Latest news with #PIP
Scottish Sun
7 hours ago
- Business
- Scottish Sun
Labour rebels who forced Keir Starmer into a U-turn set to demand axe to two-child benefit cap
The reforms are expected to pass next Tuesday 'dog's dinner' Labour rebels who forced Keir Starmer into a U-turn set to demand axe to two-child benefit cap Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) LABOUR rebels who forced Sir Keir Starmer into a U-turn are to demand the two-child benefit cap is axed. The PM faces the fresh test after watering down a £5billion savings package amid backbench unrest. Sign up for the Politics newsletter Sign up 1 126 Labour MPs threatened to scupper the moves Credit: PA People down south currently receiving Personal Independence Payment and Universal Credit will continue to get them, with the cuts only hitting new claimants. The Labour Government made the concession after 126 Labour MPs threatened to scupper the moves. The reforms are expected to pass next Tuesday but experts warned tax rises may be needed to afford them. And it emerged Labour rebels now have the two-child cap in their sights. It follows an earlier climbdown on winter fuel payments. The PIP changes don't affect Scots as it has been replaced here by the Adult Disability Payment. But Nats ministers could be boosted by extra cash freed up by the U-turn — as the SNP pushes ahead with £150million plans to scrap the two-child cap in Scotland. Nats MP Kirsty Blackman accused Labour of creating 'a dog's dinner of a system' down south that punishes the young and newly disabled. She said: 'If these cuts go ahead, they'll embed discrimination, creating an unfair two-tier system. The SNP Scottish Government is clear it won't follow these discriminatory, two-tier disability cuts.' Labour peer Lord Hutton accused Sir Keir of putting 'party before country' by caving in to rebels'. Keir Starmer 'to BACK DOWN' on benefits cuts as he faces major revolt from MPs But Pensions Secretary Liz Kendall downplayed Labour splits, insisting: 'We have listened to people.' No10 claimed there would be no 'permanent' increase in borrowing as a result of the U-turn but declined to rule out tax rises to fund it.
Sky News
8 hours ago
- Business
- Sky News
This has been Starmer's most damaging U-turn yet - but the bigger cost is the political one
Why you can trust Sky News 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. Some MPs, like Diane Abbott 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 chancellor hoped to save from the welfare reforms. The prime minister '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's 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. More than 120 MPs, nearly a third of the parliamentary Labour 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
9 hours ago
- Business
- 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.
Sky News
9 hours ago
- Business
- Sky News
This week will haunt the prime minister after his most damaging U-turn yet
Why you can trust Sky News 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. Some MPs, like Diane Abbott 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 chancellor hoped to save from the welfare reforms. The prime minister '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. More than 120 MPs, nearly a third of the parliamentary Labour 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
9 hours ago
- Business
- Yahoo
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?'
