One of Labour’s most powerful union backers is threatening the government with legal action over cuts to winter fuel payments.
Unite’s action comes after Rachel Reeves refused to cave into pressure at the Budget to cancel the decision to scrap the payments for millions of pensioners.
The Chancellor has argued the difficult decision was necessary to plug the £22billion blackhole in the public finances she inherited from the Tories.
But Unite – the largest trade union and major Labour donor – is now warning the government it has until Thursday to reverse the move, or face a possible judicial review. The union has sent a pre-action letter to the Work and Pensions Secretary Liz Kendall, warning the cut will “likely cause an increase in cold related deaths”.
General Secretary Sharon Graham said: “People do not understand, I do not understand how a Labour government has taken away the fuel allowance of millions of pensioners just as winter approaches. Given the failure to rectify this in the budget, Unite has now commenced judicial review proceedings challenging the legality of the policy.”
She added: “It is not too late for Labour to register the hurt that this cruel policy has caused, step back from picking the pockets of pensioners and do the right thing.”
In September members of the union, including Ms Graham, also staged a protest at the Labour party conference, shouting “save the winter fuel”. Unite spearheaded a non-binding motion, which Labour members backed in a blow to Keir Starmer, calling for the cut to be reversed.
Documents released by the Office for Budget Responsibility (OBR) alongside the Budget last week estimated £1.6billion will be saved a year through the measure. They said it will impact around 9.2million pensioners, with an average loss of £170-per-year.
A Government spokesman said: “We are committed to supporting pensioners – with millions set to see their state pension rise by up to £1,700 this parliament through our commitment to the triple lock. Over a million pensioners will still receive the winter fuel payment, and our drive to boost pension credit take up has already seen a 152% increase in claims. While many others will also benefit from the £150 warm home discount to help with their energy bills over winter.”