Dame Meg Hillier backs tearful Chancellor Rachel Reeves
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It followed the chaos in the Commons on Tuesday night, when a last-minute U-turn on the Government's flagship welfare reforms wiped out £5 billion worth of savings.
The speculation about her future had an immediate impact on the financial markets.
The pound slid by 1.14% to 1.358 against the US dollar, and fell by 0.8% to 1.155 against the euro, striking its lowest level since April.
Meanwhile, the yield on Government bonds jumped amid concerns among investors.
During PMQs, Tory leader Kemi Badenoch said the chancellor looked 'absolutely miserable' and described her as a 'human shield' for Sir Keir.
She pushed Starmer on whether Ms Reeves would be in post at the next election.
After he did not directly reply, Ms Badenoch said: 'How awful for the chancellor that he did not confirm she would be in post.'
As the Prime Minister answered, Ms Reeves wiped away a tear.
Chancellor Rachel Reeves was visibly emotional (Image: UK Parliament) No 10 belatedly threw its weight behind Ms Reeves.
Asked why Sir Keir did not confirm in the Commons that he still had faith in the Chancellor, the Prime Minister's press secretary told reporters: 'He has done so repeatedly.
'The Chancellor is going nowhere. She has the Prime Minister's full backing.
'He has said it plenty of times; he doesn't need to repeat it every time the Leader of the Opposition speculates about Labour politicians.'
Asked about her tears, a spokesman for Ms Reeves said: 'It's a personal matter which, as you would expect, we are not going to get into.
'The Chancellor will be working out of Downing Street this afternoon.'
Reports suggested she had been involved in an altercation with Commons Speaker Sir Lindsay Hoyle shortly before Prime Minister's Questions.
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Asked about the speculation, Dame Meg told The Herald: 'It was a challenging job when she took it on. The hardest jobs in government, I think.'
She added: 'I've got great confidence in her. She's taken on a huge job. It was a very difficult hand dealt.
'I think she's taken on this difficult job and is doing a good job in that respect.
'Last night's thrown a big curveball. She's a resilient woman. I'm sure she will find a way, but I'm not going to start predicting her Budget.'
Changes to restrict eligibility for the personal independence payment (PIP) were abandoned on Tuesday just 90 minutes before MPs voted.
That prompted speculation that will need to be tax hikes.
Earlier in the day, Pat McFadden, told the BBC: "There's definitely a cost to what was announced yesterday, and you can't spend the same money twice, so more money spent on that means less for some other purpose."
However, he later told Times Radio that the Government would 'stick to the tax promises we made in the manifesto', effectively ruling out an increase to income tax, employee National Insurance or VAT.
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Powys County Times
an hour ago
- Powys County Times
Starmer vows to press on with welfare reform as he takes blame for U-turn
Sir Keir Starmer has insisted welfare reform is still on the table as he took the blame for Tuesday's U-turn in the face of a major backbench rebellion. In an interview with the BBC, the Prime Minister acknowledged his Government did not 'get the process right' and failed to 'engage in the way that we should have done' on welfare changes. But he added his Government would 'come through it stronger' as he vowed to 'reflect' on what needed to be done 'to ensure we don't get into a situation like that again'. Despite the setback, which saw changes to the personal independence payment (Pip) stripped out of his welfare legislation, Sir Keir said on Thursday his Government was 'pressing on with welfare reform'. Answering questions at the launch of Labour's NHS plan, he said: 'It is important we reform the system. Welfare isn't working.' The Prime Minister went on to praise disabilities minister Sir Stephen Timms, who is now leading a review of Pip, saying he was 'a thoroughly decent man of huge integrity that we can have faith in to do the review and make the changes that are necessary'. Sir Keir's U-turn saw planned changes to Pip eligibility put off until after Sir Stephen has completed his review of the benefit next autumn, leaving only changes to universal credit to go forward. That decision has caused a fiscal headache for Chancellor Rachel Reeves, with the £4.8 billion of savings the reforms were expected to deliver now unlikely to materialise. Economists have warned that this is likely to mean further tax rises in the autumn, and the Prime Minister did not rule out the possibility on Thursday. Ms Reeves has previously promised she would not need to repeat the £40 billion tax raid she set out in October 2024. Asked if he would repeat that commitment, Sir Keir said: 'No prime minister or chancellor is going to write a budget in advance, but we did really tough stuff in that budget last year.' But he added that last year's budget had already done much of the 'heavy lifting' on repairing the public finances. The Chancellor also declined to 'speculate' about tax rises ahead of the budget, but told broadcasters there was 'a cost to the welfare changes that Parliament voted through this week and that will be reflected in the budget'. Ms Reeves herself appeared alongside Sir Keir and Health Secretary Wes Streeting at the launch of the NHS plan on Thursday, a day after she had appeared visibly tearful in the Commons during Prime Minister's Questions. The Chancellor told broadcasters it had been related to a 'personal issue', while Sir Keir gave her his full backing, adding: 'I think it's just fantastic she's here and, as I say, none of this would be happening if she hadn't taken the decisions that she's taken.' Questions about the Chancellor's future had sparked a sharp fall in the value of UK government bonds on Wednesday, but the markets rallied on Thursday morning following repeated reassurances she was safe in Number 11.
