Latest news with #Pensions
Powys County Times
4 days ago
- Business
- Powys County Times
Welfare reforms strike ‘right balance' after U-turn, says Starmer
Sir Keir Starmer has said his welfare reforms now strike 'the right balance' after he U-turned in the face of a major backbench rebellion. Speaking for the first time after Downing Street agreed a series of concessions on its welfare policy, the Prime Minister said the climbdown followed a 'constructive discussion' with Labour rebels. He told broadcasters on Friday: '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. '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.' Earlier, Work and Pensions Secretary Liz Kendall said the party was in 'a good place' on welfare reform, after offering concessions to rebels late on Thursday. Some 126 Labour MPs had signed an amendment that would halt the Universal Credit and Personal Independence Payment Bill in its tracks when it faces its first Commons hurdle on Tuesday. Leading rebels now believe the concessions on offer, which include protecting personal independence payments (Pip) for all existing claimants, will be enough to win over a majority. However, the fallout threatens to cause lasting damage, as harder line rebels remain opposed to the legislation and some backbenchers have called for a reset of relations between Number 10 and the parliamentary party. But the reversal means Chancellor Rachel Reeves now faces a scramble to fill a potential hole in her budget this autumn, with the cuts now likely to save much less than the £4.8 billion the Government had expected. Economists at the Institute for Fiscal Studies and the Resolution Foundation have both suggested the changes could reduce that figure by up to £3 billion. But Downing Street has so far declined to set out its own figures for how much it now expects to save, or to say how the shortfall will be covered beyond insisting there would be no 'permanent' increase in borrowing and refusing to rule out tax rises. Facing questions about the climbdown on Friday, Ms Kendall denied suggestions she had found it 'difficult' to water down reforms she had so strenuously defended and said the concessions left the Bill in 'the right place'. 'We have listened to people, we have engaged with them,' she said. 'I think we're in a good place now, alongside the huge investments we are putting in to create the jobs that people need in every part of the country… but also to make sure there's employment support for those who can work and protections for those who can't.' The Government has also left the door open to further reform down the line, with Ms Kendall saying there need to be 'changes in the future' to ensure 'people who can work do'. 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. The changes represent a major climbdown for the Prime Minister, just days after he insisted to reporters he would 'press on' with the cuts, arguing there was a 'moral case' for them. Dame Meg Hillier, one of the leading rebel voices, hailed the concessions as 'a good deal' involving 'massive changes' to protect vulnerable people and involve disabled people in the design of future reforms. She said: 'It's encouraging that we have reached what I believe is a workable compromise that will protect disabled people and support people back into work while ensuring the welfare system can be meaningfully reformed.' But not all the rebels have been satisfied with the changes, with several suggesting they would create a 'two-tier system' and raising questions about who would be classified as a new claimant after November 2026. One told the PA news agency that discontent and low morale among the backbenches would 'continue to fester' without a 'wider reset' of relations between Number 10 and the Parliamentary Labour Party. Another accused decision-makers in Government of operating as an 'exclusive club' and showing 'disregard' for both its MPs and experts outside Westminster, while some claimed Dame Meg had failed to include other backbenchers in her negotiations. Conservative leader Kemi Badenoch criticised the U-turn, saying the Government's failure to make 'minor savings' on welfare showed they were unable to deal with major issues. Liberal Democrat work and pensions spokesman Steve Darling said his party would continue opposing the Bill, saying the proposed cuts would still 'cause immense damage to some of the most vulnerable'. There was mixed reaction among charities to the prospect of concessions. Learning disability charity Mencap said the news would be a 'huge relief to thousands of people living in fear of what the future holds'. But the MS Society urged rebels to hold firm and block the Bill, insisting any Government offer to water down the reforms would amount to 'kicking the can down the road and delaying an inevitable disaster'.
