Labour Party
The chancellor admitted that receiving free clothes might look "a bit odd" to some people.
The chancellor will tell the Labour conference, "I can see the prizes on offer if we make the right choices now".
Unite general secretary Sharon Graham also urged to PM to ditch the "cruel" policy of taking winter fuel payments off millions of pensioners.
The deputy prime minister has also become embroiled in the controversy.
Bridget Phillipson held the event in an upmarket Westminster restaurant.
The prime minister's approval rating is now even worse than Rishi Sunak's.
Rachel Reeves and Angela Rayner will also turn down the gifts in future, Labour says.
The Labour conference in Liverpool should be a celebration, but dark clouds are gathering above the prime minister.
"I haven't had a single email about it," Jess Phillips claimed.
The prime minister also defended Labour's decision to axe winter fuel payments for 10 million pensioners.