Latest news with #benefitCuts
The Independent
09-07-2025
- Business
- The Independent
Government sees off backbench rebellion as welfare reforms clear Commons
A proposed benefit cut for future out-of-work claimants has cleared the Commons after Labour ministers saw off a backbench rebellion. The Universal Credit Bill cleared the Commons at third reading, after it received MPs' backing by 336 votes to 242, majority 94. 'If you can work, you should,' social security minister Sir Stephen Timms told MPs before they voted on the welfare reforms. 'If you need help into work, the Government should provide it, and those who can't work must be able to live with dignity. 'Those are the principles underpinning what we're doing.' Work and pensions ministers faced calls to walk away from their universal credit (UC) proposals at the 11th hour, after they shelved plans to reform the separate personal independence payment (Pip) benefit and vowed to only bring in changes following a review. 'When this Bill started its life, the Government was advocating for cuts to Pip claimants and UC health claimants now and in the future. They conceded that now wasn't right, and it was only the future,' Labour MP for Hartlepool Jonathan Brash said. 'Then they conceded it shouldn't be Pip claimants in the future, leaving only UC health claimants in the future. Does (Sir Stephen) understand the anxiety and confusion this has caused people in the disabled community, and would it not be better to pause and wait for the review and do it properly?' Sir Stephen replied: 'No, because reform is urgently needed. We were elected to deliver change and that is what we must do. 'And it's particularly scandalous that the system gives up on young people in such enormous numbers – nearly a million not in employment, education or training.' The minister said the Government wanted to 'get on and tackle the disability employment gap' and added the Bill 'addresses the severe work disincentives in universal credit, it protects those we don't ever expect to work from universal credit reassessment'. As part of the Bill, the basic universal credit standard allowance will rise at least in line with inflation until 2029/30. But the Government has proposed freezing the 'limited capability for work' (LCW) part of the benefit until 2030, which a group of 37 Labour rebels including Mr Brash opposed in a vote. The move was ultimately approved by 335 votes to 135, majority 200. New claimants who sign up for the 'limited capability for work and work-related activity' payment would receive a lower rate than existing claimants after April 2026, unless they meet a set of severe conditions criteria or are terminally ill, which the same rebels also opposed. Rachael Maskell, the Labour MP for York Central who was among them, had earlier said: 'No matter what spin, to pass the Bill tonight, this will leave such a stain on our great party, founded on values of equality and justice.' She warned that making changes to universal credit before a wider look at reform was putting 'the cart before the horse, the vote before the review', and branded the Government's decision-making an 'omnishambles'. Ms Maskell pressed her own amendment to a division, which she lost by 334 votes to 149, majority 185. It would have demanded that out-of-work benefit claimants with a 'fluctuating medical condition' who slip out of and then back into their eligibility criteria either side of the changes would receive their existing – not the lower – rate. Marie Tidball said that during the review of Pip, which Sir Stephen was tasked with leading, 'the voices of disabled people must be front and centre'. She proposed putting a series of legal conditions on the so-called Timms review, including that disabled people should be actively involved in the process. The Labour MP for Penistone and Stocksbridge did not move her amendment to a vote, on the basis Sir Stephen could offer 'further assurances that there will be sufficient link between the Timms review recommendations and subsequent legislation on Pip to ensure accountability and that the voices of disabled people are heard'. The minister said he could give her that assurance, and added that 'the outcome of the review will be central to the legislation that follows'. A total 47 Labour MPs voted against the Bill at third reading including Mr Brash, Ms Maskell, Mother of the House and Hackney North and Stoke Newington MP Diane Abbott, and former minister Dawn Butler. The Bill will undergo further scrutiny in the Lords at a later date.
