebuild the foundation so we can bring about the change we were elected to bring about in this country.”

Prime Minister Sir Keir Starmer visited a primary school on Monday but was questioned by the media about his winter fuel plan (Richard Pohle/The Times/PA)

But in a sign of unrest within the Labour Party, Duncan-Jordan, a member of Parliament who was elected for the first time with an overwhelming majority in July, tabled a motion in the House of Commons calling for a rethink.

The Poole MP’s motion said the measure was being introduced “without prior consultation or impact assessment, nor sufficient time to launch an adequate and effective campaign to promote the use of pension credit”.

It did not take into account the “modest incomes” of those just above the pension threshold. The legislation was also announced ahead of a 10% increase in the energy price cap, which will add around £149 to the average household’s electricity bill from October.

He warned that “colder housing makes older people more vulnerable to health problems such as hyperthermia and respiratory and circulatory diseases” and called for this measure to be postponed until there is a “comprehensive strategy to tackle energy poverty, health inequalities and low incomes among older people”.

The Tories accused the government of being “scared” by refusing to put the plans to a vote in Parliament.

Shadow Secretary of State for Work and Pensions Mel Stride said: “Not only do they want to prevent Parliament from having a say in their plans, they have not published an impact assessment because they want to hide the true cost to pensioners.”

“There is no reason not to allow this debate and vote on it other than to ride roughshod over Parliament. The only reason Labour is not allowing such a vote is because they are afraid of asking their own MPs to vote on this issue.”

The Liberal Democrats had also called for a vote, with their deputy Daisy Cooper saying: “If we push through these cuts without further action to mitigate the impact on millions of poorer pensioners, and with minimal parliamentary scrutiny, we risk destroying public trust in politics and putting the most vulnerable at risk.”