The shadow chancellor announces Labour would cut winter fuel payments for the richest pensioners, in a move intended to show the opposition’s willingness to display “iron discipline” once in power.
Support for better-off OAPs “can no longer be a priority” at a time of harsh public spending cuts, Mr Balls told an audience at Thomson Reuters headquarters in London.
“When our NHS and social care system is under such pressure, can it really remain a priority to pay the winter fuel allowance – a vital support for middle and low-income pensions – to the richest 5 per cent of pensioners, those with incomes high enough to pay the higher or top rates?” he said.
A Labour source said no other universal benefits, such as bus passes, were under review.
The shadow chancellor insisted the move was “very significant”, despite criticism that it would only save £100m a year.
Mr Balls also urged Chancellor George Osborne to heed warnings about the UK’s economic prospects and increase borrowing to boost growth.
And he signalled that Labour would take the coalition’s 2015-16 spending review as a “starting point” if it won the general election – although capital budgets could be higher.
Mr Balls said it would be irresponsible to set out detailed plans so far in advance.
“We must work together to find efficiency savings and switch resources to Labour’s priorities,” he said.
“But you cannot prepare now on any basis other than that you will inherit very tough spending plans from this year’s spending review. They will be our starting point.”
Treasury Minister Sajid Javid said: “Ed Balls’s promise of discipline on spending isn’t remotely credible. Ed Balls is incapable of admitting that Labour spent and borrowed too much in government, he has opposed every single tough decision we’ve taken to cut the deficit and he’s still saying Labour would borrow billions more.”
Mr Javid added: “The same old Labour plan for more borrowing and more debt would mean soaring interest rates with hardworking people paying the price.”