Welfare reforms risk leaving stain on Labour, MP warns
Rachael Maskell said pressing ahead with the welfare reform Bill risked leaving 'such a stain' on her party, as she urged ministers to scrap a proposed change to the out-of-work element of universal credit.
Ministers have proposed increasing the universal credit standard allowance at least in line with inflation until 2029/30.
But the Government has proposed freezing the 'limited capability for work' (LCW) part of the benefit until 2030, and new claimants who sign up for the 'limited capability for work and work-related activity' payment will receive a lower rate than existing claimants after April 2026, unless they meet a set of severe conditions criteria or are terminally ill.
Commons Work and Pensions Committee chairwoman Debbie Abrahams urged the Government to push back its reforms until November 2026.
'This is to allow for the NHS capacity to ramp up and to ensure funding follows health need, so that people with newly required conditions or impairments can receive early treatment and a better aligned labour market that will enable them to return to work quickly,' the Labour MP for Oldham East and Saddleworth told the Commons.
'Without this, there is the risk that 45,000 more newly disabled people and their children will be pushed into poverty.'
Ms Abrahams described her pitch as a 'reasonable compromise', costing £141 million in lost savings.
Ms Maskell tried to block the Bill's progression at second reading last week using a reasoned amendment, which failed by 149 votes to 328, majority 179.
Around 90 minutes before that vote, social security minister Sir Stephen Timms promised in an intervention to halt a proposed reform to the separate personal independence payment (Pip) benefit, with any changes now only coming in after a review.
'The cart before the horse, the vote before the review, and this omnishambles of a Bill, these people with fluctuating conditions not knowing where they stand, and for that, nor where any of us stand by the end of today,' Ms Maskell said on Wednesday.
The York Central MP had earlier said: 'No matter what spin, to pass the Bill tonight, this will leave such a stain on our great party, founded on values of equality and justice.'
She urged MPs to gut the Bill of plans to roll out a lower rate of out-of-work benefit for new claimants from 2026 and freeze the LCW component.
'Their contention is my contention – sick and disabled people have not been consulted,' Ms Maskell added.
She has proposed that current out-of-work benefits claimants should not be put on the proposed lower rate of out-of-work benefit, if they slip out of and then back into the eligibility criteria either side of the changes.
'If someone has a fluctuating physical or mental health condition like multiple sclerosis, schizophrenia, cystic fibrosis, or other recurring muscular-skeletal condition, if following a period of remission and work then relapse and returning to universal credit, unless unequivocally stated, they will return onto the pittance of £50-a-week for their health element,' she said.
Sir Stephen intervened and asked her to acknowledge 'how the Bill protects people in exactly the situation that she describes', where claimants are prone to seasonal conditions such as chest infections over the winter.
If a pre-2026 claimant slips out of being eligible for universal credit but meets the eligibility criteria again within six months, the Bill would demand that they be considered 'continuously entitled to an award'.
It would mean that they could go 'straight back onto the position they are in at the start', the minister added.
Labour MP for Penistone and Stocksbridge Marie Tidball urged the Government to properly work with disabled people in the Pip review, known as the Timms review.
Ms Tidball, a disabled MP who tabled a cross-party amendment on the Timms review, said: 'While the minister will head up this review, the voices of disabled people must be front and centre.
'The measures in this new clause emphasise the need for disabled people and disabled people's organisations to make up the majority of the taskforce, and to have a significant role in the leadership of the review, and I believe carers could be a part of that.'
She said any recommendations must be debated in the Commons before implementation. She said: 'Output of this review must also be meaningful and not performative.'
Independent MP Zarah Sultana, who quit Labour last week, spoke in the Commons for the first time since her decision, where she hit out at the Government.
The MP for Coventry South MP said: 'The truth is this – Westminster is broken but the real crisis is deeper. This is a Government, not out of touch, but also morally bankrupt. It works for billionaires and big business while turning its back on disabled people.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
14 minutes ago
- The Guardian
Zero-hours contracts: peers accused of ‘trying to block stronger UK workers' rights'
Conservative and Liberal Democrat peers have been accused of trying to block stronger rights for millions of workers amid a growing campaign by business leaders to water down Labour's zero-hours contract plans. In a blow for the government, the Lords last week voted to curtail the manifesto promise to give workers a right to a guaranteed hours contract and day-one protections against unfair dismissal. Setting up a showdown with the upper chamber, the Lords passed a series of amendments to the employment rights bill that will must be addressed by ministers when MPs return from their summer break. In an angry intervention on Monday, the general secretary of the Trades Union Congress, Paul Nowak, said the Lords was 'doing the bidding of bad bosses' and ought to 'get out of the way' of the plans. 'The sight of hereditary peers voting to block stronger workers' rights belongs in another century. It's plain wrong,' he said. Under the Lords' amendments, a requirement for employers to offer zero-hours workers a contract covering a guaranteed number of hours would be shifted to place the onus on staff to ask for such an arrangement. Protections against unfair dismissal from the first day of employment – which the government plans to reduce from the current level of two years – would be extended to six months, and changes to free up trade unions would be curtailed. The bill will return to the Commons in September for MPs to consider the amendments. The two houses then continue to vote on the changes in a process known as 'ping-pong' until a way forward is agreed. The amendments were put forward by the Lib Dem Lord Goddard, a former leader of Stockport council, and two Tory peers: Lord Hunt, who is a shadow business minister, and Lord Sharpe, a former investment banker. Hunt did not respond to a request for comment. Sharpe said: 'Keir Starmer's unemployment bill is a disaster for employees as much as it is a threat to business. Labour politicians who have never worked in business are destroying the economy. Only the Conservatives are listening to business and making the case for growth.' Goddard said he feared Labour's 'rushed bill' would be bad for workers in small businesses and on family-owned farms. 'They were badly let down by the Conservatives, and Labour seems to have a blind spot when it comes to farms and small businesses, too. 'We support the bill as a whole and have worked constructively to try to improve it. It's a shame to see the government getting upset that we didn't simply give them a blank cheque.' Employers groups welcomed the changes, saying the Lords was responding to business concerns. Helen Dickinson, the chief executive of the British Retail Consortium, said: 'Putting forward positive, practical and pragmatic amendments to the employment rights bill [will] help to protect the availability of valuable, local, part-time and entry level jobs up and down the country.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Industry chiefs have stepped up lobbying against the workers' rights changes, warning that companies were already slashing jobs and putting up prices in response to tax rises in chancellor Rachel Reeves's autumn budget. Dickinson said there was 'further to go' to curb the employment rights bill. 'Even with these amendments accepted, retailers remain worried about the consequences for jobs from other areas of the bill.' Union leaders have, though, urged ministers to stand firm. A recent mega poll of 21,000 people commissioned by the TUC found a majority of UK voters – including Conservative, Lib Dem and Reform UK supporters – backed a ban on zero-hours contracts. Nowak said the government plan included 'commonsense protections' that a majority of people wanted to see become law. 'These peers are not just out of touch, they are actively defying their own voters – and the public at large. The government must stand firm in the face of cynical attacks and deliver the employment rights bill in full.'