The Herald Scotland
4 days ago
- Business
- The Herald Scotland
Welfare reforms strike ‘right balance' after U-turn, says Starmer
He told broadcasters on Friday: '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. '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.' Earlier, Work and Pensions Secretary Liz Kendall said the party was in 'a good place' on welfare reform, after offering concessions to rebels late on Thursday. Some 126 Labour MPs had signed an amendment that would halt the Universal Credit and Personal Independence Payment Bill in its tracks when it faces its first Commons hurdle on Tuesday. Leading rebels now believe the concessions on offer, which include protecting personal independence payments (Pip) for all existing claimants, will be enough to win over a majority. However, the fallout threatens to cause lasting damage, as harder line rebels remain opposed to the legislation and some backbenchers have called for a reset of relations between Number 10 and the parliamentary party. But the reversal means Chancellor Rachel Reeves now faces a scramble to fill a potential hole in her budget this autumn, with the cuts now likely to save much less than the £4.8 billion the Government had expected. Economists at the Institute for Fiscal Studies and the Resolution Foundation have both suggested the changes could reduce that figure by up to £3 billion. But Downing Street has so far declined to set out its own figures for how much it now expects to save, or to say how the shortfall will be covered beyond insisting there would be no 'permanent' increase in borrowing and refusing to rule out tax rises. Facing questions about the climbdown on Friday, Ms Kendall denied suggestions she had found it 'difficult' to water down reforms she had so strenuously defended and said the concessions left the Bill in 'the right place'. 'We have listened to people, we have engaged with them,' she said. 'I think we're in a good place now, alongside the huge investments we are putting in to create the jobs that people need in every part of the country… but also to make sure there's employment support for those who can work and protections for those who can't.' The Government has also left the door open to further reform down the line, with Ms Kendall saying there need to be 'changes in the future' to ensure 'people who can work do'. 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. The changes represent a major climbdown for the Prime Minister, just days after he insisted to reporters he would 'press on' with the cuts, arguing there was a 'moral case' for them. Dame Meg Hillier, one of the leading rebel voices, hailed the concessions as 'a good deal' involving 'massive changes' to protect vulnerable people and involve disabled people in the design of future reforms. She said: 'It's encouraging that we have reached what I believe is a workable compromise that will protect disabled people and support people back into work while ensuring the welfare system can be meaningfully reformed.' But not all the rebels have been satisfied with the changes, with several suggesting they would create a 'two-tier system' and raising questions about who would be classified as a new claimant after November 2026. One told the PA news agency that discontent and low morale among the backbenches would 'continue to fester' without a 'wider reset' of relations between Number 10 and the Parliamentary Labour Party. Another accused decision-makers in Government of operating as an 'exclusive club' and showing 'disregard' for both its MPs and experts outside Westminster, while some claimed Dame Meg had failed to include other backbenchers in her negotiations. Conservative leader Kemi Badenoch criticised the U-turn, saying the Government's failure to make 'minor savings' on welfare showed they were unable to deal with major issues. Liberal Democrat work and pensions spokesman Steve Darling said his party would continue opposing the Bill, saying the proposed cuts would still 'cause immense damage to some of the most vulnerable'. There was mixed reaction among charities to the prospect of concessions. Learning disability charity Mencap said the news would be a 'huge relief to thousands of people living in fear of what the future holds'. But the MS Society urged rebels to hold firm and block the Bill, insisting any Government offer to water down the reforms would amount to 'kicking the can down the road and delaying an inevitable disaster'.
South Wales Argus
4 days ago
- Health
- South Wales Argus
Welfare reforms: What concessions has the Government made?
