UK (Parliament Politics Magazine) – The Energy secretary defended Rachel Reeves’ U-turn on winter fuel payments, denying the initial cut was a mistake despite public and political backlash.
Ed Miliband has defended Rachel Reeves after the shadow chancellor reversed her position on cutting winter fuel allowances for pensioners, though he denied that the initial proposal was a mistake.
What did Ed Miliband say about Rachel Reeves’ winter fuel U-turn?
During a BBC interview, Ed Miliband said Labour was right to reverse winter fuel allowance cuts but refused to admit the original plan was a mistake.
He said, “We’ve changed the threshold by listening to the strength of feeling that people had. I think Rachel Reeves deserves credit for that. She’s heard the strength of feeling that people have. She said it can be accommodated within our overall fiscal figures, and that’s why she’s made the change.”
When questioned whether the original proposal to cut winter fuel payments had been erroneous, Mr Miliband said, “No, she took a whole series of decisions to stabilise the nation’s finances. Just put yourself in the shoes of the chancellor. She came into office confronted by a whole series of spending commitments that the last government had made, which they had no idea how they were paying for.”
He stated, “And she was being told, you’ve got to take action to show that we’re going to stabilise the nation’s finances. She initially [did] winter fuel, then she did a whole series of other changes in the budget … that’s the context for this.”
The Energy Secretary supported Reeves’ choice to delay disclosing the funding details until the formal budget presentation, adding, “It’s perfectly normal for a chancellor to set out at a fiscal event … how all the figures add up. This is a relatively small amount of money, and the chancellor [took] a whole series of decisions in the budget last autumn, some of which people have complained about, tax rises on business and the wealthy, to create the room for manoeuvre, to make the change in the threshold that she did.”
He revealed on Tuesday that the government will invest £14.3 billion in the energy sector, calling the investment a crucial move for both energy independence and climate goals.
Mr Miliband said, “We’re actually putting forward the money to make it happen. This is the biggest investment in new nuclear in more than half a century in Britain.”
The Energy Secretary has ruled out any future Chinese investment in the project, stating, “It’s majority public investment in Sizewell C. We’re going to get some private investment but obviously that always goes through national security checks about making sure that any bidders, any parties to this, are people you would want as part of your nuclear power station.”
Mr Miliband rejected calls for an apology regarding the original policy. He added, “The Chancellor came into office, and saw a massive black hole in the nation’s finances. She took a whole series of measures. Now, what’s happened since then is two things. One, we have stabilised the public finances and secondly, we’ve listened to people.”
How will the restored winter fuel payments work and who qualifies now?
Earlier this week, the Treasury released plans to reinstate the allowance for all pensioners whose income does not exceed £35,000. The decision comes amidst widespread public frustration over the reduction, the first policy enacted by the Labour government.
Critics have slammed the move, stating their objection centres on the fact that couples with a combined income reaching £70,000 will also receive the restored benefit.
The policy has been reversed, further emboldening backbench members pushing for more decisive action on child poverty. The government is facing intensified demands to abolish the two-child limit.
Key facts about winter fuel payments
- A payment made by the government to help eligible pensioners with their winter heating costs.
- Can be worth up to £300 per year per household.
- Labour initially cut the payment for 10 million pensioners, linking it only to those claiming Pension Credit, citing economic necessity.
- The Chancellor, Rachel Reeves, has now restored the payment to most pensioners (around 3/4 in England and Wales) with an annual income of £35,000 or less.
- Couples with a combined income over £70,000 will receive the payment but will have to pay it back through tax.