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DWP announces 'old' and 'new' PIP system ahead of benefits shakeup

DWP announces 'old' and 'new' PIP system ahead of benefits shakeup

Wales Online17 hours ago
Work and Pensions Secretary Liz Kendall has confirmed that those currently receiving Personal Independence Payment (PIP) will not be affected by the proposed changes outlined in the new welfare reform Bill. The Department for Work and Pensions' (DWP) primary disability benefit presently provides between £116.80 and £749.80 every four weeks to nearly 3.7 million people in England and Wales.
However, the proposed changes to eligibility will impact new PIP claimants when implemented next year. The DWP chief explained this will effectively create two PIP systems, pre-November 2026 and post-November 2026, operating concurrently to support individuals with disabilities, long-term illnesses, or physical or mental health conditions.
The Government's reversal on welfare cuts is expected to cost taxpayers around £2.5 billion by 2030, Ms Kendall told MPs on Monday, outlining concessions to Labour rebels. She noted that it is "very common throughout the benefits system to have existing claimants protected on old rules and old rates. That is what we are doing today".
The Office for Budget Responsibility (OBR) will confirm the financial details of the UK Government's adjusted welfare plans during the Autumn Budget, as reported by the Daily Record. With regards to worries over a possible "two-tier" benefits system for existing PIP recipients, Ms Kendall pointed out: "The fact is, our welfare system frequently ensures that existing claimants are shielded from new rates or rules, as people build their lives around that support and adjusting can be extremely challenging."
Previous forecasts by the DWP suggested that proposed reforms could see an additional 150,000 individuals sliding into poverty by 2030. Whilst this number is lower than the initial estimate of 250,000 additional cases of relative poverty brought on by housing costs, it remains a significant cause for concern.
The DWP's published modelling noted the estimate did not account for potential positive effects from increased funding and support for people with disabilities or long-term health conditions seeking employment.
Ms Kendall maintained that the revised amendments for PIP and Universal Credit "ensure no existing claimants are put into poverty". Ministers are counting on these concessions to avoid defeat when MPs cast their votes for the reforms on Tuesday, particularly in light of a "reasoned amendment" proposed by senior Labour backbencher Dame Meg Hillier. This amendment had the support of 126 Labour MPs, a number sufficient to jeopardise Sir Keir Starmer's majority.
However, on Friday, Dame Meg characterised the concessions as a "workable compromise". Labour MP and chair of the Work and Pensions Committee, Debbie Abrahams, has spoken out about the UK Government's apparent backtrack on previously negotiated concessions.
Speaking to ITV News, Ms Abrahams labelled the concessions as "good" but cautioned that they were not quite sufficient for a deal just yet. Ms Abrahams expressed her discontent, saying, "The actual offer that was put to one of the negotiating team wasn't actually what we thought we had negotiated on Wednesday and Thursday. There are some issues around that."
Her statement reflects unease over the negotiation process's transparency and outcome.
Concerns were also raised by both Dame Meg and Ms Abrahams in the Commons regarding the timeliness of a forthcoming review of PIP led by disabilities minister Sir Stephen Timms, suggesting it may not impact the planned changes set for November 2026 soon enough.
On the opposing side, Conservative shadow work and pensions secretary Helen Whately has levelled criticism against the UK Government, accusing them of making "unfunded U-turns costing billions and welfare plans that are not worth the paper that they are written on". She sharply criticised, "Their latest idea is a two-tier welfare system to trap people in a lifetime on benefits and deny them the dignity of work while leaving the taxpayer to pick up the ever-growing bill."
Tory leader Kemi Badenoch confirmed the party's stance on Monday evening, stating they would vote against the Labour Government's proposals, dismissing them as "not serious welfare reform".
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Labour sees biggest first-year poll drop for governing party since 1990s
Labour sees biggest first-year poll drop for governing party since 1990s

The Herald Scotland

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  • The Herald Scotland

Labour sees biggest first-year poll drop for governing party since 1990s

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The Conservative government led by Boris Johnson elected in 2019 saw its first-year poll ratings also slip by seven points, but from 46% to 39%. There were smaller drops at the start of Labour's third term in 2005-06 (down five points in 12 months) and at the start of Conservative leader David Cameron's first term as PM in 2010 (down three points), though Mr Cameron's second win in 2015 was followed by a larger six-point fall. The one recent exception to this trend was the Conservative minority government led by Theresa May that was elected in 2017, with Tory support in the polls increasing by two points over 12 months, from 40% to 42%. Theresa May speaks in Downing Street after the 2017 general election, which led to the formation of a minority Conservative government (Jonathan Brady/PA) A first-year drop in the polls for a governing party is typically accompanied by a rise in support for the main opposition in Parliament. 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The Times letters: Starmer, leadership and the U-turn on welfare
The Times letters: Starmer, leadership and the U-turn on welfare