Yahoo
09-07-2025
- Business
- Yahoo
Government sees off backbench rebellion as welfare reforms clear Commons
A proposed benefit cut for future out-of-work claimants has cleared the Commons after Labour ministers saw off a backbench rebellion. The Universal Credit Bill cleared the Commons at third reading, after it received MPs' backing by 336 votes to 242, majority 94. 'If you can work, you should,' social security minister Sir Stephen Timms told MPs before they voted on the welfare reforms. 'If you need help into work, the Government should provide it, and those who can't work must be able to live with dignity. 'Those are the principles underpinning what we're doing.' Work and pensions ministers faced calls to walk away from their universal credit (UC) proposals at the 11th hour, after they shelved plans to reform the separate personal independence payment (Pip) benefit and vowed to only bring in changes following a review. 'When this Bill started its life, the Government was advocating for cuts to Pip claimants and UC health claimants now and in the future. They conceded that now wasn't right, and it was only the future,' Labour MP for Hartlepool Jonathan Brash said. 'Then they conceded it shouldn't be Pip claimants in the future, leaving only UC health claimants in the future. Does (Sir Stephen) understand the anxiety and confusion this has caused people in the disabled community, and would it not be better to pause and wait for the review and do it properly?' Sir Stephen replied: 'No, because reform is urgently needed. We were elected to deliver change and that is what we must do. 'And it's particularly scandalous that the system gives up on young people in such enormous numbers – nearly a million not in employment, education or training.' The minister said the Government wanted to 'get on and tackle the disability employment gap' and added the Bill 'addresses the severe work disincentives in universal credit, it protects those we don't ever expect to work from universal credit reassessment'. As part of the Bill, the basic universal credit standard allowance will rise at least in line with inflation until 2029/30. But the Government has proposed freezing the 'limited capability for work' (LCW) part of the benefit until 2030, which a group of 37 Labour rebels including Mr Brash opposed in a vote. The move was ultimately approved by 335 votes to 135, majority 200. New claimants who sign up for the 'limited capability for work and work-related activity' payment would receive a lower rate than existing claimants after April 2026, unless they meet a set of severe conditions criteria or are terminally ill, which the same rebels also opposed. Rachael Maskell, the Labour MP for York Central who was among them, had earlier said: 'No matter what spin, to pass the Bill tonight, this will leave such a stain on our great party, founded on values of equality and justice.' She warned that making changes to universal credit before a wider look at reform was putting 'the cart before the horse, the vote before the review', and branded the Government's decision-making an 'omnishambles'. Ms Maskell pressed her own amendment to a division, which she lost by 334 votes to 149, majority 185. It would have demanded that out-of-work benefit claimants with a 'fluctuating medical condition' who slip out of and then back into their eligibility criteria either side of the changes would receive their existing – not the lower – rate. Marie Tidball said that during the review of Pip, which Sir Stephen was tasked with leading, 'the voices of disabled people must be front and centre'. She proposed putting a series of legal conditions on the so-called Timms review, including that disabled people should be actively involved in the process. The Labour MP for Penistone and Stocksbridge did not move her amendment to a vote, on the basis Sir Stephen could offer 'further assurances that there will be sufficient link between the Timms review recommendations and subsequent legislation on Pip to ensure accountability and that the voices of disabled people are heard'. The minister said he could give her that assurance, and added that 'the outcome of the review will be central to the legislation that follows'. A total 47 Labour MPs voted against the Bill at third reading including Mr Brash, Ms Maskell, Mother of the House and Hackney North and Stoke Newington MP Diane Abbott, and former minister Dawn Butler. The Bill will undergo further scrutiny in the Lords at a later date.
