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Why the welfare reform row is about so much more than welfare

Why the welfare reform row is about so much more than welfare

ITV Newsa day ago
The underlying discontent among rebellious,and even loyal Labour MPs, stems from what many would say is a pathetically late discovery: that what's driving so much government policy is Rachel Reeves 's fiscal rules and the absolute power of the Office for Budget Responsibility in determining whether she is breaching those rules or not.
Any illusion that this isn't the single most important driver of government decision-making was shattered on Monday by the revealed contradiction between its establishment of a supposedly fundamental review, led by disabilities minister Stephen Timms, to shape new criteria for awarding Personal Independence Payments, while nonetheless sticking with the contradictory stipulation that from November next year no one will be eligible for PIP, if they don't score four points on one of PIP's existing criteria.
It is absurd and illogical to characterise Timms's review as the face of humane reform, while simultaneously saying that this new four-point rule based on existing criteria will willy-nilly come into effect next year.
So what's really going on?
The work and pensions secretary's unspoken reason for sticking to the four-point reform is that without it, and under the OBR -assessed fiscal rules, Reeves would have to fill a £5bn hole in her finances in the autumn budget, and not the £2.5bn hole created by Kendall's partial welfare-reform climb down.
That is a big difference when it comes to any taxes Reeves may have to raise or any spending she may have to cut.
So a growing number of Labour MPs see this subservience to the OBR and the fiscal rules as just the stupidest motivation for making Monday's decisions, that affect the lives of the most fragile of UK citizens - decisions that will, on the government's own calculations, shift 150,000 vulnerable people into poverty.
These MPs were bitten once by the OBR dog when Reeves chose to means-test the winter fuel allowance as proof of her fealty to the OBR's jurisdiction over her own fiscal rules. With the disability reforms, many of them now feel twice shy.
They don't ask why a Labour government respects the OBR, especially after the Truss/Kwarteng fiscal debacle caused by their disrespect for the OBR.
But they do question why the Chancellor and Treasury endow the OBR with an almost mystical ability to determine which policies are sensible, and why Reeves has seemingly abdicated responsibility for trying to sell the government's initiatives to the country's creditors independently of the OBR and fiscal rules straitjacket.
So whatever the outcome of Tuesday's vote on the welfare reforms, Reeves and Starmer are now under enormous pressure - probably irresistible pressure - to lose their OBR religion.
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The British political class have shown themselves at their worst
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Keir Starmer hit by new major rebellion as 49 Labour MPs refuse to back his government's welfare cuts - was YOURS among them?
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Daily Mail​

time39 minutes ago

  • Daily Mail​

Keir Starmer hit by new major rebellion as 49 Labour MPs refuse to back his government's welfare cuts - was YOURS among them?

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It's nonetheless a significant number of us made a stand, which I mean needed to be done.' Those voting against it included the former shadow minister for the disabled, Marsha de Cordova. Vicky Foxcroft, who quit as a whip last week because of concerns about the bill, voted for it in its weakened state. Despite being titled the Universal Credit and Personal Independence Payment Bill, the legislation now contains no measures relating to Pip. The respected IFS think-tank said that accounted for £2.6billion of the savings the government had hoped for by 2029-30. Curbs to the health element of Universal Credit should have eased spending by £1.7billion, but that was due to be offset by £1.8billion on raising the basic rate. Researcher Tom Waters said that left an additional cost of £100million by 2029-30. Agonisingly for Chancellor Rachel Reeves, the delay almost certainly means the Office for Budget Responsibility cannot 'score' the savings in time for her Budget. As a result the black hole in the government's books is likely to be even bigger than feared. Concerns were already running high that Ms Reeves will have to hike taxes to stabilised the public finances. In 12 hours of carnage at Westminster, the PM's carefully-assembled truce with rebels dramatically disintegrated. Facing the threat of a massive revolt, Sir Keir opted make yet another major concession just 90 minutes before the vote. Ministers pledged that changes to disability handouts will not be finalised until after a review - meaning that the package as it stands will actually make the current system more expensive than before. Sir Keir - who is days away from marking the first anniversary of his election landslide - had already agreed that the benefits curbs would only apply to new claimants. 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