What we learned from the Labour conference on tax, housing, benefits and debt

Labour’s first conference in power in 15 years took place in Liverpool this week. Amid concerns about the £22bn “black hole” left by the Conservatives, the mood at the conference was as sombre as the weather. But the prime minister assured the public there was “light at the end of the tunnel,” with short-term pain leading to “long-term gain”.

Here’s a look at some of the key moments from the conference and the government’s promises on tax, housing, benefits and debt.

Renters’ rights

Opening the conference on Sunday, the deputy prime minister and housing minister Angela Rayner set out a series of measures to protect renters. She committed to “building homes fit for the future,” and promised to bring forward a Remediation Acceleration Plan this autumn to speed up the removal of unsafe cladding on high-rise buildings.

Rayner also announced consultations on a new “decent homes standard” for the social and private rented sectors, as well as a new law requiring landlords to respond to complaints about disrepair within legally binding timescales.

The government estimates that these measures will help tenants in 746,000 homes with serious safety hazards, ensuring quicker repairs and reducing health and safety risks.

‘No return to austerity’

Following the 2008 financial crisis, the Conservatives imposed widespread cuts to public services, commonly referred to as austerity. In her conference speech, the chancellor Rachel Reeves struck an optimistic tone, insisting there would be “no return to austerity”. 

“Conservative austerity was a destructive choice for our public services – and for investment and growth too. We must deal with the Tory legacy and that means tough decisions. But we won’t let that dim our ambition for Britain,” said Reeves.

The chancellor envisioned a nation richer from investment in services and manufacturing, where new generations could thrive and work for a decent wage. But she was light on detail on how and when such growth and new jobs might materialise.

Cuts to winter fuel allowance to go ahead

One of the most contentious topics at the conference was the government’s controversial decision to strip up to £300 a year in winter fuel payments to around nine million pensioners.

Reeves defended the decision, saying that state pension rises of around £1,700 throughout the current parliament will protect incomes. But trade unions and campaigners are demanding a U-turn on the policy. A debate and vote on reversing the plan was delayed during the conference, which frustrated some delegates.

When the motion finally went ahead today (25 September), Labour members voted in favour of reversing the cut to the winter fuel payments. While the vote isn’t binding, it puts further pressure on the Labour leadership over the controversial policy.

The government is encouraging an estimated 880,000 pensioners who may be missing out on pension credit, which provides a cash boost worth up to £3,900 and automatic eligibility for the winter fuel allowance, to apply.

Income tax, VAT and national insurance

Labour’s pre-election manifesto promised not to raise income tax, VAT or national insurance. Rachel Reeves doubled down on that promise in her speech. However, there is speculation that the government may look to other areas to generate additional revenue, such as increases in capital gains tax, inheritance tax and stamp duty on property sales.

The union Unite has called for the government to introduce a 1% tax on people who have £4m or more. But in a recent interview with the Sunday Times, Reeves ruled out introducing a new, personal wealth tax.

Will not scrap single-person council tax discount

The chancellor also confirmed that the government will not end the single-person council tax benefit, which provides a 25% discount on council tax for people who live alone. The benefit is claimed by millions of households, including four million pensioners.

Free breakfast clubs for primary schools in England

Another key announcement at the conference was the rolling out of free breakfast clubs in all primary schools in England next year. The policy is expected to save parents around £400 a year. Reeves described the £7m pilot scheme as an “investment” in reducing child poverty.  

A crackdown on benefit fraud

In his leader’s speech, Keir Starmer announced a crackdown on benefit fraud. The prime minister argued that such a crackdown was essential if the government was to “maintain support for the welfare state”.

The fraud, error and benefit bill will be brought forward, giving the Department for Work and Pensions (DWP) greater power to prevent fraud and recover lost money. The bill will allow DWP to investigate suspected fraud more rigorously and recover debts from those who can repay it but have avoided doing so. It will also require banks to share data that may show potential benefit overpayments.

Not all benefit overpayments are the result of deliberate fraud. DWP has faced scrutiny for administrative errors, such as its mishandling of carer’s allowance, which led to overpayments and avoidable debt for carers. The new bill aims to create a more robust system which prevents people from falling into debt through administrative errors.

As the autumn budget approaches, we’ll continue to update you on any government announcements and measures that could affect your finances and wellbeing.