Several cabinet sources told the Guardian they were concerned that holding the line on the winter fuel allowance would be unsustainable. One cabinet source said they were worried about the fallout from the policy as the days got colder and energy prices rose. It hasn't even been thought through properly. We're going to end up with more old people in hospital or care as a result, with all the costs involved in that, they added.
A Treasury source said: It is a tough decision but we have a 22bn black hole that we have to tackle. Everyone recognises that we have to get a grip on the public finances.
One cabinet minister said: I don't think people have fully grasped how difficult the in-year deficit is for the government ... This isn't an easy decision for the chancellor to make but people have got to get behind her so she makes the tough decisions now.
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