UNITE general secretary Sharon Graham has accused Labour of “pickpocketing pensioners” and pitting them against workers through its plans to cut eligibility for winter fuel payments.

She has told Labour leader Sir Keir Starmer to “accept it’s an error” and  instead impose a wealth tax on the super-rich in the forthcoming Budget.

Ahead of the TUC Congress opening in Brighton today, she told the Sunday Mirror: “This whole piece around ‘there is no money:’ We've got a situation with pensioners being pickpocketed.

“At the same time, you have the 50 richest families in Britain worth £500 billion. That's the same amount of money that half of Britain is worth.”

Ms Graham said it was a mistake to axe the winter fuel allowance for all but the poorest pensioners.

“They should accept it’s an error. That's what leadership is about, sometimes errors are made. Accept it’s an error, change course,” she argued. “Let’s really have a look about how we can have a much fairer society ... Why are we making the choice to pit pensioners against workers?”

“Just because they [Labour] say ‘it’s not austerity:’ if it walks like a duck and quacks like a duck, then it’s a duck. If that’s what we’re seeing, then people are going to call it out for what it is.

“[Cutting] winter fuel [payments] was an error. I think they [Labour] are going to do some very good things, but they need to call [that decision] out as an error."

In the Observer, she said: “It is a choice to stick with the grim old austerity model, to pit pensioners against workers by axing the winter fuel payment when public wages rise.

“The new government can seize its moment and make entirely different choices.”

She urged Chancellor Rachel Reeves to steer clear of “austerity Mark II” and  borrow to boost public investment to at least 1 per cent of gross domestic product.

“Without investment, you’re not likely to see growth,” she said. “This means jettisoning the straitjacket fiscal rules on borrowing.”

TUC delegates are to debate a Unite motion calling for a 1 per cent tax on assets above £4 million.

This could raise about £25bn a year, exceeding the £22bn black hole in the nation’s finances left behind by the Tories, the union says.

Sir Keir faces criticism from his own backbenchers in the run-up to a Commons vote on the measure tomorrow.