Latest news with #RuthCurtice
North Wales Chronicle
3 days ago
- Business
- North Wales Chronicle
Starmer ditches Pip benefit reforms in face of Labour revolt
In a late climbdown as MPs prepared to vote, the Government shelved plans to restrict eligibility for the personal independence payment (Pip), with any changes now only coming after a review of the benefit. 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'.
South Wales Guardian
3 days ago
- Business
- South Wales Guardian
Starmer ditches Pip benefit reforms in face of Labour revolt
In a late climbdown as MPs prepared to vote, the Government shelved plans to restrict eligibility for the personal independence payment (Pip), with any changes now only coming after a review of the benefit. 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'.
Rhyl Journal
3 days ago
- Business
- Rhyl Journal
Starmer ditches Pip benefit reforms in face of Labour revolt
In a late climbdown as MPs prepared to vote, the Government shelved plans to restrict eligibility for the personal independence payment (Pip), with any changes now only coming after a review of the benefit. 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'.
Evening Standard
12-06-2025
- Health
- Evening Standard
The UK is turning into a 'National Health State', experts say after Rachel Reeves' spending review
Ruth Curtice, the foundation's chief executive, said: "Health accounted for 90% of the extra public service spending, continuing a trend that is seeing the British state morph into a National Health State, with half of public service spending set to be on health by the end of the decade."
North Wales Chronicle
22-05-2025
- Business
- North Wales Chronicle
Winter fuel payment changes that could help more pensioners
But he has not set out how the change to who is entitled to the payments worth up to £300 will look. The means-testing of pensioners' winter fuel payments is an issue which has been blamed for contributing to Labour's poor performance in May's local elections and the Runcorn and Helsby by-election. There are several options for how the Government could go about it. One option would be a full reversal of the decision to strip the benefit from millions of pensioners. The decision to make it available only to those who claim pension credit last year meant those claiming winter fuel payment fell by almost 90% and saved around £1.5 billion a year, the Institute for Fiscal Studies estimates. Undoing last year's policy change would make some 11 million more households eligible and of course wipe out the £1.5 billion in savings. Creating a new threshold and means test would allow households not on pension credit to apply directly for winter fuel payments. Raising it 20% above the pension credit threshold would cost around £100 million and see winter fuel payments go to around 400,000 more families, according to the Resolution Foundation. One option would be to model this on child benefit by allowing all pensioner households to claim but then require those above a certain income level to pay some back via a self assessment tax return, the IFS notes. But there is a risk to adopting 'a clunky bureaucratic mechanism for what is, ultimately, a relatively small payment', IFS associate director Tom Waters warned. Very pleased to just hear the Prime Minister has just said he wants more state pensioners to get Winter Fuel Payments (WFP) and they will work out what they're doing in time for the budget. As I've said since day one, there are two main problems with the way the means testing… Some 1.8 million more households could get winter fuel payment at a cost of around £500 million per year if entitlement is extended to those on disability benefits, the IFS estimates. This would be more complicated to put in place in Scotland, where disability benefit is devolved. Extending eligibility to include those on housing and disability benefits would give support to 1.3 million more pensioner families at a cost of £300 million a year, the Resolution Foundation estimates. This would be an 'affordable' and 'sensible way forward', chief executive Ruth Curtice said. Recommended reading: One difficulty in allocating the winter fuel payment is that it currently goes to households rather than individuals. Changing this would mean the Government could do a means test on an individual basis and use information that it already records for income tax purposes. It would see pensioners with a low income but with a high-income spouse get the winter fuel payment. However, it could also see couples get twice as much winter fuel payment as single people, where at the moment a single person would get the same amount as a couple sharing a household.