Here, the PA news agency takes a look at what the changes are and how Labour MPs and disability groups have reacted. – What had the Government originally planned? The Government said its reforms are aimed at getting more people into work (Philip Toscano/PA) In March, reforms to the welfare system – aimed at encouraging more people off sickness benefits and into work – were announced. The Government said the changes, including restricting access to the main disability benefit known as Pip (personal independence payment) and the sickness-related element of universal credit (UC), were expected to make welfare savings of £4.8 billion by 2029-30. With around 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year', the Government argued the current situation was unsustainable. An impact assessment published alongside the Bill included estimates that changes to Pip entitlement rules would see about 800,000 people lose out, with an average loss of £4,500 per year. Changes to UC were expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year. Overall, as a result of the changes, it was estimated some 250,000 more people, including 50,000 children, across Great Britain were likely to fall into relative poverty after housing costs by the end of the decade. – What concessions have been made? Work and Pensions Secretary Liz Kendall has written to MPs outlining changes to the Bill (Jacob King/PA) In a late-night letter to MPs, Work and Pensions Secretary Liz Kendall conceded two changes she said would 'strengthen the Bill'. In recognition of the 'uncertainty and anxiety' caused by the proposed changes, she said all current Pip recipients would keep their benefits, saying only new claims from November 2026 will come under the tightened eligibility requirements. An impact assessment had stated that 370,000 current recipients were set to lose Pip entitlement across England and Wales. Ms Kendall also vowed all those currently receiving the UC health element, as well as new claimants meeting the severe conditions criteria, will have their incomes 'fully protected in real terms'. The Work and Pensions Secretary has also promised a review of the Pip assessment, led by social security and disability minister Sir Stephen Timms, which will have input from disabled people 'to ensure the benefit is fair and fit for the future'. – What are disability groups saying? While some disability groups have welcomed the changes, others said they do not go far enough (Alamy/PA) Mikey Erhardt, from Disability Rights UK, accused the Government of 'playing politics with our lives', insisting the Bill must still be pulled. He said the changes will mean 'a benefits system where future generations of disabled people receive less support than disabled people today' and added that, in making the original announcement of cuts, the Government had 'prioritised balancing its books over improving the lives of disabled citizens'. Mr Erhardt added: 'Despite seemingly rowing back on some of the worst aspects of its plans, the Government is still attempting to slash billions of pounds from a system that doesn't provide enough support as it stands.' The MS Society said the Government was simply 'kicking the can down the road and delaying an inevitable disaster', and urged MPs 'not to be swayed by these last-ditch attempts to force through a harmful Bill with supposed concessions'. Food bank network Trussell welcomed the 'significant' concessions but said the proposals 'still present a bleak future for future claimants and still risk placing the Government's commitments to end the need for emergency food and tackle poverty in serious jeopardy'. – What are Labour MPs saying? Dame Meg Hillier was one of the leading voices of opposition to the cuts (House of Commons/UK Parliament/PA) Dame Meg Hillier, one of the leading rebel voices, described the concessions as 'a good deal' involving 'massive changes' to protect vulnerable people and involve disabled people in the design of future reforms. She said: 'It's encouraging that we have reached what I believe is a workable compromise that will protect disabled people and support people back into work while ensuring the welfare system can be meaningfully reformed.' Health minister Stephen Kinnock said he is confident the welfare reforms – being brought under the Universal Credit and Personal Independence Payment Bill – will pass a vote in the Commons on Tuesday in the wake of the concessions. But some Labour MPs are still not satisfied, with Nadia Whittome saying the concessions are 'nowhere near good enough', vowing to still vote against the Bill unless 'serious' proposals are made to 'protect the dignity of disabled people'. Speaking to the Today programme on BBC Radio 4, she said MPs she had spoken to 'are sticking to their position because we understand that we are answerable to our constituents'. Ms Whittome added: 'If the Government doesn't pull the Bill, doesn't consult properly with disabled people and come back to MPs with a serious proposal that protects the dignity of disabled people, I will vote against and I will be far from the only one.'
Glasgow Times
4 days ago
- Health
- Glasgow Times
Welfare reforms: What concessions has the Government made?
