Rachel Reeves is accused of 'warmed-up' austerity measures on heating oil payments in winter

Rachel Reeves is under pressure to prevent a “return to austerity” as Downing Street faces down Labour rebels over winter heating allowance cuts.

The government is determined not to back down from its policy of cutting pensions for ten million pensioners this winter ahead of a crucial vote next week.

Labour MPs called for a compromise, such as postponing the new rules for another year or relaxing the criteria that allow some pensioners to continue receiving their pension payment of £200 or £300 a year (depending on their age).

Writing for IYork Central MP Rachael Maskell said she was “sickened” at the prospect of vulnerable older people having their payments cut.

The Chancellor of the Exchequer announced in July that only those receiving a pension supplement would continue to be entitled to winter heating allowances, stressing that cuts were necessary to plug the £22 billion “black hole” in the public finances.

Maskell wrote: “The pension credit threshold needs to be lowered. It is a blunt instrument for those who have worked hard and saved pennies for their pension. And secondly, the thresholds need to be reviewed.”

She added: “We need a mitigation this weekend. It is a tiny fraction of government spending. Suspending these proposals – just for this year – would be morally right.”

Downing Street insiders said I They did not consider delaying or otherwise changing the new rules, although Ms Reeves and other ministers met with dissatisfied MPs to urge them not to rebel.

A government source said: “There are obviously people who are concerned. We are talking to them and explaining that we are in difficult times and that things could get even more difficult.”

Lee Barron, the newly elected MP for Corby & East Northamptonshire, is the latest backbencher to raise concerns. In a letter to the Chancellor of the Exchequer, he expressed “concern” at the move and asked for “further consideration to ensure a safety net is in place for those most at risk of falling through the cracks”.

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Some Labour insiders have compared Ms Reeves to George Osborne, who was Chancellor of the Exchequer during the coalition government's austerity regime. One MP said: “Some people think this may be part of the George Osborne narrative that she is tough just for the sake of being tough.”

Another party source said: “We don’t need warmed-over Osbornism.”

A union insider added: “People are very keen to ensure there is no return to austerity.”

The row over winter heating allowances could already be damaging Labour at the polls, says Conservative peer and election expert Robert Hayward. He pointed out that the party had backslidden in six local government by-elections this week, adding that the poor showing “is likely to cause some concern among Labour MPs ahead of the vote on winter heating allowances next Tuesday”.

A Government spokesman said: “We remain committed to supporting households in need this winter. This includes introducing the Warm Home Discount, extending the Household Support Fund and we continue to encourage pensioners to check their eligibility for the Pension Supplement to ensure as many people as possible receive the support they are entitled to.”