Embarrassing blow for Keir Starmer as Labour members vote for £300 winter fuel payment cut U-turn

The motion, named An Economy for the Future and tabled by Sharon Graham of the Unite union, was narrowly carried on Wednesday morning by a show of hands in a rowdy hall at the Labour Party annual conference in Liverpool.

Also backed by the Communication Workers Union, the result will frustrate Sir Keir, but is non-binding.

Sharon Graham, the general secretary of Unite, told members: “I do not understand how our new Labour government can cut the winter fuel allowance for pensioners and leave the super-rich untouched. This is not what people voted for. 

"It is the wrong decision and needs to be reversed."

Ms Graham then pointed out the UK is the sixth richest economy in the world. She said: "We have the money. Britain needs investment, not austerity mark two. We won't get any gold badge for shaving peanuts off our debt.

"These fiscal rules are self-imposed and the decision to keep them is hanging like a noose around our necks."

Defending the government, work and pensions secretary Liz Kendall insisted the party had “done more to help the poorest pensioners in the last two months than the Tories did in 14 years”.

She told the Labour party conference: “Focusing winter fuel payments on the poorest pensioners wasn’t a decision we wanted or expected to make, but when we promised we could be trusted with taxpayers’ money – we meant it.

“And when we were faced with a £22 billion black hole, which the Tories left this year, we had to act, because we know what happened when Liz Truss played fast and loose with the public finances. It was working people and pensioners on fixed incomes who paid the highest price.

“We took what I know is a difficult decision, but let me tell you conference - this Labour government has done more to help the poorest pensioners in the last two months than the Tories did in 14 years.

“The biggest ever drive to get pensioners on pension credit, backed by our commitment to the pensions triple lock. This will increase the state pension by an estimated £1,700 this parliament, with an extra £6bn of funding forecast next year.”

There was also support for the government from members, with one, Maggie Cosin, telling conference she did not need the payment and the money should be used to help children and others in need.

She said: “Every single year, £200 comes into my bank account and every year I go and buy stuff for the food bank with it. I don’t need it, the children of this country need it.”

Ms Cosin said there was a need to “sort the economy”, adding: “It’s not a matter of taking it away from poor pensioners, it’s a matter of getting it to others.”

Earlier shouts of “save the winter fuel” could be heard in the conference hall, as activists protested at the Unite stand in the venue. Responding to the result, SNP Westminster leader Stephen Flynn called for the Prime Minister to listen to the membership.

He said: "Keir Starmer must finally listen to voters, admit he got it wrong and U-turn on the Labour government's damaging cuts to the winter fuel payment for millions of pensioners.

"The fact that the Prime Minister's own party members feel obliged to speak out, and demand he reverse these cuts, should tell him just how angry voters are at his cuts.

"Voters are furious that while Keir Starmer and Labour government ministers have been lining their own pockets with more than £800,000 of designer clothes and freebies, they are imposing austerity cuts on the rest of us and robbing £500 from pensioners this winter."