The insider who is based at the Scottish Parliament also said MSPs are “not looking forward” to the run up to the Holyrood elections due to recent decisions made by the UK Government.
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The news comes after the UK government announced compensation for the Women Against State Pension Inequality (Waspi) campaign on Tuesday would be an unfair use of taxpayers’ money which may cost the government in excess of £10 billion to roll out.
This decision means that there will be no compensation for millions of women born in the 50s across the UK, including thousands in Scotland.
The move was immediately criticised by campaigners and political parties, with Prime Minister Sir Keir Starmer – who has supported compensation for the women impacted – accused of “betraying the cause”.
The announcement has also seen Scottish Labour leader Anas Sarwar facing backlash after he tweeted in 2017: “Under my leadership, Waspi women will finally receive the justice they deserve.”
Yesterday, Mr Sarwar distanced himself from the UK Government decision, saying that a different way forward could have been found such as looking at targeted support for lower income pensioners.
A Scottish Labour insider, however, said the decision from the UK Labour party has left countless Labour members and parliamentarians in Scotland feeling “angry and disappointed”.
The insider told The Herald: “So many party members are raising concerns.
“This decision comes on top of what happened with the UK government’s decision on the winter fuel payment and two child benefit cap.
“At the start, we gave the UK leadership the benefit of the doubt. They were just through the door. Now, it feels like bad politics and bad judgment. It’s got to work both ways with Sarwar and Starmer.”
Since coming into office, the Labour party has maintained the two child benefit cap introduced by the Conservatives and cut back winter fuel payments south of the border.
During Prime Ministers’ Questions yesterday, Conservative leader Kemi Badenoch challenged Keir Starmer on Winter Fuel Payment cuts, saying pensioners “will suffer and may even die as a result of this cruel policy”. However, Mr Starmer insisted the most vulnerable pensioners will still get the payments.
As a result of such decisions made by the UK Government, the Scottish Labour insider told The Herald that Labour MSPs are not looking forward to the year ahead as “confidence has really dipped”.
The source said: “There’s a feeling that there is not a coherent political plan or narrative. The party has supported the Waspi campaign then it backtracked.
“There’s just a sense of uncertainty, making it difficult for Scottish labour leadership.
“Everyone knows there has been no honeymoon period [since UK Labour came into power] and lots of us are worried. It’s been a challenging couple of months.
“There’s a feeling in the party that the way decisions are being made it’s just not been managed properly.”
Asked about concern around Sarwar’s leadership, the insider said: “Sarwar has strong support in parliament but Scottish Labour needs to find its own voice or risk being brought down by bad decisions from Keir Starmer.”
“There is still a lot of support in Scottish Labour for Anas and he personally carried himself well during the election and boosted brand of Scottish labour but there is a concern that Scottish Labour can’t succeed without standing up for Scotland’s interest and we are still haunted by the branch office label.”
The former Scottish Labour leader Richard Leonard also exclusively told The Herald yesterday the promise made to Waspi women over compensation “must be honoured” after the UK Government ruled out the scheme.
In a statement sent to the paper, Mr Leonard said the campaign to recompensate Women Against State Pension Inequality (Waspi) “is not over”.
Yesterday afternoon, Mr Sarwar said he did not think it was the right move from his UK counterparts.
Mr Sarwar told ITV Representing Border: “I don’t think the decision the government has come to is the right one on compensation. I think they’ve come to the right place on injustice, I think they’ve come to the right place on apology but I don’t think it’s the right decision on compensation.”
Despite Mr Sarwar distancing himself, there is still concern it could negatively impact his party’s chances in the Holyrood 2026 elections.
The Labour insider said: “Recent polling shows cause for concern. There is disquiet and worry.”
A survey by Norstat conducted this month showed a sharp decline in support for Scottish Labour.
The poll showed 21% of Scots now say they would vote Labour on the constituency ballot for a Scottish parliament election, down nine points on Norstat’s poll in August.