“we think they should reverse the winter fuel decision, that it was a wrong decision, do a u-turn on it – reverse it, but also talk about them ruling out austerity mark two“
The Labour Party conference is set to debate a union motion on the economy this week which will demand the party in government must turn the page on austerity. The motion takes the recent cut to Winter Fuel Allowance head-on and demands a reversal.
The motion proposed by Unite the Union, and seconded by the Communication Workers Union, sets out a change to announced fiscal rules, with increased taxation on wealth, to deliver public investment whilst lifting incomes – including crucially – a reverse of the recent decision to cut the universal provision of winter fuel payments that has dominated headlines in the run-in to conference.
The composite motion agreed states,
“Conference recognises that a new economic settlement is needed to rebuild our country in the interest of working people. A Labour government cannot be held back by an economic dogma that restricts real investment and asks working people and pensioners to bear the brunt of cuts while wealth accumulates at the top of society.”
And it set out five main demands, including a reverse of the introduction of means-testing for the Winter Fuel Allowance, ending fiscal rules which prevent borrowing to invest; committing to public services and infrastructure, ensuring any public expenditure gaps, at a minimum, are restored through taxing wealth and that there are no further cuts to welfare provision for working people and pensioners, fourthly the introduction of a wealth tax on the top 1%, an excess profits tax, equalise capital gains tax with income tax and apply national insurance to investment income and finally, delivering the investment necessary for a workers’ transition to Net Zero.
Unite General Secretary Sharon Graham told journalists at the conference,
“We think they should reverse the winter fuel decision, that it was a wrong decision, do a u-turn on it – reverse it, but also talk about them ruling out austerity mark two and also – crucially for me – talk about investment in jobs in Britain.”
Dave Ward of the CWU told the BBC this morning, “You can’t ask pensioners who are struggling at just over £12,000 to give up that type of money. It’s not on. It’s a bad decision. And it’s one that I personally dont think stacks up with being a difficult choice when there are other choices could be made to bridge that gap that the Tories have left, through taxing wealth.”
ASLEF’s Mick Whelan, Chair of Labour Unions, also told the BBC this morning,
“We ran on a platform of anti-austerity. We ran on a platform that there were 14 million people in poverty and 1 million in destitution and we were the party to change that. I know it’s going to take a long time to change what’s happened in the past but I know an awful lot of people will support us opposing this [the cut to winter fuel payment].”
Labour MPs too were supportive of the motion.
Richard Burgon MP, Chair of the Socialist Campaign Group of MPs, said:
“The cut to winter fuel allowance will hit pensioners already living in poverty. That’s why I voted against it in Parliament. It’s right that Labour Conference delegates now get to vote on this. We need our Government to listen, think again and drop this policy at the Budget.”
John McDonnell MP, Labour’s former Shadow Chancellor under Jeremy Corbyn, said,
“It’s not too late for the Chancellor to pull back from cutting Winter Fuel Allowance given the massive reaction we have seen against her proposal. If we have a cold winter & the number of excess deaths rises people will never forgive the government ministers who forced this thru.”
Andy McDonald, MP for Middlesbrough and Thornaby East, said,
“It’s positive Labour’s conference will discuss how we move on from Tory austerity. We must end cuts that harm the vulnerable. And it’s vital that a new approach increases incomes and improves services now whilst raising revenue for public investment.”
Rachael Maskell, chair of the All-Party Parliamentary Group on Aging and Older People said,
“the Labour Party was created to fight for the needs of others, not self. Meanwhile pensioners are having their Winter Fuel Payments taken, risking going cold. I trust conference votes to change this.”
The Chancellor Rachel Reeves speaks today before the Leader Keir Starmer’s speech on Tuesday. Already the Chancellor has briefed journalists that she is ruling out a return to austerity reflecting the concern around the scale of opposition to the Winter Fuel Measure, but delegates and Labour’s voters will want to see evidence of that in economic decisions.
As we go to press, the leadership has not yet scheduled these motions, so it may be that the Unite and CWU motion is not debated and voted until Wednesday, but with support from other unions and support from CLP delegates there is a serious possibility it becomes conference policy to oppose the government’s decision of two weeks ago. It should be supported.
Passing the policy may not directly impact policy on winter fuel payments but will serve as a warning ahead of the Budget on 31 October that Labour members and affiliated unions won’t accept austerity measures and should embolden MPs to speak up.
- By Ben Folley who you can follow on x/twitter.
- Follow Labour Assembly Against Austerity on x/twitter.
