Ministers ‘pushed ahead too fast' on welfare reform, says Phillipson
Ms Phillipson told the BBC's Sunday With Laura Kuenssberg programme that she was 'not going to pretend that it hasn't been a tough or a challenging week' after ministers were forced to scrap their plans for the personal independence payment (Pip) in the face of a backbench revolt.
'I'd be the first to acknowledge that, both in the pace and the nature of what we set out, we didn't get it right, but we do need to reform the system we've got,' she said.
Asked about the Prime Minister's authority, the Education Secretary said: 'What the Prime Minister has said, and what I also believe, is that what we set out, we pushed ahead too fast, we didn't listen enough to people, including, I would say, including to lots of people who had concerns about the nature of that change.'
Ministers have warned MPs that there will be financial consequences to the decision not to reform Pip as planned.
Labour backbenchers have also been pushing for the Government to scrap the two-child benefit cap.
When asked if there was now less chance of the cap being scrapped given the costs that come with Tuesday's decision, Ms Phillipson told the BBC that ministers were 'looking at every lever and we'll continue to look at every lever to lift children out of poverty'.
Pushed on whether the likelihood of the cap going was now slimmer, Ms Phillipson said: 'The decisions that have been taken in the last week do make decisions, future decisions harder.
'But all of that said, we will look at this collectively in terms of all of the ways that we can lift children out of poverty.'
Meanwhile, shadow chancellor Sir Mel Stride had written to the budget watchdog asking whether a new updated fiscal forecast was in the works after Labour's U-turns on welfare and winter fuel.
I've written to the @OBR_UK seeking urgent clarity on the multi-billion pound hole created by Labour's unfunded spending commitments. When governments lose control of the finances and transparency is sidelined, confidence in our economy is put at risk.
Parliament and the public… pic.twitter.com/2jEzjC4vGa
— Mel Stride (@MelJStride) July 6, 2025
In his letter to the Office for Budget Responsibility, Sir Mel said: 'The public, Parliament and markets deserve clarity and transparency about the impact of recent events on the nation's finances and the Government's fiscal strategy.'
The Conservatives will try to change the Government's welfare Bill to tighten up access to Pip and universal credit by laying a series of amendments this week.
Tory leader Kemi Badenoch will also pledge that the Tories are 'now the only party committed to serious welfare reform' in a speech expected on Thursday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Record
28 minutes ago
- Daily Record
Tories set to call for PIP face-to-face assessments on all claims as part of new DWP reforms
The Conservatives also want anxiety, mild depression and ADHD exempt from being classed as a 'severe condition' for Universal Credit. Reasons your Universal Credit may be cut by DWP The Conservatives will try to change the Labour Government's welfare Bill this week to tighten up access to Personal Independence Payments (PIP) and Universal Credit. Kemi Badenoch will pledge that the Tories are 'now the only party committed to serious welfare reform' after Prime Minister Sir Keir Starmer shelved plans to restrict eligibility for PIP in the face of a backbench revolt last week. The Tories will look to lay amendments to the legislation - renamed the Universal Credit Bill - and party leader Mrs Badenoch is due to deliver a speech on welfare on Thursday. Among the amendments the Conservatives will propose is a requirement for eligibility for PIP to be determined by a face-to-face assessment only, rather than remotely by telephone or video call. As part of the UK Government's reforms, the Department for Work and Pensions (DWP) has proposed a new 'severe conditions criteria' for Universal Credit. Claimants in this category will be entitled to a higher rate of the benefit, and will not be routinely reassessed to receive payments. Another of the Conservatives' amendments would prevent somebody from being classed as having a severe condition for the purpose of universal credit only by having anxiety, mild depression, or ADHD. The third amendment would block the increase in Universal Credit and restrict PIP for some people who are not British citizens. In her welfare speech, Mrs Badenoch is expected to say that the Conservatives are 'the only party that is prepared to take the tough decisions to get spending under control'. 'I have no doubt that, emboldened by their success in forcing Starmer to U-turn last week, Labour's backbench MPs will now be eyeing up more concessions,' she will say. The original welfare proposals had been part of a package that ministers expected would save up to £5 billion a year, and economists are now warning that tax rises are likely to plug the gap left by the concessions to rebels. On Friday, Chancellor Rachel Reeves admitted that the fallout over the UK Government's welfare Bill had been 'damaging' and did not rule out tax rises in the Autumn Budget. The DWP confirmed no changes will be made to PIP until a review of the current assessment process has been completed. Minister for Social Security and Disability Sir Stephen Timms will co-produce the review with disabled groups and charities, which is expected to be completed next year. Sir Stephen announced the climbdown in the middle of the debate on the legislation in Parliament on July 1. He acknowledged 'concerns that the changes to PIP are coming ahead of the conclusions of the review of the assessment that I will be leading'. Sir Stephen said the UK Government would now 'only make changes to PIP eligibility activities and descriptors following that review', which is due to conclude in the Autumn of 2026. The Scottish government has said people on Adult Disability Payment will not be affected by changes to PIP.
