The Labour leadership faces a conference battle over cuts to winter fuel payments as trade unions push for the policy to be reversed.

Delegates to the party’s annual conference in Liverpool are expected to debate Labour’s economic plans on Monday, with the decision to remove winter fuel payments from 10 million pensioners set to feature.

The exact wording of the motion delegates will vote on will be determined on Sunday night, but trade unions Unite and the Communication Workers Union have put forward proposals calling for the policy to be scrapped.

Unite has already unveiled billboards around Liverpool with the slogan “Defend the winter fuel payment” and plans to stage a demonstration outside the conference centre ahead of the debate on Monday.

The union’s general secretary Sharon Graham described the policy as “cruel” and a “mis-step”, while Matt Wrack, the head of the Fire Brigades Union, said it was a “politically inept” decision that would “haunt” the Government for years.

Restricting winter fuel payments to only the poorest pensioners has put the Government at odds with the unions as Chancellor Rachel Reeves attempts to fill what she claims is a £22 billion “black hole” in this year’s budget left by the Conservatives.

But Tory shadow ministers insist there was no “black hole” and the Government is merely preparing the ground for tax rises when Ms Reeves announces her first Budget on October 30.

Both the Unite and CWU motions include call for the winter fuel payments to be restored to all pensioners, but address wider economic policy as well.

Unite’s motion calls for a wealth tax on the richest 1% of people and other changes to the tax regime that the Government has so far been keen to avoid.

Unite general secretary Sharon Graham stands by a picket line
Unite general secretary Sharon Graham said removing the winter fuel payment from 10 million pensioners was ‘cruel’ and a ‘mis-step’ (Jacob King/PA)

The motion said: “Britain cannot wait for growth, nor turn back to failed austerity.

“We need a vision where pensioners are not the first to face a new wave of cuts and those that profited from decades of deregulation finally help to rebuild Britain.”

Both unions also called for reform of the Government’s fiscal rules to allow more borrowing to invest in public services and infrastructure, something the Chancellor has also faced pressure to do in order to kickstart economic growth.

But Ms Reeves has been adamant that her fiscal rules are non-negotiable, saying she must demonstrate tight control over the public finances.

Monday will also see the Chancellor deliver her first conference speech since entering Number 11 after the party’s first day in Liverpool saw speeches from Deputy Prime Minister Angela Rayner and Foreign Secretary David Lammy.