Powys County Times
an hour ago
- Powys County Times
NI Communities Minister attacks ‘shameful' welfare reform plans
The Government's 'shameful' welfare reform plans will end up increasing the social security bill in Northern Ireland rather than generating any savings, the Communities Minister has said. Gordon Lyons said the Labour Government had made an 'incredible mess' of its welfare reform agenda. On a separate issue related to the benefits system, Mr Lyons said he had received confirmation from the Treasury that Stormont could potentially share in savings achieved by any Stormont-devised plan to target fraud around benefit payments in Northern Ireland. The minister said he would now proceed with a business case on a fraud prevention plan with the hope of getting it on the agenda of the Executive for consideration. At an appearance before his Assembly scrutiny committee, the minister also said that the Government's U-turn on eligibility for winter fuel payments for pensioners would result in 86% of pensioners in Northern Ireland (288,000) receiving the payment this coming winter – a proportion higher than the UK average of 80%. Facing questions from MLAs at Stormont on Thursday, Mr Lyons also defended his own department's recently published draft poverty strategy, a document that has faced criticism from several community and civic society organisations. The DUP minister's appearance came days after the UK Government was forced into a late climbdown on a central plank of its welfare reform agenda in a bid to avert a major backbench rebellion. In a late concession on Tuesday, only 90 minutes before MPs were to vote on the Bill, ministers shelved plans to restrict eligibility for the personal independence payment (Pip), with any changes now only coming after a review of the benefit. Mr Lyons was scathing of the Government's approach while giving evidence to the committee. 'I think it is important that I place on record just how appalled I am by this Labour Government and how they have conducted themselves over the last number of months,' he said. 'I believe their approach has been shameful. I believe that it has caused significant stress for many in our society, even those who I believe would never have been affected by the changes that have been proposed and those that perhaps would have been. 'It has caused a huge amount of stress.' The minister added: 'We're at very early stages of assessment, but we believe ultimately that it will end up costing, it will not create any saving at all in Northern Ireland. 'So, I think that that has been an incredible mess, they've made a real hames of it, if I'm being honest.' 🗣️ Minister @GordonLyons1 is calling on you to take part. Help shape @NIExecutive 's Anti-Poverty Strategy by sharing your ideas and experiences. Let's work together to tackle Poverty in society. 🔗 — Communities NI (@CommunitiesNI) July 2, 2025 On the winter fuel payments, Mr Lyons said: 'There are 336,000 pensioners in Northern Ireland and HMRC are now estimating that 86% or 288,000 will receive the winter fuel payment in 25/26 because they have an income of less than £35,000. 'Twenty per cent will not receive it in the UK as a whole, that is only 14% in Northern Ireland. Again, another mess by this Government. It was inevitable that they would have had to have changed course.' The minister said he had received confirmation on Thursday that Northern Ireland could potentially have a share of savings generated by any welfare fraud measures taken by the Executive. 'If there are savings through us tackling welfare fraud and error that are certified by the Office for Budget Responsibility, the Treasury will consider providing for us a share of those savings,' he said. 'And those savings are massive. 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The Sun
an hour ago
- The Sun
Benefits reforms would decimate my £14k handouts, without PIP my luxuries like fags & posh pet accessories would be gone
