Labour members have voted to reinstate winter fuel payments to every pensioner.
In a major blow for Keir Starmer, delegates at the party’s annual conference in Liverpool backed a motion urging the government to U-turn on the controversial decision to means test the benefit.
Even though it will have no impact on government policy, it is still an embarrassment for the PM to be defeated at a Labour conference so early in his premiership.
The policy – which the PM has insisted is necessary to help fill a £22 billion “black hole” in the public finances left by the Tories – will see 10 million old people no longer receive the payment, which is worth up to £300.
During a debate on the last day of the conference, Unite general secretary Sharon Graham said: “People simply do not understand – I do not understand – how our new Labour government can cut the winter fuel allowance for pensioners and leave the super-rich untouched.”
Alan Tate, of the Communication Workers Union, said the winter fuel payment cut had “overshadowed” the work of the new Labour Government.
He said: “The CWU has been inundated with emails and calls from our retired members worried about choosing between heating and eating.”
But work and pensions secretary Liz Kendall said: “Focusing winter fuel payments on the poorest pensioners wasn’t a decision we wanted or expected to make, but when we promised we could be trusted with taxpayers’ money – we meant it.
“And when we were faced with a £22 billion black hole, which the Tories left this year, we had to act, because we know what happened when Liz Truss played fast and loose with the public finances. It was working people and pensioners on fixed incomes who paid the highest price.
“We took what I know is a difficult decision, but let me tell you, conference: this Labour government has done more to help the poorest pensioners in the last two months than the Tories did in 14 years.
“The biggest ever drive to get pensioners on pension credit, backed by our commitment to the pensions triple lock. This will increase the state pension by an estimated £1,700 this parliament, with an extra £6 billion of funding forecast next year.
“Conference, this is the difference a Labour government makes.”
Earlier, the prime minister had said the Conservatives should apologise for his government’s policy.
He said: “The people who should be saying sorry are the last government who left a hole of £22 billion, and they should be sorry for that and they should apologise for that.”
Both the PM and chancellor Rachel Reeves have repeatedly insisted the government will not U-turn by reinstating the winter fuel payment for all pensioners.