Unite General Secretary Sharon Graham has called on Labour to scrap its controversial plan to cut the winter fuel allowance for 10 million pensioners, advocating instead for a 1% tax on the wealthiest Britons.
In an exclusive interview with The Mirror, Graham criticised the proposal, labelling it as “pickpocketing” pensioners, and urged Labour to focus on taxing the wealth of millionaires to fill the £22 billion gap in public finances.
Graham suggested that a 1% tax on the top 1% of Britain’s wealthiest individuals—those with assets over £4 million—could raise around £25 billion annually, far exceeding the projected savings from cutting the winter fuel allowance. “Why are we making the choice to pit pensioners against workers?” she asked, emphasising the need for a fairer approach to public finances.
The call comes ahead of a Commons vote on the proposed cuts, which has sparked unrest among Labour backbenchers and charities. While the party’s large majority makes it unlikely that the vote will be overturned, a significant rebellion could pose a major challenge for Prime Minister Keir Starmer.
Graham, who has previously been vocal in her criticism of Starmer, urged Labour to “accept it’s an error” and change course, warning against further austerity measures in the upcoming Budget. She also pushed for increased borrowing to invest in British industry, warning that any cuts could lead to public backlash.
“People are not going to accept austerity mark two,” Graham said, adding that Labour must provide hope to avoid disenchantment and a potential rise in far-right support.
Graham’s comments come ahead of the Trades Union Congress (TUC) annual gathering, where Unite will campaign for a wealth tax and push back against public service cuts.
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