This week will haunt the prime minister after his most damaging U-turn yet
It has been a painful week to watch.
A U-turn in slow motion, culminating in a midnight climbdown as Number 10 agreed to concede to defiant MPs on Thursday night.
The concessions are considerable. They mean, among other compromises, that existing claimants of personal independence payments (PIP) and the health aspect of Universal Credit will be protected from welfare reforms.
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Some MPs, like and Nadia Whittome, remain unconvinced, but they were never high on the list of rebels the government expected to persuade.
Ministers now hope that with the backing of MPs like Dame Meg Hillier, the chair of the Treasury Select Committee, the bill will pass the Commons.
Their problems won't end there, though.
Firstly, there is the question of money. The Resolution Foundation estimates the concessions will cost £3bn of the £5bn the hoped to save from the welfare reforms.
The 's spokesperson says the changes will be fully funded in the budget and there will be no permanent increase in borrowing. They won't comment on any potential tax rises to plug the gap in Rachel Reeves' finances.
The bigger cost, though, is the political one.
A year ago, when Sir Keir Starmer strode into Downing Street with a thumping majority, few could have imagined how the last few days would play out.
Read more:
More than 120 MPs, nearly a third of the parliamentary party and more than the total number of Tory MPs, publicly prepared to rebel on a flagship policy.
How did it come to this? How did the prime minister, and the people around him, not see a rebellion coming when there had been signs MPs weren't happy for weeks?
Those are the questions being asked by senior Labour figures behind the scenes.
Sir Keir's spokesperson says the prime minister consistently engages with colleagues, and parliamentary engagement takes many forms.
But a lack of engagement with backbenchers has led to the prime minister's most damaging U-turn yet, and this week will haunt the prime minister beyond Tuesday's crunch vote.
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Yahoo
12 hours ago
- Yahoo
This week will haunt the prime minister after his most damaging U-turn yet
It has been a painful week to watch. A U-turn in slow motion, culminating in a midnight climbdown as Number 10 agreed to concede to defiant MPs on Thursday night. The concessions are considerable. They mean, among other compromises, that existing claimants of personal independence payments (PIP) and the health aspect of Universal Credit will be protected from welfare reforms. 👉 Follow Electoral Dysfunction on your podcast app 👈 Some MPs, like and Nadia Whittome, remain unconvinced, but they were never high on the list of rebels the government expected to persuade. Ministers now hope that with the backing of MPs like Dame Meg Hillier, the chair of the Treasury Select Committee, the bill will pass the Commons. Their problems won't end there, though. Firstly, there is the question of money. The Resolution Foundation estimates the concessions will cost £3bn of the £5bn the hoped to save from the welfare reforms. The 's spokesperson says the changes will be fully funded in the budget and there will be no permanent increase in borrowing. They won't comment on any potential tax rises to plug the gap in Rachel Reeves' finances. The bigger cost, though, is the political one. A year ago, when Sir Keir Starmer strode into Downing Street with a thumping majority, few could have imagined how the last few days would play out. Read more: More than 120 MPs, nearly a third of the parliamentary party and more than the total number of Tory MPs, publicly prepared to rebel on a flagship policy. How did it come to this? How did the prime minister, and the people around him, not see a rebellion coming when there had been signs MPs weren't happy for weeks? Those are the questions being asked by senior Labour figures behind the scenes. Sir Keir's spokesperson says the prime minister consistently engages with colleagues, and parliamentary engagement takes many forms. But a lack of engagement with backbenchers has led to the prime minister's most damaging U-turn yet, and this week will haunt the prime minister beyond Tuesday's crunch vote.
Yahoo
13 hours ago
- Yahoo
Warnings of tax rises after Downing Street welfare U-turn
There are predictions of tax rises in the Autumn budget after Sir Keir Starmer U-turned on welfare reforms in the face of a backbench rebellion. The Prime Minister said that the concessions strike 'the right balance', but think tanks have warned that the changes announced in the early hours of Friday morning have made Rachel Reeves's 'already difficult Budget balancing act that much harder'. Downing Street declined to rule out the possibility of increases in the autumn, telling reporters on Friday that 'tax decisions are set out at fiscal events'.The concessions on offer include protecting personal independence payments (Pip) for all existing claimants, while all existing recipients of the health element of Universal Credit will have their incomes protected in real terms. The Institute for Fiscal Studies (IFS) said on Friday that the changes make tax rises in the budget expected in the autumn more likely. Associate director Tom Waters said: 'These changes more than halve the saving of the package of reforms as a whole, making the Chancellor's already difficult Budget balancing act that much harder.' Ruth Curtice, chief executive at the Resolution Foundation, said that 'the concessions aren't cheap, costing as much as £3 billion and more than halving the medium-term savings from the overall set of reforms announced just three months ago'. She added: 'This adds to the already mounting pressure to deliver fresh consolidation in the Budget this Autumn.' Asked about how the climbdown would be funded, Downing Street said on Friday that 'There'll be no permanent increase in borrowing, as is standard. 'We'll set out how this will be funded at the budget, alongside a full economic and fiscal forecast in the autumn, in the usual way.' Asked whether they could say there would be no tax rises, a Number 10 spokesman said: 'As ever, as is a long-standing principle, tax decisions are set out at fiscal events.' Some 126 Labour backbenchers had signed an amendment that would have halted the Universal Credit and Personal Independence Payment Bill in its tracks when it faces its first Commons hurdle on July 1. The list of Labour MPs putting their name to the amendment had been growing throughout the week, as Downing Street said that they would be pressing on with next week's vote. After the late-night U-turn, Sir Keir said that 'the most important thing is that we can make the reform we need'. 