A SENSE of ease comes over me, as I read the news on the sun-trap terrace which overlooks my sprawling garden as I realise my benefits aren't going anywhere. Until Tuesday a guillotine was hanging above me, threatening to cut off my monthly PIP payments, but thanks to a retreat from Keir Starmer they're safe… for now. 5 5 Reforms would have seen disabled Brits like me face stricter tests to qualify for support the changes have now been shelved entirely — with no set date for when, or if, they will happen How long my comfortable life will last remains to be seen as it seems my £14,400 income from Universal Credit and PIP are always up for grabs, no matter the party in power. I've come to see the majority of political parties as the real thugs. Whoever is in power, you can guarantee they'll have threatened - or have already implemented - major cuts to my income. Had Labour's suggested cuts come into play I may have lost £600 of the total sum of £1200 I receive in benefits a month. It might seem like a lot but I implore you to bear in mind that minimum wages, full-time, meets £2,000 a month. So, my total benefits aren't exactly a footballer's salary or an heir's trust fund. For Universal Credit, I now get £381 housing benefit; £201 for caring over 24 hours a week and £400 for being unemployed due to my schizophrenia (it seems to change month-by-month and is constantly under review meaning this could also be up for grabs). PIP is a standard, monthly payment of £295 I always get. It helps with costs associated with my illness - regardless of whether or not I'm in work. The proposal of a points system for PIP meant I would lose it completely as I only score 2 points for a few concerns over 12 questions (in total mine was 11 points). For example: communication can be hard in groups and I often fall out with friends and family - especially on the internet, phone or Whatsapp. Disability benefit explained - what you can claim Or I might need prompting for my weekly bath, simply because I'm getting smelly. These side effects all only score 2 points, not the proposed 4 to keep PIP. This week Reeve's plans were watered down by Starmer, thanks to some more moral Labour backbenchers (with backbones?) Given the hateful responses I receive when I speak publicly about claiming benefits, I doubt I've heard the last of any of our 'disability benefits being axed.' As I casually scroll through the comments I received on social media, I get more angry faces and hateful comments than murderers, child killers and rapists. I have to disagree with all of them and believe I - we - deserve support from the state for a severe mental illness, mine is schizo-affective disorder, and for putting in 50 hours a week caring for my partner, a wheelchair user. I also believe without the cost of children, I should be able to spend my stipend on little luxuries like my 60 fags a day habit and hand-painted cat food bowls which I imported for £75 from India. I'm aware that many countries' welfare states don't exist, like India where my cat bowls hail from, so I'm still grateful for any support I do receive. What is PIP? HOUSEHOLDS suffering from a long-term illness, disability or mental health condition can get extra help through personal independence payments (PIP). The maximum you can receive from the Government benefit is £172.75 a week. PIP is for those over 16 and under the state pension age, currently 66. Crucially, you must also have a health condition or disability where you either have had difficulties with daily living or getting around - or both- for three months, and you expect these difficulties to continue for at least nine months (unless you're terminally ill with less than 12 months to live). You can also claim PIP if you're in or out of work and if you're already getting limited capability for work and work-related activity (LCWRA) payments if you claim Universal Credit. PIP is made up of two parts and whether you get one or both of these depends on how severely your condition affects you. You may get the mobility part of PIP if you need help going out or moving around. The weekly rate for this is either £26.90 or £71. While on the daily living part of PIP, the weekly rate is either £68.10 or £101.75 - and you could get both elements, so up to £172.75 in total. You can claim PIP at the same time as other benefits, except the armed forces independence payment. Make a claim by calling the Department for Work and Pensions (DWP) on 0800 917 2222. 