The state pension is on track to rise by £460 next year – as Keir Starmer struggles to contain a revolt on scrapping winter fuel payments.
Official figures typically used to set the increase in April showed earnings going up by 4 per cent.
Keir Starmer and Chancellor Rachel Reeves have been highlighting the prospect of a hike to offset the loss of up to £300 from the winter fuel allowance.
However, dozens of Labour MPs are still expected to defy the leadership on the issue in a crunch Commons vote this afternoon.
Although Sir Keir’s huge majority means the result is not in doubt, it will be an important test of the premier’s control over his troops.
Unions piled pressure on ministers yesterday by accusing them of ‘picking pensioners’ pockets’ to balance the books.
Official figures typically used to set the state pension increase in April showed earnings going up by 4 per cent
Keir Starmer and Chancellor Rachel Reeves have been highlighting the prospect of a hike to offset the loss of up to £300 from the winter fuel allowance
In an ominous intervention, the Unite union urged Sir Keir to abandon the ‘very cruel’ policy.
The PM is due to speak at the TUC conference in Brighton this morning before the vote in Parliament.
Ms Reeves last night told panicking Labour MPs she would not back down – and suggested pensioners could afford to tighten their belts this winter.
The Chancellor said she did not ‘relish’ the cut, but warned there would be ‘more difficult decisions to come’ in next month’s Budget.
Ministers have refused to publish an assessment of the likely impact of the cut, which will save £1.5billion a year.
The ‘triple lock’ means the state pension rises by the highest out of earnings, inflation or 2.5 per cent. For April the earnings figure will almost certainly be the top figure.
A 4 per cent increase would mean the full state pension for men born after 1951 and women born after 1953 hitting £11,962.50 next year.
That comes after a £900 increase last year.
The final decision will be made by Work and Pensions Secretary Liz Kendall ahead of the Budget next month, but Ms Reeves has been emphasising her commitment to the mechanism.
Touring broadcast studios this morning, Business Secretary Jonathan Reynolds refused to guarantee that no pensioners would die of cold as a result of the Government’s move.
‘No-one should die of cold in this country,’ the minister told Sky News.
Repeatedly asked whether he could guarantee that not one pensioner would die of cold, Mr Reynolds said: ‘I can guarantee we’re doing everything we can to make sure that not only the state pension is higher and everyone is better off but that support is targeted where it needs to be.’
The Cabinet is ‘absolutely’ united behind the decision, he insisted.
In a message to Labour MPs, Mr Reynolds said: ‘We’ve got to be the team that fixes this country. Don’t rely on your colleagues to make the difficult decisions that are necessary.’
A new assessment by the Resolution Foundation think-tank yesterday warned that 1.3million of the poorest pensioners would be driven deeper into poverty by the move.
Former Labour frontbencher Richard Burgon said the plan ‘will result in the death of pensioners who won’t be able to turn the heating on’.
Ms Reeves last night told panicking Labour MPs she would not back down – and suggested pensioners could afford to tighten their belts this winter
Tory work and pensions spokesman Mel Stride urged Labour to listen to their constituents.
Throwing down the gauntlet to Labour MPs, he said: ‘Do as you said you would and put the country before your party. Vote with us in Parliament, not against us.
‘Change course and reverse your cruel choice to remove the winter fuel payment from millions of vulnerable pensioners.
‘Many driven into fuel poverty this winter will have to choose between heating and eating because of Starmer. And, if Labour MPs let this abhorrent policy go through, it will be because of them too.’
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, cautioned the rise in the state pension will only partially offset the pain for the millions of pensioners who are being stripped of their winter fuel allowance.