Times

timean hour ago

  • Times

The Times letters: Starmer, leadership and the U-turn on welfare

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Has the wrong thing suddenly become the right thing?Peter ClarkLondon SE23 Sir, Dr Karin Englehart (letter, Jul 1) should rest assured that nothing has changed since she was denied the post of a medical assessor because she suggested that a benefit claimant's account should not necessarily be taken at face value. Whenever I expressed a doubt that a patient would be granted a benefit, I was assured that they would be guided in how to do so Surinder Bakhshi (ret'd) Birmingham Sir, Regarding Martha's Rule and the training of doctors (letters, Jul 1 & 2), fellow physicians would often consult my father on cases. His skill as a diagnostician was a source of amusement to our family. He would state mysteriously that the person on the table next to us at a restaurant had a particularly interesting condition. Late in his life, I asked him how he became so good at diagnosis. 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Starmer faces Labour turmoil and global volatility as he marks year in Number 10
Starmer faces Labour turmoil and global volatility as he marks year in Number 10

Glasgow Times

timean hour ago

  • Glasgow Times

Starmer faces Labour turmoil and global volatility as he marks year in Number 10

The Prime Minister led his party back into power with more than 400 MPs on July 4 last year – clinching a majority just short of Sir Tony Blair's landslide in 1997. But with a daunting in-tray of problems including a stuttering economy, creaking public services and global volatility, his political honeymoon period was short-lived. The Prime Minister said his Cabinet should look back with a sense of 'pride' at the first year in office (Carl Court/PA) His personal popularity is now the lowest of any British premier after their first 12 months in office, political scientist and polling guru Professor Sir John Curtice said. 'There were pretty clear potential weaknesses before they even started, and most of those weaknesses have basically just been exposed over the course of the last 12 months,' he told the PA news agency. Sir John said part of the problem lay in what he described as a failure of narrative in setting out the Government's vision for change to the public. 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The fallout threatens to cause lasting damage to morale in Labour ranks, with some rebels calling for a reset in relations between the parliamentary party and the leadership before fractures widen. Images of the Chancellor crying in the Commons on Wednesday have also led to questions about her future, although a Treasury spokesman cited a 'personal matter' as the cause of her distress and Number 10 said she would remain in post. Asked whether it was time for a course correction, Downing Street has said the Prime Minister will 'plough on' with the 'very busy agenda' of Government. But the MP quoted above said: 'The idea that they can keep carrying on as they've been carrying on is suicidal. 'They have no real sense of how the party thinks and feels.' Others had a more optimistic view of the year ahead, with a Starmer loyalist who supported the Bill suggesting the upset could be salvaged with a 'measured but solid response' from the Government. 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Sir John said that parties such as Reform and the Greens offer more choice to voters wanting to express their discontent with Labour while the Tories continue to flounder in the polls. 'The character of the challenge is different from what it has been historically,' he said. Tim Bale, professor of politics at Queen Mary University, said people had been expecting bold change on areas such as workers' rights and growth, and the Government's achievements so far were 'pretty small beer' by comparison. Critics say the first year has instead been marked by a series of U-turns, including a partial reversal of cuts to the winter fuel payment and the move to launch a national inquiry into grooming gangs after months of resisting opposition pressure to do so. The Government disputes that framing, pointing out for example that ministers had never explicitly ruled out a statutory probe into child sexual exploitation but waited for a review to be carried out before making a decision. Prof Bale said he believed the first year had gone 'worse than most people imagined' and warned 'it's difficult for a leader who starts badly to persuade people that he or she is what they need.' But he said the problems were not necessarily fatal, adding that setbacks early on in a premiership have an upside in allowing for more time to 'turn it round'. 'If you look back to Margaret Thatcher, she was able to do that, so it's not a foregone conclusion that all is lost, even for Keir Starmer himself,' he said. Arguing that the Government could recover in the polls if its plans for the economy and public services pay off, he added: 'I think you can see the light at the end of the tunnel, but it's a very long tunnel.' Sir Keir has pledged to lead a 'decade of national renewal' through a phased approach to Government, the first year of which he said would involve 'cleaning up the mess' his administration had inherited. 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