On 29 July, just three weeks after Labour\u2019s landslide win, Rachel Reeves made her first political mistake. And it was a biggie.<\/p>\n
She announced that households in England and Wales would no longer be entitled to the Winter Fuel Payment<\/a> unless they receive Pension Credit or certain other means-tested benefits.<\/p>\n At a stroke, she stripped 10 million pensioners of up to \u00a3300 in support for gas and electricity bills.<\/p>\n While some recipients are comfortably off and won\u2019t feel the loss, around two million sit just above the threshold for help and definitely will.<\/p>\n For them, it was a bitter blow. And millions still haven’t forgiven her<\/a>.<\/p>\n The Winter Fuel Payment<\/a> cut was only the beginning. Her \u00a340billion Budget tax raid and the \u00a35billion disability benefit squeeze in March have further fuelled anger.<\/p>\n Along with immigration, these policies have been blamed for Labour\u2019s ballot box meltdown last Thursday<\/a>.<\/p>\n For furious MPs and activists, the Winter Fuel Payment<\/a> cut is symbolic of a government that lost its way from day one.<\/p>\n Now Reeves is being urged to reverse course.<\/p>\n Doncaster mayor Ros Jones, who held on by just 698 votes ahead of Reform<\/a>, said: \u201cThe Prime Minister must start listening to those calling for a U-turn on cuts to Winter Fuel Payments and disability benefits.\u201d<\/p>\n Leeds East MP Richard Burgon added: \u201cBy pushing policies like cuts to disability benefits and scrapping the Winter Fuel Allowance, the leadership is driving away our own voters and letting Reform squeeze through.\u201d<\/p>\n Corbynities including former shadow home Secretary Diane Abbott and shadow chancellor John McDonnell have also railed at the Winter Fuel Payment<\/a> cut, along with the \u00a325billion employer’s NI hike on jobs and threats to disability benefits such as the Personal Independence Payment, or PIP<\/a>.<\/p>\n Unite leader Sharon Graham has previously called the Winter Fuel Payment<\/a> axe \u201ca disgraceful betrayal of older voters\u201d.<\/p>\n They don’t just want it restored for the hard up, but for every pensioner to shore up voter support for Labour.<\/p>\n Until now, Starmer and Reeves could afford to ignore Labour’s left flank. After last week, it can\u2019t.<\/p>\n So will Reeves climb down?<\/p>\n Scrapping the Winter Fuel Payment<\/a> saved the Treasury just \u00a31.5billion. That\u2019s a rounding error against our \u00a3150billion annual deficit.<\/p>\n Yet Reeves will be reluctant to change course.<\/p>\n Politicians hate being accused of U-turns. Giving in would be seen as a loss of authority, proof she\u2019s now at the mercy of her critics.<\/p>\n As I wrote yesterday, Labour is boxed in. It daren\u2019t raise taxes, daren\u2019t cut benefits and daren\u2019t borrow more<\/a>.<\/p>\n This puts Reeves in an impossible position. If she holds firm, Labour bleeds votes. If she caves in, Britain risks slipping even deeper into financial trouble.<\/p>\n