Here, the PA news agency takes a look at what the changes are and how Labour MPs and disability groups have reacted. – What had the Government originally planned? The Government said its reforms are aimed at getting more people into work (Philip Toscano/PA) In March, reforms to the welfare system – aimed at encouraging more people off sickness benefits and into work – were announced. The Government said the changes, including restricting access to the main disability benefit known as Pip (personal independence payment) and the sickness-related element of universal credit (UC), were expected to make welfare savings of £4.8 billion by 2029-30. With around 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year', the Government argued the current situation was unsustainable. An impact assessment published alongside the Bill included estimates that changes to Pip entitlement rules would see about 800,000 people lose out, with an average loss of £4,500 per year. Changes to UC were expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year. Overall, as a result of the changes, it was estimated some 250,000 more people, including 50,000 children, across Great Britain were likely to fall into relative poverty after housing costs by the end of the decade. – What concessions have been made? Work and Pensions Secretary Liz Kendall has written to MPs outlining changes to the Bill (Jacob King/PA) In a late-night letter to MPs, Work and Pensions Secretary Liz Kendall conceded two changes she said would 'strengthen the Bill'. In recognition of the 'uncertainty and anxiety' caused by the proposed changes, she said all current Pip recipients would keep their benefits, saying only new claims from November 2026 will come under the tightened eligibility requirements. An impact assessment had stated that 370,000 current recipients were set to lose Pip entitlement across England and Wales. Ms Kendall also vowed all those currently receiving the UC health element, as well as new claimants meeting the severe conditions criteria, will have their incomes 'fully protected in real terms'. The Work and Pensions Secretary has also promised a review of the Pip assessment, led by social security and disability minister Sir Stephen Timms, which will have input from disabled people 'to ensure the benefit is fair and fit for the future'. – What are disability groups saying? While some disability groups have welcomed the changes, others said they do not go far enough (Alamy/PA) Mikey Erhardt, from Disability Rights UK, accused the Government of 'playing politics with our lives', insisting the Bill must still be pulled. He said the changes will mean 'a benefits system where future generations of disabled people receive less support than disabled people today' and added that, in making the original announcement of cuts, the Government had 'prioritised balancing its books over improving the lives of disabled citizens'. Mr Erhardt added: 'Despite seemingly rowing back on some of the worst aspects of its plans, the Government is still attempting to slash billions of pounds from a system that doesn't provide enough support as it stands.' The MS Society said the Government was simply 'kicking the can down the road and delaying an inevitable disaster', and urged MPs 'not to be swayed by these last-ditch attempts to force through a harmful Bill with supposed concessions'. Food bank network Trussell welcomed the 'significant' concessions but said the proposals 'still present a bleak future for future claimants and still risk placing the Government's commitments to end the need for emergency food and tackle poverty in serious jeopardy'. – What are Labour MPs saying? Dame Meg Hillier was one of the leading voices of opposition to the cuts (House of Commons/UK Parliament/PA) Dame Meg Hillier, one of the leading rebel voices, described the concessions as 'a good deal' involving 'massive changes' to protect vulnerable people and involve disabled people in the design of future reforms. She said: 'It's encouraging that we have reached what I believe is a workable compromise that will protect disabled people and support people back into work while ensuring the welfare system can be meaningfully reformed.' Health minister Stephen Kinnock said he is confident the welfare reforms – being brought under the Universal Credit and Personal Independence Payment Bill – will pass a vote in the Commons on Tuesday in the wake of the concessions. But some Labour MPs are still not satisfied, with Nadia Whittome saying the concessions are 'nowhere near good enough', vowing to still vote against the Bill unless 'serious' proposals are made to 'protect the dignity of disabled people'. Speaking to the Today programme on BBC Radio 4, she said MPs she had spoken to 'are sticking to their position because we understand that we are answerable to our constituents'. Ms Whittome added: 'If the Government doesn't pull the Bill, doesn't consult properly with disabled people and come back to MPs with a serious proposal that protects the dignity of disabled people, I will vote against and I will be far from the only one.'
Western Telegraph
4 days ago
- Health
- Western Telegraph
Welfare reforms: What concessions has the Government made?