'We talked to colleagues, who've made powerful representations, as a result of which we've got a package which I think will work, we can get it right,' he added. 'For me, getting that package adjusted in that way is the right thing to do, it means it's the right balance, it's common sense that we can now get on with it.' While leading rebels believe the concessions are likely to be enough to win over a majority, some remain opposed to the plans in their current form. Dr Simon Opher, who represents Stroud, said in a statement that he is glad the Government 'are listening', but that the changes 'do not tackle the eligibility issues that are at the heart of many of the problems with Pip'. 'The Bill should be scrapped and we should start again and put the needs of disabled people at the centre of the process,' he said. It is also understood that talks are underway over rebel attempts to lay another amendment to seek to delay the plans, as reported by The Guardian. The fallout also threatens to cause lasting damage, with some backbenchers having called for a reset of relations between Number 10 and the parliamentary party. Speaking to the PA news agency, a number of Labour backbenchers expressed deeper frustration with how Downing Street has handled its backbenchers since last year's election. The Government's original package had restricted eligibility for Pip, the main disability payment in England, as well as cutting the health-related element of universal credit. Existing recipients were to be given a 13-week phase-out period of financial support in an earlier move that was seen as a bid to head off opposition. Now, the changes to Pip will be implemented in November 2026 and apply to new claimants only, while all existing recipients of the health element of universal credit will have their incomes protected in real terms. The concessions on Pip alone protect some 370,000 people currently receiving the allowance who were set to lose out following reassessment.
Yahoo
13 hours ago
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What benefit claimants need to know about Labour's welfare U-turn
Labour ministers have announced two major changes to their controversial welfare reforms amid intense criticism over the measures. Over 120 Labour MPs were threatening to rebel against the government over its 'Universal Credit and Personal Independence Payment Bill' which is still set to be voted on by members on Tuesday. Writing to Labour MPs on Thursday evening, work and pensions secretary Liz Kendall said: 'These important reforms are rooted in Labour values, and we want to get them right.' 'We have listened to colleagues who support the principle of reform but are worried about the impact of the pace of change on those already supported by the system.' The piece of legislation will still bring in the two key changes to Universal Credit and the Personal Independence Payment (PIP). However, tweaks have been made to ensure that existing claimants have greater protections than first promised. Here's everything you need to know: The central cost-cutting measure remains a tightening of the eligibility to be awarded PIP. Currently claimed by 3.7 million people, the benefit is designed to help with extra costs related to health or disability. Under the changes, around 1.5 million of the current claimants would not be found eligible for the 'daily living' side of the benefit. This is because, while they scored the eight points needed at assessment to be awarded at least the lowest payment rate, they did not score four in any single category. Initially, Labour had pledged to give transitional protection to any claimant who was reassessed and found ineligible for the benefit because of the changes. This meant they were guaranteed the same payment rate for 13 weeks. Ms Kendall has now confirmed that all existing claimants will not be subject to the new criteria. While they will still be subject to reassessment – happening every three years on average – they will not have the requirement to score four points in a single category. This means it is advisable for anyone who thinks they might be eligible for PIP to apply for it as soon as possible. And at least before November 2026 when the changes would come in to effect. This can be done on This means that around 370,000 claimants are expected to have an average £4,500 protected, research from the Resolution Foundation finds. The other key change in the bill sees the rates of Universal Credit changed, with the standard rate rising while the health-related rate is cut back. The plans would bring in an across-the-board increase to the standard Universal Credit allowance for new and existing claims from April 2026. This will be a boost of £7 a week, to £106. But at the same time, the payment rate for the health-related element of Universal Credit was due to be frozen at £105 a week until 2029/30. However, Ms Kendall has confirmed that the income of existing claimants will be protected in real-time, meaning it should at least rise with inflation. This will also apply to any new claimant meeting the severe conditions criteria. The Resolution Foundation estimates that this will 'insulate 2.25 million people from a loss of between £250 and £500 per year.' However, the government has not made any concession on its plan to cut the Universal Credit health element for new claimants to £54 a week – a rate of almost half. Charities and campaigners have criticised the government's concessions over the bill as threatening to create a 'two-tier' system. This is because those currently claiming PIP and Universal Credit health will benefit from more generous rules and rate than new applicants after the changes come into effect. Responding to the concessions, Charles Gillies, senior policy officer at the MS Society and policy co-chair of the Disability Benefits Consortium, said: 'These supposed 'concessions' to the cuts bill are just a desperate attempt to rush through a disastrous piece of legislation. 'By pushing the cuts onto future claimants, the government are betraying the next generation of disabled people. Why should someone who needs support to wash in 2025 be entitled to PIP, but not someone who has the same needs in 2035?'
