Starmer ditches Pip benefit reforms in face of Labour revolt
The move will cause a headache for Chancellor Rachel Reeves, who has seen a forecast £4.8 billion saving from the welfare budget whittled away through a series of concessions, leaving her to seek extra money through spending cuts, tax hikes or borrowing to balance the books.
The Resolution Foundation's chief executive Ruth Curtice said the concessions meant the reforms would now make no 'net savings' in 2029/30 – a key year for Ms Reeves's fiscal targets – even if they did reduce costs in the longer term.
The decision to remove the Pip changes from the Universal Credit and Personal Independence Payment Bill was announced just 90 minutes before MPs voted on Tuesday night.
The legislation cleared its first hurdle by 335 votes to 260, majority 75.
Despite the late concession, there were 49 Labour rebels, the largest revolt so far of Sir Keir's premiership.
Work and Pensions Secretary Liz Kendall insisted the Labour Party was '100%' behind the Prime Minister, but acknowledged there were 'lessons to be learned' after the rebellion.
She also appeared to express regret over the handling of the issue, saying: 'I wish we had got to this point in a different way.'
But Ms Kendall also insisted it was 'really important we passed this Bill', saying: 'We need to make changes, because too many people have been written off, are left to a life on benefits, when being in good work is so important.'
The decision to remove key parts of the Bill is remarkable for a Government with a working majority of 165 and after just under a year in office.
Tory leader Kemi Badenoch accused ministers of 'utter capitulation' and said the legislation was now 'pointless'.
She said: 'They should bin it, do their homework, and come back with something serious. Starmer cannot govern.'
Earlier, a Labour rebel attempt to halt the legislation was defeated by 179 votes.
A total of 44 Labour MPs including two tellers backed the bid by rebel ringleader Rachael Maskell, who described the Bill as 'unravelling' and 'a complete farce'.
A previous effort to kill the Bill had attracted more than 120 Labour supporters, but was dropped after the first partial U-turn on the legislation last week, which restricted the Pip changes to new claimants from November 2026.
That date has now been abandoned in the latest climbdown, with any changes now only coming after disability minister Sir Stephen Timms' review of the Pip assessment process.
Sir Stephen announced the climbdown in the middle of the debate on the legislation.
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'.
He said the 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 concession came after frantic behind-the-scenes negotiations in Westminster involving the Prime Minister, his Cabinet and wavering Labour MPs.
Charlotte Gill, head of campaigns and public affairs at the MS Society, said: 'We thought last week's so-called concessions were last minute. But these panicked 11th hour changes still don't fix a rushed, poorly thought-out Bill.'
But Jon Sparkes, chief executive of learning disability charity Mencap, said: 'The last-minute change relating to the review Sir Stephen Timms is leading sounds positive and we are pleased that the Government has listened.'
He added: 'Disabled people should not have to pay to fix black holes in the public finances.'
The Government's concessions have gutted the reforms, leaving only parts of the current Bill still on the table.
Proposals to cut the health element of universal credit by almost 50% for most new claimants from April 2026 remain in place, along with an above-inflation increase in the benefit's standard allowance.
In an earlier climbdown, Work and Pensions Secretary Ms Kendall said existing recipients of the health element of universal credit, and new claimants with the most severe conditions, would have their incomes 'fully protected in real terms'.
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Daily Mirror
9 minutes ago
- Daily Mirror
A year of Keir - Mirror experts cast their verdict on Labour's first 12 months
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Daily Mail
25 minutes ago
- Daily Mail
Neighbours star Madeleine West calls for Australian parents to receive child care subsidies from the government in wake of daycare abuse scandal
Madeleine West has ruffled a few feathers with her 'REVOLUTIONARY' call for the Australian Government put child care subsidies directly into parents' back pockets. The former Neighbours actress, 47, recently birthed her seventh child and on Friday, weighed in on the fiery debate surrounding child care centres in the wake of Joshua Dale Brown's arrest. The Melbourne child care worker, 26, has been charged with 70 offences, including sexual penetration of a child, producing child abuse material and recklessly contaminating goods to cause alarm or anxiety. The latter charge refers to alleged contamination of food with bodily fluids. His arrest triggered a public health alert, with Victoria's Chief Health Officer warning that 1,200 children should get STI testing. 'I'm just heading to work. I take my baby with me. I have from the beginning. So far, it's worked out. But it won't always and it doesn't work out for everyone,' Madeleine began in a video posted to Instagram. 'But I just had a brain wave. I qualify for the child care subsidy. So, why don't we cut out the middle man here? How about the government gives me the money instead of subsidising daycare?' 'And I stay home with my kids.' Madeleine widened her eyes and made a shocked sigh to emphasise her point as she bounced her newborn on her chest. 