Defiant Keir Starmer faces a difficult return to Parliament this week amid a growing backlash over winter fuel payment cuts.
The PM will be met with angry Labour backbenchers when they come back from the shortest summer break in history. But his team vowed to “roll up our sleeves” and push forward a raft of legislation aimed at undoing years of Tory chaos. A Bill to bring railways back into public ownership is expected to pass through the Commons by Friday. Strict new rules preventing another Liz Truss-style budget disaster are also set to be backed by MPs this week.
Legislation to improve workers’ rights, increase protection for renters and hold failing water companies to account in the coming months. But the Government admits its first Budget on October 30 will be painful as it grapples with a £22billion black hole left by the Conservatives. Both the Tories and the Lib Dems will push for a vote on the Government’s plan to means-test winter fuel payments. The measure means around 10million pensioners will miss out – but those who qualify for pension credit and other benefits will still receive them.
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The decision to restrict the payments, worth up to £300 to pensioners, will save the Treasury £1.4billion this financial year. But it risks a split among Labour MPs, insiders warn. One disgruntled backbencher said the move, coupled with the refusal to scrap the two-child benefit limit, has caused anger. They said: “There’s people right across the political divide who are very unhappy. They need to consider a u-turn over the winter fuel payments. I think this is going to ramp up, there’s a lot of angry people out there.”
A Labour spokesman said: “The Budget will require more difficult choices. But being honest with people about the challenges we face is an essential part of rebuilding our finances and public trust in politics.” Commons leader Lucy Powell said: “After 14 years of the Conservatives, we’ve had to act quickly and act drastically to stop the rot at the heart of our country’s finances, our public services and our politics. Now as we return from the shortest summer recess in history, Labour is ready to roll up our sleeves and pass the laws we urgently need to fix the foundations as we build a better Britain.”
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On Thursday MPs will debate the Great British Energy Bill, setting up a publicly-owned company designed to end the UK’s reliance on energy from overseas. Labour says this will drive down Bills and support the move to clean energy. The Crown Estates Bill, which will be debated in the House of Lords this week, will support offshore wind and new technologies, the Government says.
There will also be tighter rules on MPs getting second jobs in the next few weeks, ministers promised. In the two weeks before the summer recess – which Mr Starmer cut short following the General Election – Labour introduced 10 Bills to Parliament. Key among them were the Budget Responsibility Bill – setting out safeguards to stop a repeat of Ms Truss’s 2022 mini-budget – and the Great British Energy Bill. Also going through the Commons are the Holocaust Memorial Bill and the Passenger Railway Services (Public Ownership) Bill.
8 key things the Government plans to do in the Autumn
RAIL: MPs will this week consider a groundbreaking Bill to bring railways back into public ownership. This follows years of “unacceptably low performance”, the Government says. It would allow public service companies to run rail services when existing contracts end.
BUDGET: On October 30 Rachel Reeves will deliver the new Government’s first Budget. Keir Starmer last week warned it would be “painful” due to the Tory legacy. Details have yet to be confirmed, but inheritance tax and capital gains tax are tipped to rise. The Government is expected to hold firm on its refusal to scrap the two-child benefit cap. Mr Starmer and Ms Reeves say there is no money for the change, which would cost around £3.4billion.
ENERGY: The Great British Energy Bill will be back before MPs this week. This will set up a publicly-owned company headquartered in Scotland. It will cut dependence on energy from overseas and is expected to drive down bills and help develop cheaper and cleaner power.
RENTERS: No fault evictions will be finally banned under a new Renters’ Rights Bill. Landlords will also have to fix issues like damp and mould within strict time limits, and will not be allowed to discriminate against families claiming benefits.
LIZ TRUSS BILL: The Budget Responsibility Bill will put new safeguards in place preventing future Governments from forcing through fiscal events without proper oversight.
KING’S LAND: Restrictions on what can be done on land owned by the King will be lifted by the Crown Estate Bill. This will open up new offshore wind and technology projects, Labour says.
WORKERS’ RIGHTS: A new Bill will outlaw exploitative zero-hour contracts and fire and rehire tactics. Parental leave and sick pay will also be available from day one of a new job, and employees will have greater flexible working rights.
WATER FIRMS: Water firm bosses will face criminal liability for not dealing with pollution, and regulators will be able to block bonuses. New ‘severe’ fines will be brought in and customers will get new rights to hold chiefs to account.