Welfare rebellion looms for Starmer despite concessions to Labour rebels
Ministers hope a partial U-turn will be enough to win over Labour rebels when MPs vote on welfare changes on Tuesday.
The concessions included protecting people claiming personal independence payment (Pip) from changes due to come into effect in November 2026, and rowing back plans to cut the health-related element of universal credit.
But backbench anger has continued to simmer, with a statement from Work and Pensions Secretary Liz Kendall laying out the concessions on Monday receiving a negative response.
Asked whether he was 'confident' that the concessions had done enough to secure passage of the Universal Credit and Personal Independent Payment Bill, disabilities minister Sir Stephen Timms would only tell Sky News: 'I certainly hope it passes.'
Some 126 Labour MPs had previously signed a 'reasoned amendment' proposed by Treasury Committee chairwoman Dame Meg Hillier that would have stopped the legislation if approved.
That rebellion appeared to have been averted after Dame Meg described concessions agreed on Friday as a 'workable compromise'.
But in the Commons on Monday, she was one of several senior Labour figures to raise concerns about the Government's revised proposals, while another MP involved in negotiations, Debbie Abrahams, suggested ministers had rowed back on what had been agreed.
A second amendment rejecting the Bill has been put forward by York Central MP Rachael Maskell with the backing of 138 disability groups, saying disabled people had 'yet to have agency in this process'.
Ms Maskell's amendment is reported to have been signed by only around 35 Labour MPs – far fewer than the 83 needed to overturn Sir Keir's majority, but enough to deliver the largest rebellion of his premiership just before the first anniversary of Labour's election victory.
Other sceptical MPs are expected to abstain on Tuesday, but could vote against the Bill next week if there are no further concessions.
One of the chief concerns revolves around a review of Pip to be carried out by Sir Stephen and 'co-produced' with disabled people.
His review is not expected to report until autumn next year, making it difficult to incorporate his findings into the Pip changes due to take place at the same time.
Ms Abrahams suggested the timing meant the outcome of the review was 'pre-determined', while Sarah Owen, another select committee chairwoman, warned it could create a 'three-tier' benefit system.
Groups including Disability Rights UK and Disabled People Against Cuts criticised the Government's claim that Sir Stephen's review would be 'co-produced' with them and urged Labour rebels to stand firm.
They said: 'The Government have made it very clear that they are intent on slashing the support that so many disabled people rely on to work and live independently, no matter how many disabled people tell them what a harmful policy this will be.'
Tory leader Kemi Badenoch said her party's MPs would vote against the proposals, describing them as 'not serious welfare reform' and saying ministers had 'watered down the small savings Labour were making'.
The original proposals were expected to save £4.8 billion by 2030, but Ms Kendall revealed on Monday that the revised proposals were likely to save less than half that figure.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
29 minutes ago
- Glasgow Times
Any cut to cash Isa allowance ‘may not prompt savers to boost their investments'
The comments follow speculation that plans to cut the annual tax-free cash Isa allowance could be announced in Chancellor Rachel Reeves's Mansion House speech on July 15. The Government is looking at options for reforms to Isas to get what it feels is the right balance between cash and equities, to help savers earn better returns, boost the culture of retail investment, and support the push for growth. The Financial Conduct Authority (FCA) has previously said there are around seven million adults in the UK with £10,000 or more in cash savings who may be missing out on the benefits of investing throughout their lives. Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'Cash Isas are often a first port of call when people are starting out, and they'll often gradually move over into investments as they find their feet. 'If the speculation is accurate, it means they'll have less available to transfer into a stocks and shares Isa – effectively reducing investments rather than boosting them. 'This is an issue which requires a carrot not stick approach. 'We know through extensive research that the barriers to investing are behavioural, so it's through encouragement and increased confidence that we will all increase the number of retail investors. 'This week's announcement of radical changes to financial information, through targeted support and changes to the boundary between financial advice and guidance, is a major breakthrough in supporting people to find that confidence to make the first step.' The FCA set out proposals earlier this week to help more people navigate tricky financial decisions and boost confidence when getting to grips with investments. The proposals would enable firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. Brian Byrnes, head of personal finance at savings provider Moneybox, said: 'Over the last two decades since their introduction, Isas have grown to become a much loved and trusted tool by the British public and Isa wrappers have become synonymous with their £20,000 annual limit. 