5 5 It's not just trolls saying I'm a 'leech' or 'scrounger' who I face criticism from though - even doctors can't agree on what schizophrenia is and many naysayers even go as far as to say "it's only in the mind & there's nothing wrong at all" or that it's just a 'human response to traumatic life events'. But what they don't factor in is the major physical toll my mental health takes on my body. I'd like to offer these negative Nellys a day's worth of my medication and see how they get on. My boyfriend Paul was mostly in bed asleep for three days after just one dose he mistook for a paracetamol which I've taken three times a day for over two decades. This tiredness is real. Paranoia is real, it's hard to be around more than one person when you're trying to read code behind everyone's speech (a typical schizo-spectrum symptom known as 'thought broadcasting'). The poor personal hygiene is real, I might only bathe once a week. My anxiety is crippling, too, but I've learned to put on a brave face and try to remain calm and positive. Still, even a brave face doesn't erase a churning stomach. But Reeve's 'four point' system didn't take these things into account. You may well have needed to prove that you have an actual carer come in to wash your bottom twice a day to get 4 points on PIP benefits. WHAT WERE THE PROPOSED CHANGED TO PIP? DISABLED Brits would have faced stricter tests to qualify for support under the original benefits crackdown. They would have needed to score at least four points in one activity like washing, dressing, or preparing food. Currently, people can qualify by scoring eight points across multiple tasks, making it easier to access the benefit. Last week, Labour agreed to limit the crackdown to new claimants only after a backlash from MPs. But under the latest retreat, the changes have now been shelved entirely — with no set date for when, or if, they will happen. Sir Keir Starmer suffered a major rebellion this week by 49 of his own MPs tonight as his welfare reforms scraped through after another round of last-minute concessions. But after more fury from the backbenches, he shelved controversial disability benefit reforms to stave off a Labour revolt. Ministers have now scrapped plans to tighten rules for Personal Independence Payments (PIP) after furious backbenchers warned they would sink the controversial Bill. In the end, MPs voted the legislation through by a majority of 75, with 335 in favour and 260 against. Any proposed changes to Personal Independence Payments now won't kick in until after a review has taken place. The PIP benefits - the main disability welfare payment for those with a disability - is subject to a review by Welfare Minister Sir Stephen Timms. The benefit payments are in place to help those affected with daily tasks such as mobility. Payments currently start at £1,500 but rise to £9,600 which are paid out even if someone is still working. The daily living rate comes in at £73.90 for the lower rate and £110.40 for the higher rate. Figures show that the mobility rate is worth £29.20 and rises to £77.05 for the higher rate. Ministers have revealed that 1,000 people per day are claiming PIP - which is the equivalent of the size of Leicester every year. Following a major rebellion, those who are now claiming PIP be able to claim the same amount of money. But for new claimants from November 2026, there will be a set of stricter measures set out as the government aims to reduce spending on the benefits and get people back to work. Never mind reeking too much to leave the house and be in public - let alone in an office. This idea that work might make us better - which Reeves drove home and used to justify her cruel cuts - felt like gaslighting. 'We believe if you can work, you should work.' she stated. But PIP is a benefit you can also claim while working. Like me, many need their benefits - both PIP and Universal Credit - to 'top-up' part-time work wages and that allows them to manage their disability, to care for a loved one, or both. For ten years in my twenties I worked two-three jobs to make ends meet. I always ended up on the mental health crisis phoneline, with a duty nurse telling me I needed to take substantial time off or quit my job. Eventually I quit working full-time for good, and my mental health has improved markedly. I now care full-time and put in 10-16 hours of writing a week. I know first hand, poverty doesn't cure mental illness (or any disability) - it exasperates them, and only makes them worse - putting even more strain on an already underfunded NHS. Therefore any kind of cuts to disability benefits, particularly those that penalise people with mental health issues will only cost us more in the long run, both in budgets and lives. And while I appreciate that reforms may be on hold for now I dread to think what could come out in Sir Stephen Timms' PIP review at the end of 2026. But I beg Labour not to cast people like me aside. We're not scroungers and for us PIP is a lifeline. 5