The Independent
39 minutes ago
- The Independent
Imported dogs could carry disease or behaviour risk, RSPCA warns
An animal charity has called for stricter regulations on animal rescues importing dogs into the UK, citing concerns about disease risks and behavioural issues Government statistics reveal that in 2023, 320,000 pets were brought into the UK under travel pet schemes and 44,000 entered as commercial imports. RSPCA spokesman David Bowles likened the process to ' Deliveroo for dogs' and called on the Government to tighten regulations on animal rescues. He told the BBC: 'The RSPCA's major concern is these dogs are essentially ticking time bombs – coming over, not being health tested. 'Diseases are now coming in through these dogs. They're affecting not just the dogs that are being imported, they could also affect the dogs already in this country and their owners. 'They've almost set up a Deliveroo for dogs and that is a real problem.' There is no requirement for rescue organisations to be licensed in England, Wales or Northern Ireland. It comes weeks after a bill that aims to stop animal smuggling and cruelty cleared the Commons with cross-party support. Legislation put forward by Liberal Democrat MP Dr Danny Chambers will reduce the number of animals for non-commercial entry into the UK, ban the import of puppies and kittens under six months old or heavily pregnant dogs and cats, and introduce a halt on the import of dogs and cats who have been 'mutilated', including having their ears docked. The MP for Winchester's Animal Welfare (Import of Dogs, Cats and Ferrets) Bill was supported by the Government, and will now proceed to the House of Lords on its passage to becoming law. Dr Chambers said: 'As a vet, I've seen the devastating consequences of puppy smuggling. It's unimaginably cruel to separate puppies and kittens from their mothers at a very young age, and then bring them across borders in substandard conditions where they're then sold for maximum profit by unscrupulous traders who prioritise profit over welfare.' He added: 'Careful consideration has been given to setting these limits, balancing the need to disrupt illegal trade with minimising impact on genuine pet owners. To underpin this, only an owner, not an authorised person, will be permitted to sign and declare that the movement of a dog or cat is non-commercial. He criticised the influence of social media on the increased demand for dogs with docked ears, and a party colleague hit out at the platforms' role in publishing animal abuse. He said: 'One reason that there is such an interest in dogs with cropped ears is that a lot of influencers on Instagram and other social media platforms pose with these dogs or show they have these new dogs with cropped ears. Many people aren't aware that this is a mutilation. 'They think it's how the dogs' ears normally look, and it drives a demand for dogs that look like this.'
Times
39 minutes ago
- Times
Financial Ombudsman Service boss paid £230,000 after ousting
The ousted head of the Financial Ombudsman Service received a pay-off of almost £230,000, it has been disclosed in the annual report. Abby Thomas, who left abruptly on 6 February, was paid £229,869 in severance payments on top of her normal salary. The payoff included £100,000 for loss of office, £107,692 in lieu of notice and £22,177 for a period of gardening leave that began on the day she left, the FOS said. MPs on the Treasury select committee have hit out at the manner of her departure and criticised the FOS chairwoman Baroness Manzoor for refusing to answer questions on why Thomas left and whether she was forced out. The FOS, which rules on complaints by consumers about financial services firms and can set compensation orders, is under pressure to reform. Rachel Reeves has pledged to curb its powers so it no longer acts like a regulator after complaints from the industry that it has increased the cost of 'mass redress events'. It has been dealing with a significant rise in claims, mainly related to car finance loans, but also because of concerns about other consumer loans and more people complaining about banks' handling of frauds. Dame Meg Hillier, chairwoman of the Treasury committee, said this month: 'The handling of this situation by the senior leadership has been deeply disappointing.' Thomas, a former Virgin Media executive, served for less than three years. She has been replaced by James Dipple-Johnstone as chief ombudsman and Jenny Simmonds as interim chief executive. Manzoor is due to retire on August 1. The FOS received 450,000 new inquiries in the year to March, up from 330,000. The motor finance industry is braced for a judgment from the Supreme Court this Friday that could determine the scale of compensation payments for failing to disclose commissions paid to dealers.