'The current speculation around potential changes to the cash Isa is undoubtedly already causing uncertainty and confusion for consumers, which will weigh particularly heavily on first-time savers and those with less financial confidence who will naturally be more hesitant to explore new products. 'Simply cutting the tax-fee allowance on cash Isas will not necessarily prompt equal inflows into investing products either. 'People opt to use cash Isas over their stocks and shares counterparts for a multitude of reasons, including risk aversion, and reducing the amount of money these savers can put into the cash Isa is unlikely to change this mindset. 'Cash Isas specifically are perfect for anyone looking to build up emergency savings and achieve their short to medium-term financial goals. 'Once people have the peace of mind and security that cash savings provide they are more likely to have the confidence to start investing for their future.' Jeremy Cox, head of strategy at Coventry Building Society, said: 'The days of peaks and troughs in the cash Isa market are long gone. 'We used to see a rush to make the most of the cash Isa allowance by savvy savers at the beginning and end of each tax year. 'Since the recent uncertainty around the future cash Isa limit, and with higher interest rates eating into the tax-free personal savings allowance, more savers have been topping up their Isa contributions every month.' He added: 'Changing limits around cash Isas would be a risky move for the Government – these accounts are extremely popular with millions of savers, many close to or in retirement who don't want the risk and uncertainty associated with investment in stocks and shares. 'The billions being saved every year are an indication of how tax policy can be really successful in encouraging people to save responsibly.' But Michael Healy, UK managing director of trading platform IG, said: 'We're calling for the cash Isa to be scrapped altogether, so we can start channelling more tax relief and long-term wealth into reviving the UK stock market. 'Successfully building a culture of investing would have a seismic impact.' In May, Ms Reeves confirmed she does not plan to reduce the overall £20,000 limit on the amount that can be put into Isas each year. In an interview broadcast on BBC Newscast, the Chancellor was asked whether, in a few years' time, someone would be able to put a whole £20,000 per year into an Isa, as they are able to do now. Ms Reeves told the BBC: 'First of all, very few people are able to save £20,000 a year … we still want people to be able to save and I'm certainly not going to reduce that limit.' The Financial Times reported this week that, according to a Whitehall figure, discussions were still taking place about the precise level for the cash Isas. While cash savings provide an important financial buffer, the Government also wants to see more consumers benefit from the long-term returns that investing can provide. Ms Reeves has said: 'It's really important that we support people to save, to achieve their aspirations. 'I'm not going to reduce the £20,000 Isa limit but I do want people to get better returns on their savings, whether that's in a pension or in their day-to-day savings.'
South Wales Guardian
29 minutes ago
- South Wales Guardian
Any cut to cash Isa allowance ‘may not prompt savers to boost their investments'
The comments follow speculation that plans to cut the annual tax-free cash Isa allowance could be announced in Chancellor Rachel Reeves's Mansion House speech on July 15. The Government is looking at options for reforms to Isas to get what it feels is the right balance between cash and equities, to help savers earn better returns, boost the culture of retail investment, and support the push for growth. The Financial Conduct Authority (FCA) has previously said there are around seven million adults in the UK with £10,000 or more in cash savings who may be missing out on the benefits of investing throughout their lives. Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'Cash Isas are often a first port of call when people are starting out, and they'll often gradually move over into investments as they find their feet. 'If the speculation is accurate, it means they'll have less available to transfer into a stocks and shares Isa – effectively reducing investments rather than boosting them. 'This is an issue which requires a carrot not stick approach. 'We know through extensive research that the barriers to investing are behavioural, so it's through encouragement and increased confidence that we will all increase the number of retail investors. 'This week's announcement of radical changes to financial information, through targeted support and changes to the boundary between financial advice and guidance, is a major breakthrough in supporting people to find that confidence to make the first step.' The FCA set out proposals earlier this week to help more people navigate tricky financial decisions and boost confidence when getting to grips with investments. The proposals would enable firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. Brian Byrnes, head of personal finance at savings provider Moneybox, said: 'Over the last two decades since their introduction, Isas have grown to become a much loved and trusted tool by the British public and Isa wrappers have become synonymous with their £20,000 annual limit. 'The current speculation around potential changes to the cash Isa is undoubtedly already causing uncertainty and confusion for consumers, which will weigh particularly heavily on first-time savers and those with less financial confidence who will naturally be more hesitant to explore new products. 