Nigel Farage warns of more 'shocks' to come in Labour budget after winter fuel axe

Nigel Farage warned of more "shocks" to come in Labour's first budget amid a backlash over the axing of winter fuel payments for most pensioners.

The Reform UK leader hit out at Sir Keir Starmer's Government for "making economic decisions on the basis of who will vote for them at the next election" after bumper pay offers to striking workers.

Backing the Daily Express's winter fuel campaign, the Clacton MP urged Chancellor Rachel Reeves to U-turn on the controversial decision to scrap the payments for around 10 million older people.

Writing in the Express, he said: "This Government is making economic decisions on the basis of who will vote for them at the next election.

"It is a deeply cynical policy that is playing out before us as public sector workers receive huge pay rises whilst 10 million pensioners will have the winter fuel payment removed.

"I am happy to join the Express campaign to urge the Chancellor, Rachel Reeves, to reconsider her raid on pensioners."

The arch-Brexiteer, who made a sensational return to frontline politics in June, raised fears about what other measures Ms Reeves will unveil in her budget on October 30 which she is widely expected to use to hike taxes.

Mr Farage said: "Whilst we fight the Chancellor on this important issue I wonder what other shocks will come in the budget at the end of October?"

He blamed net zero policies for high energy prices, and pointed out that regulator Ofgem price cap is hiking the price cap this winter.

He said: "As a result of the net zero policies of both main parties we already have very expensive energy.

"We pay far more for electricity than our continental neighbours and have not benefited from our own gas reserves as the Americans have done.

"All the signs now point to energy prices rising further in the coming months, that is why the winter fuel allowance matters to so many people. The rising energy price cap rather proves my point."

Mr Farage urged older people to check if they are eligible for pension credit, which qualifies them for the winter fuel payment under the change.

The annual payments of up to £300 were previously paid to all pensioners, regardless of their income.

But Ms Reeves blamed the state of the economy last month when she announced that they would be restricted to people on pension credit.

The Chancellor claimed Labour had inherited a £22billion "black hole" in the public finances from the previous Conservative government.

The policy is expected to reduce the number of pensioners who receive payments by 10 million, from 11.4 million to 1.5 million, saving some £1.4 billion this financial year.

But the move has sparked an intense backlash from opposition parties, charities and even some Labour backbench MPs.

Campaigners have warned older people face a choice between paying for food and fuel in light of a 10% rise in the energy price cap from October.

Up to 880,000 further households are estimated to be eligible for pension credit but do not claim it.

There are also fears about the impact on pensioners with incomes just above the limit for claiming pension credit.

It comes as the new Government has faced criticism over its deals with public sector workers and strike action.

The Chancellor last month announced the Government would accept the recommendations of pay review bodies to grant millions of public sector workers above-inflation pay rises of between 5% and 6%.

Meanwhile, junior doctors will be given pay increases of around 20% over two years and a multi-year pay offer including a backdated 5% increase for 2019 to 2022, 4.75% for 2022 to 2024 and a further 4.5% for 2024 to 2025 has been made to train drivers as part of efforts to end industrial action.

The new rules on winter fuel payments are due to come into force on September 16.

But the Conservatives have launched a bid to block the move after secondary legislation, which does not require a debate in the House of Commons, was laid last week.

The Tories submitted an Early Day Motion (EDM) urging the Government to back down on the policy and demanding a Commons vote on the issue.

Former prime minister Rishi Sunak, shadow chancellor Jeremy Hunt, shadow work and pensions secretary Mel Stride, and shadow energy secretary Claire Coutinho are among those who have signed the motion.

Meanwhile, the Government also faces the prospect of a backbench Labour rebellion over its plans to restrict the winter fuel payment to only the poorest pensioners.

There is also reportedly a Cabinet split over the policy with calls from some of Sir Keir's top team for Ms Reeves to rethink.

A Government spokesperson said: “We are absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement. That’s why through our commitment to protect the triple lock, over 12 million pensioners will see their State Pensions increase by almost a thousand pounds over the next five years.

“But given the dire state of the public finances we have inherited, it’s right that we target support to those who need it most while we take the difficult decisions needed to fix the foundations of our economy. Over a million pensioners will continue to receive the Winter Fuel Payment and eligible pensioners will also be able to benefit from the £150 Warm Home Discount scheme from October to help with their energy bills over winter.

“We are urging pensioners to come forward and check their eligibility for Pension Credit to ensure as many people in need as possible have access to this support.”