HOW LUDICROUS! LABOUR AXED WINTER FUEL HELP TO 'STOP RUN ON POUND'

LABOUR has been derided for a "desperate" attempt to defend axing winter fuel payments by insisting it would help to prevent a run on the pound.

- Sam Lister and Katie Harris

The claims there would be a financial disaster unless savings were made, including the £1.5 billion cost of the fuel allowance, were dismissed as "ridiculous fantasies".

Commons Leader Lucy Powell, above, said the Government had no alternative and added it was "really sorry".

The Manchester Central MP continued: "If we hadn't had done so we would have all but likely seen the markets losing confidence in this country, the cost of borrowing going up, a run on the pound possibly and the pound crashing."

Ms Powell was asked whether she could see any scenario where the controversial decision might be reversed and she replied: "I don't."

Within days of taking office in July, Chancellor Rachel Reeves announced that she was axing the universal winter fuel allowance £200 for pensioners under 80 and £300 for those over that age with immediate effect, in order to save some £1.5billion.

Shadow Treasury Minister Laura Trott countered that the claims which had been made by Ms Powell were not believable.

The Sevenoaks MP went on: "This simply shows how desperate the new Labour Government is to run from responsibility for the tax rises they always planned but hid from the public during the election.

"After handing billions in inflation-busting pay rises to their union paymasters, no one believes Labour's Chicken Little' strategy."

Ms Trott added: "They should stop trying to deceive the public with ridiculous fantasies and instead have the courage to let Parliament debate cuts to winter fuel payments for the sake of those pensioners who will lose out thanks to the decisions of this Government." Tory party leadership hopeful Kemi Badenoch will today accuse Labour of "pretending" that it had had no plans to cut pensioner benefits.