'Simply cutting the tax-fee allowance on cash Isas will not necessarily prompt equal inflows into investing products either. 'People opt to use cash Isas over their stocks and shares counterparts for a multitude of reasons, including risk aversion, and reducing the amount of money these savers can put into the cash Isa is unlikely to change this mindset. 'Cash Isas specifically are perfect for anyone looking to build up emergency savings and achieve their short to medium-term financial goals. 'Once people have the peace of mind and security that cash savings provide they are more likely to have the confidence to start investing for their future.' Jeremy Cox, head of strategy at Coventry Building Society, said: 'The days of peaks and troughs in the cash Isa market are long gone. 'We used to see a rush to make the most of the cash Isa allowance by savvy savers at the beginning and end of each tax year. 'Since the recent uncertainty around the future cash Isa limit, and with higher interest rates eating into the tax-free personal savings allowance, more savers have been topping up their Isa contributions every month.' He added: 'Changing limits around cash Isas would be a risky move for the Government – these accounts are extremely popular with millions of savers, many close to or in retirement who don't want the risk and uncertainty associated with investment in stocks and shares. 'The billions being saved every year are an indication of how tax policy can be really successful in encouraging people to save responsibly.' But Michael Healy, UK managing director of trading platform IG, said: 'We're calling for the cash Isa to be scrapped altogether, so we can start channelling more tax relief and long-term wealth into reviving the UK stock market. 'Successfully building a culture of investing would have a seismic impact.' In May, Ms Reeves confirmed she does not plan to reduce the overall £20,000 limit on the amount that can be put into Isas each year. In an interview broadcast on BBC Newscast, the Chancellor was asked whether, in a few years' time, someone would be able to put a whole £20,000 per year into an Isa, as they are able to do now. Ms Reeves told the BBC: 'First of all, very few people are able to save £20,000 a year … we still want people to be able to save and I'm certainly not going to reduce that limit.' The Financial Times reported this week that, according to a Whitehall figure, discussions were still taking place about the precise level for the cash Isas. While cash savings provide an important financial buffer, the Government also wants to see more consumers benefit from the long-term returns that investing can provide. Ms Reeves has said: 'It's really important that we support people to save, to achieve their aspirations. 'I'm not going to reduce the £20,000 Isa limit but I do want people to get better returns on their savings, whether that's in a pension or in their day-to-day savings.'
The National
39 minutes ago
- The National
Celebrities call for UK Government not to ban Palestine Action
On Sunday, from Glastonbury's Other Stage, singer-songwriter Nadine Shah read out a statement against the UK Government's decision to ban campaign group Palestine Action. Home Secretary Yvette Cooper has published a draft order which would the group as terrorist organisations in the UK, meaning supporting or joining them could lead to up to 14 years in jail. READ MORE: Labour accused of 'breath-taking hypocrisy' over English oil refinery rescue In an open letter, leading artists including musicians Paul Weller, Massive Attack's Robert del Naja, Brian Eno and US artist Reggie Watts have joined Shah Actors Steve Coogan and Billy Howle are among those signing the statement which states: 'Palestine Action is intervening to stop a genocide. It is acting to save life.' Writers including Kamila Shamsie, Laline Paull and Pankaj Mishra have also signed, and said: 'Labelling non-violent direct action as 'terrorism' is an abuse of language and an attack on democracy.' They are joined by visual artists Jeremy Deller and Florence Peake, comedians Boyle, Francesca Martinez and Tez Ilyas. The open letter concludes: 'The real threat to the life of the nation comes not from Palestine Action but from Home Secretary Yvonne Cooper's efforts to ban it'. READ MORE: Protesters target Wimbledon over Barclays sponsorship links to Israeli arms firms In addition to the joint statement, Brian Eno said: 'On the one hand, 60,000 dead. On the other, a splash of paint on a plane. Which one are you most troubled by?' Poet Alice Oswald commented: 'Thank goodness for those who break minor laws in an attempt to uphold law itself". A spokesperson for Artists for Palestine UK said: 'Never before has a decision like this been challenged so immediately by artists and so widely across the country. If the Government persists with this ban, it will face anger and opposition on a massive scale.' The artists' statement in full "Palestine Action is intervening to stop a genocide. It is acting to save life. We deplore the government's decision to proscribe it. Labelling non-violent direct action as 'terrorism' is an abuse of language and an attack on democracy. "The real threat to the life of the nation comes not from Palestine Action but from the home secretary's efforts to ban it. We call on the government to withdraw its proscription of Palestine Action and to stop arming Israel."