The Independent
an hour ago
- The Independent
‘Enemies of Labour' to benefit from Corbyn-led party, says peer
Lord Kinnock has criticised plans by Jeremy Corbyn and Zarah Sultana to form a new left-wing party, saying it would "only assist the enemies of Labour". Kinnock mockingly suggested the new party be called the "Farage assistance group", arguing that division on the left would benefit right-wing parties such as the Conservatives and Reform UK. Ms Sultana announced her resignation from Labour and her intention to co-lead a new party with Mr Corbyn last week, saying they aim to tackle poverty and inequality, and oppose war. Mr Corbyn appeared to be surprised by Sultana's announcement, issuing a non-committal statement, and his team reportedly urged her to retract it. Polling data indicates a hypothetical Corbyn-led left-leaning party could attract 10 per cent of voters, primarily drawing support from Labour, the Greens, Lib Dems, and the SNP.
Wales Online
an hour ago
- Wales Online
Workers in line for £29,000 boost in 'landmark Pensions Bill' DWP says
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info Workers are in line for a £29,000 boost thanks to a landmark Pensions Bill, according the Department for Work and Pensions. UK Goverment chiefs say the Pension Schemes Bill could boost returns to pension saving by thousands of pounds. Changes will also make it easier for savers to access and manage their pensions, with the Bill set to transform the pensions landscape for years to come and put more money in people's pockets as part of the Plan for Change, they say. A DWP statement said: "Working people on an average salary who save into a pension pot over their career, could benefit by up to £29,000 by the time they retire thanks to major Government reforms that will consolidate small pension pots, ensure schemes are value for money, and create larger pension schemes. "The figure was revealed as the Pension Schemes Bill returns to Parliament for its second reading today [7 July 2025]. Reforms in the Bill, which have received wide-spread support from the pensions industry and consumer groups, will support 20 million pension savers to get more from their pension pots and be better prepared for retirement. "The Bill will bring together small pension pots worth £1,000 or less into one pension scheme that is certified as delivering good value to savers, making pension saving less hassle and more rewarding. At present many people struggle to keep track of multiple small pensions as they move jobs and can pay high fees as a result. "In future pension schemes will also need to prove they are value for money, helping savers understand whether their scheme is giving them good returns and protecting them from getting stuck in underperforming schemes for years on end. "These measures will lay the foundation for the upcoming Pensions Review to examine how we get to a fair and sustainable pensions system, supporting growth and delivering on the government's Plan for Change by putting more money into people's pockets. Minister for Pensions, Torsten Bell said: 'We're ramping up the pace of pension reform, to ensure that people's pension savings works as hard for them as they worked to save. 'The measures in our Pension Schemes Bill will drive costs down and returns up on workers' retirement savings – putting more money in people's pockets to the tune of up to £29,000 for an average earner and delivering on our Plan for Change.' Other measures include: New rules creating multi-employer DC scheme 'megafunds' of at least £25 billion, so that bigger and better pension schemes can drive down costs and invest in a wider range of assets. Simplifying retirement choices, with all pension schemes offering default routes to an income in retirement. Increased flexibility for Defined Benefit (DB) pension schemes to safely release surplus worth collectively £160 billion, to support employers' investment plans and to benefit scheme members. The DPW statement added: "The reforms will also unlock long-term investment in the UK economy by removing barriers to growth, strengthening the security and governance of pension schemes and ultimately delivering better returns for people saving for their retirement. "The pace of pension reform has ramped up with measures in the Bill set to revolutionise the pensions landscape in the coming years. While the benefits of the Bill are clear, significant challenges still remains with these benefits varied for different workers and different groups. This is why the upcoming Pensions Review will examine challenges such as pension adequacy to ensure underserved groups do not miss out on the benefits arising from these measures. "Reforms announced as part of the Bill will also future proof the Local Government Pension Scheme (LGPS) by leading to the consolidation of all £400bn of assets into a small number of expert asset pools which can invest in local areas infrastructure, housing and clean energy." Minister for Local Government and English Devolution, Jim McMahon OBE said: 'This Bill will ensure the Local Government Pension Scheme is fit for the future and harness its full potential, with assets due to reach £1 trillion by 2040, and will strengthen investment in local communities to accelerate growth as part of our Plan for Change.' Zoe Alexander, Director of Policy and Advocacy for PLSA (Pensions and Lifetime Savings Association) said: 'The introduction of the Pension Schemes Bill is a significant milestone, bringing forward necessary legislation to enact important reforms that have the full backing of the pensions industry. This includes small pots consolidation, the Value for Money regime, decumulation options and changes to give DB funds more options for securing member benefits over the long-term. 'Once fully implemented, these measures should reduce the cost of administering pensions, remove complexity for savers and help ensure schemes are maximising the value they provide members.' Sign up for the North Wales Live newsletter sent twice daily to your inbox Find out what's happening near you