Here, the PA news agency takes a look at what the changes are and how Labour MPs and disability groups have reacted. – What had the Government originally planned? The Government said its reforms are aimed at getting more people into work (Philip Toscano/PA) In March, reforms to the welfare system – aimed at encouraging more people off sickness benefits and into work – were announced. The Government said the changes, including restricting access to the main disability benefit known as Pip (personal independence payment) and the sickness-related element of universal credit (UC), were expected to make welfare savings of £4.8 billion by 2029-30. With around 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year', the Government argued the current situation was unsustainable. An impact assessment published alongside the Bill included estimates that changes to Pip entitlement rules would see about 800,000 people lose out, with an average loss of £4,500 per year. Changes to UC were expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year. Overall, as a result of the changes, it was estimated some 250,000 more people, including 50,000 children, across Great Britain were likely to fall into relative poverty after housing costs by the end of the decade. – What concessions have been made? Work and Pensions Secretary Liz Kendall has written to MPs outlining changes to the Bill (Jacob King/PA) In a late-night letter to MPs, Work and Pensions Secretary Liz Kendall conceded two changes she said would 'strengthen the Bill'. In recognition of the 'uncertainty and anxiety' caused by the proposed changes, she said all current Pip recipients would keep their benefits, saying only new claims from November 2026 will come under the tightened eligibility requirements. An impact assessment had stated that 370,000 current recipients were set to lose Pip entitlement across England and Wales. Ms Kendall also vowed all those currently receiving the UC health element, as well as new claimants meeting the severe conditions criteria, will have their incomes 'fully protected in real terms'. The Work and Pensions Secretary has also promised a review of the Pip assessment, led by social security and disability minister Sir Stephen Timms, which will have input from disabled people 'to ensure the benefit is fair and fit for the future'. – What are disability groups saying? While some disability groups have welcomed the changes, others said they do not go far enough (Alamy/PA) Mikey Erhardt, from Disability Rights UK, accused the Government of 'playing politics with our lives', insisting the Bill must still be pulled. He said the changes will mean 'a benefits system where future generations of disabled people receive less support than disabled people today' and added that, in making the original announcement of cuts, the Government had 'prioritised balancing its books over improving the lives of disabled citizens'. Mr Erhardt added: 'Despite seemingly rowing back on some of the worst aspects of its plans, the Government is still attempting to slash billions of pounds from a system that doesn't provide enough support as it stands.' The MS Society said the Government was simply 'kicking the can down the road and delaying an inevitable disaster', and urged MPs 'not to be swayed by these last-ditch attempts to force through a harmful Bill with supposed concessions'. Food bank network Trussell welcomed the 'significant' concessions but said the proposals 'still present a bleak future for future claimants and still risk placing the Government's commitments to end the need for emergency food and tackle poverty in serious jeopardy'. – What are Labour MPs saying? Dame Meg Hillier was one of the leading voices of opposition to the cuts (House of Commons/UK Parliament/PA) Dame Meg Hillier, one of the leading rebel voices, described the concessions as 'a good deal' involving 'massive changes' to protect vulnerable people and involve disabled people in the design of future reforms. She said: 'It's encouraging that we have reached what I believe is a workable compromise that will protect disabled people and support people back into work while ensuring the welfare system can be meaningfully reformed.' Health minister Stephen Kinnock said he is confident the welfare reforms – being brought under the Universal Credit and Personal Independence Payment Bill – will pass a vote in the Commons on Tuesday in the wake of the concessions. But some Labour MPs are still not satisfied, with Nadia Whittome saying the concessions are 'nowhere near good enough', vowing to still vote against the Bill unless 'serious' proposals are made to 'protect the dignity of disabled people'. Speaking to the Today programme on BBC Radio 4, she said MPs she had spoken to 'are sticking to their position because we understand that we are answerable to our constituents'. Ms Whittome added: 'If the Government doesn't pull the Bill, doesn't consult properly with disabled people and come back to MPs with a serious proposal that protects the dignity of disabled people, I will vote against and I will be far from the only one.'
