Nigel Farage reacts to Runcorn by-election victory
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Nigel Farage declared that Reform is now the party “of the workers” as Labour descended into civil war over benefit reforms. Reform will set out to replace Labour as the party of working people as Mr Farage announces tomorrow that he would restore winter fuel payments to all pensioners and scrap the two child benefit cap, if he becomes Prime Minister.
It follows Sir Keir Starmer’s announcement last week of a partial u-turn over winter fuel means-testing. But his policy is in chaos after officials warned it would be impossible to implement the Prime Minister’s plan this year, while Deputy Prime Minister Angela Rayner appeared to call for answers within weeks. Labour MPs believe Chancellor Rachel Reeves is facing the axe in a summer reshuffle, with Pat McFadden, a veteran of the Blairite era, tipped to replace her.
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Nigel Farage is planning a major benefits policy announcement (Image: Getty)
Mr Farage will set out his plan to restore payments of up to ￡300 to keep pensioners warm during winter, after the Chancellor stripped the benefit from more than nine million people. He is also expected to announce that Reform will abolish a cap which prevents parents from claiming child tax credit or universal credit for more than two children.
The Reform leader said: “Starmer is out of touch with working people, he doesn’t understand what they want and how they feel about the big issues facing Britain. Labour is no longer the party of workers. Reform UK is.”
He added: "Reform believes in family, community and country. Scrapping the two child benefit cap and restoring the winter fuel allowance is a core part of helping hard working British families.
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“Whilst Labour argue amongst themselves, we are clear to the British public that we are on the side of workers and we will do all we can to support them. We believe in helping British families to have children.”
Sir Keir announced last week that Labour would ensure more pensioners receive winter fuel payments, indicating that the means-testing threshold would be raised. But he has been warned by officials that Whitehall’s ageing computer systems make it impossible to introduce such a change before winter.
It means the Government could be forced to go further and end means-testing entirely, while attempting to claw back the money from the wealthiest pensioners through the tax system.
Labour backbenchers are angry about the Prime Minister’s failure to provide any details about the u-turn. Sir Keir said an announcement will be made at the next “fiscal event”, a reference to the Chancellor’s Budget statement in the Autumn, but Deputy Prime Minister Angela Rayner yesterday broke ranks to insist the Chancellor must provide answers at a Spending Review on June 11.
Ms Rayner told Sky News: “I think that we’ve got the upcoming spending review and I’m sure the Chancellor will set it out when we’ve got the opportunity. At the first opportunity.”
Asked by interviewer Trevor Phillips to confirm she was referring to June 11, Ms Rayner said: “I hope so, but I don’t know. But I hope so.”
A government source said: “As Angela said, the Chancellor is going to look at how we achieve what the Prime Minister set out and any future changes will be set out at a fiscal event as and when the situation allows. Of course she hopes we’re in a position to announce that as soon as possible, but as she made clear, it’s for the Chancellor to decide when it’s responsible to do so.”
The Deputy Prime Minister also said she was part of a review looking at whether Labour should scrap the two-child benefit cap - despite reports the Chancellor is worried about the ￡3.5 billion cost.
This would mark another huge u-turn for Labour after Sir Keir last year suspended seven Labour MPs for opposing the cap.
Labour MPs welcomed benefit u-turns but are in despair at the Government’s failure to send a clear message.
One told the Express: “It’s another disaster. He makes announcements and has nothing to follow them up with.
“This has been been happening since we first got into power. The Government makes announcements without any details and it leaves a hole which allows speculation to grow.”
And a Labour MP said “the knives are out” for Rachel Reeves.
“Come the Autumn Statement it’s easy to imagine Pat McFadden delivering it,” said the MP. Pensions Minister Torsten Bell is tipped for the role of the Chancellor’s deputy as Chief Secretary to the Treasury.
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Conservative leader Kemi Badenoch called for the restoration of the winter fuel allowance in full to ensure it goes to everyone in need, but said that a Tory government would develop a system to ensure payments stopped being sent to millionaires who did not need the money.
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Mrs Badenoch insisted the two-child cap should stay. She said: “Our welfare bill continues to grow. We’re spending over ￡100 billion on servicing debt interest every year with borrowing to pay welfare. The two child benefit cap is reasonable. It’s the right thing to do. And we want people to know that we manage the economy properly. That’s what a government should be doing. I don’t think it is right to scrap it.”
The spate of Government u-turns has encouraged Labour MPs to step up calls for a rethink of another controversial policy, cuts to Personal Independence Payments, which are paid to people with disabilities.
The Government has announced it is removing Personal Independence Payments for 800,000 people, including 370,00 current claimants and 430,000 people who will no longer be eligible in the future, each losing an average of ￡4,500.