'I know it sounds simplistic but the simple fact is, if there is no access, there is no abuse.' From January 2026, Australian parents will have access to three days of guaranteed subsidised childcare after Labour brought the new laws forward ahead of the federal election. The 'three-day guarantee', first introduced by Prime Minister Anthony Albanese in December, will remove the current activity test and guarantee subsidies for families earning up to $530,000 per year. Madeleine lives in Suffolk Park, Byron Bay, where she purchased a $4.6million property in 2022. The actress turned child safety and victims' advocate moved to the coastal area to be closer to her six children after her breakup with celebrity chef Shannon Bennett. Previously, she and Shannon lived together in a $16million Melbourne mega-mansion, which they purchased after selling two other lavish properties for $7.7m and $5m respectively. Her call to action proved to be divisive. 'I know you mean well, but shaming working parents by implying you are given abusers access is not OK. Abusers are everywhere (sadly mostly in the home),' one annoyed parent wrote. 'Yes! Let's make raising our own children the norm again,' one supporter commented, with working mothers quick to criticise the notion that all women should stay at home. 'Oh please,' another retorted. 'You aren't the odd one out. Some mothers enjoy working for their mental health. Some mothers have to work for economic reasons. Women are allowed to be mothers as well as retain their ambition and identities outside of the home.' Even parents who backed Madeleine's call for the direct payments voiced their reservations about writing off daycare centres altogether. 'Excellent idea,' one dad said. 'Also, hate to be THAT guy but some kids receive their best care at daycare. Socialising with other kids, clean nappies, consistent meals… could you imagine those terrible parents who don't care about their kids getting more money to stay home and neglect their children? There are bad people everywhere. At home and at work. I see it too often in my line of work. But not discounting your idea which I'd love for my wife.' Madeleine's call to action proved to be divisive, with some parents voicing concerns about putting the onus on mothers to give up their careers in favour of child rearing Madeleine's post comes after Louise Edmonds, a founding member of the Independent Collective of Survivors and Karl Stefanovic exchanged a war of words on the topic. She appeared on Today on Thursday, advocating for a complete ban on male workers in the childcare sector. Stefanovic pushed back, highlighting the challenges already faced by men in the sector: 'Men have a right to work in that area. And so many of them are dedicated,' he said. 'The perception is already hard enough for them. And when a story like this happens, it makes it even more difficult.' Ms Edmonds argued while there are 'good men' that want to be positive role models, the safety of children must come before concerns about gender equality.
Glasgow Times
26 minutes ago
- Glasgow Times
'Build a fair social security system with dignity for all'
The UK Government's own assessment of their plans for welfare benefits tells us that. The UK Government's process of bringing forward proposals for cuts to Personal Independence Payment (PIP) and health-based Universal Credit for disabled claimants has been marked by chaos. This is decision making which has been irresponsible. These controversial changes to social security will see financial support for disabled people slashed in an effort to save £5 billion from the UK Government's welfare bill. The voices of disabled people have not been front and centre of the debate about how to build a better social security system. The changes represent a serious threat to disabled people's quality of life, dignity, and equality. Disabled people currently receiving PIP and Universal Credit continue under the current rules, with all new claimants facing harsh eligibility assessments which will see people go without the crucial support they need. Keir Starmer, the UK Prime Minister, might have done a partial U-turn on these plans for welfare benefits but instead of creating a fair welfare system for all, he has created a two-tier benefits system. New claimants will still be subjected to the new, harsher assessment regime, and will not receive the benefits they need and deserve. Scottish Greens are astonished that a UK Labour government would ever even contemplate such cruel and inhumane cuts at all. We are very disappointed that this cut in support for people who are unable to work due to disabilities and poor health after April 2026 will still go ahead. It is vital that we keep up the pressure to ensure that new claimants get what they need, because these reforms will hurt thousands of disabled people around the country for years to come. There is a lack of real evidence that a lower income will help disabled people to return to work. Cutting benefits will push more people into poverty. This could put further strain on local services such as the NHS and social care. Scottish Greens will keep fighting against these dangerous austerity measures from Labour and make the case for Scotland to build a fair social security system that treats everyone with dignity and respect. We have to recognise the power of disabled people's campaigning, and the importance of campaigning to deliver justice for disabled people continuing. The determination of disabled people and other activists is vital in the struggle to stop welfare cuts. We need to make sure that both the Scottish Government and the UK Government deliver security, and human rights for disabled people. This requires investing in our communities including local council services and not cutting the support disabled people rely on. We can work with disabled people's organisations who are committed to fighting poverty, and supporting and championing the rights of disabled people, their families, and carers. It is possible to create a more compassionate welfare benefits system that supports the wellbeing of disabled people.