The Independent
06-07-2025
- Politics
- The Independent
Starmer's approval ratings at lowest level since becoming PM after welfare chaos
Sir Keir Starmer 's approval rating has hit an all time low, with voters blaming him for the chaotic £5bn U-turn on his benefit cuts. The prime minister 's support among the public reached fresh depths after the climbdown and in the wake of Rachel Reeves being seen crying in the Commons, a new poll shows. Conducted in the hours after Wednesday's PMQs, the More in Common survey found Sir Keir's approval rating at -43. The poll, first reported by The Sunday Times, also found that just a year after coming to power, seven in 10 voters think Sir Keir's government is at least as chaotic as the Tories' previous term. That includes one in three voters, who believe it is more so. More in Common's UK director Luke Tryl said: 'It is an unhappy birthday for the prime minister, his personal approval has hit an all time low, while Britons blame him rather than his chancellor for the welfare mess and think he has lost control of his party.' Mr Tryl said the 'big winner' from the government's failings is Reform UK. 'Although we are a long way from an election and much will change, Nigel Farage 's Party are demonstrating that they are now close to the level where they could command an outright majority. Britain's political landscape has transformed entirely from just a year ago,' Mr Tryl said. More in Common's poll found that Reform would emerge as the biggest party if an election were held tomorrow, winning 290 seats. Labour 's vote would collapse, falling from having won 412 seats last July to just 126. And the Conservatives would win just 81 seats, 40 fewer than at the last general election. More in Common's MRP, often dubbed a mega poll, showed that a majority of cabinet ministers would lose their seats as things stand. Those whose seats are vulnerable include Angela Rayner, Reeves, Pat McFadden, Yvette Cooper, Wes Streeting, Bridget Phillipson, Ed Miliband and more. The main reason voters gave for turning away from Labour was broken promises and U-turns on previous commitments, More in Common said. More than a third said they were turning away from Labour due to the ongoing cost of living crisis, while more than a quarter said they had been put off Labour by the party's cuts to winter fuel payments. Labour has been haemorrhaging support to Mr Farage's party, with Reform surging in May's local elections, taking control of 10 councils and winning the Runcorn by-election. The poll came after Sir Keir's chancellor was warned she must raise taxes or put Labour's agenda at risk. Jim O'Neill, a former Goldman Sachs chief turned Treasury minister who quit the Conservatives and later advised Reeves, said she faces no choice but to abandon key parts of her economic policy – including her commitment not to raise income tax, national insurance contributions for employees or VAT. 'Without changing some of the big taxes, welfare and pensions, they [Labour] can't commit to things like Northern Powerhouse Rail, small modular nuclear reactors, and various other things that will make an investment and growth difference,' he told The Independent.
The Independent
01-07-2025
- Business
- The Independent
Rattled Starmer scrapes through on welfare reform after last-minute concession to rebel MPs
Sir Keir Starmer has suffered the biggest blow to his leadership since coming into power a year ago after he was forced to abandon a key plank of his controversial benefit cuts in order to get them through parliament. While his welfare reform bill passed its second reading by 335 votes to 260 – a majority of 75 – the prime minister still suffered the largest rebellion of his premiership so far, with 49 Labour MPs voting to reject the legislation. It came after a last-ditch announcement that plans to restrict eligibility for personal independence payments (Pip) - which had been the central pillar of the government's reforms - were being dropped. The chaotic move came just 90 minutes before MPs were due to vote for on the Universal Credit and Personal Independence Payment Bill for the first time, when disability minister Sir Stephen Timms announced that changes to Pip originally planned for November 2026 will not take place until after his review of the benefit has concluded. Sir Keir had already been forced into a U-turn last week when more than 130 Labour MPs signed an amendment that would have effectively killed the bill off. Among the concessions announced then was a plan to impose tougher eligibility rules only on future Pip claimants, leaving existing recipients unaffected. Critics said this would create to a two tier system, while the government's own impact assessment said the change would push 150,000 people into poverty. The latest climbdown will cause a major headache for chancellor Rachel Reeves; the welfare squeeze was intended to save £4.8 billion a year, already watered down to £2.3 billion last week. Postponing any changes to Pip means it is now uncertain how much the reforms will save. Last night the the Institute for Fiscal Studies (IFS) warned that the reforms package could even end up costing the taxpayer £100m by in 2029/30 if proposals to tighten eligibility for Pip are scrapped following the Timms review. The vote followed a tense debate in which numerous Labour MPs criticised the plans and many more demanded they be postponed. Paula Barker, Labour MP for Liverpool Wavertree, said: "Whilst grateful for the concessions, this has further laid bare the incoherent and shambolic nature of this process. It is the most unedifying spectacle that I have ever seen." Meanwhile, Ian Lavery said the bill 'isn't fit for purpose'. "I've never once seen a massive commitment given in a Bill like the minister gave in an intervention to a contribution. This is crazy, man. This is outrageous, man. This bill isn't fit for purpose', he said. Opening the debate, work and pensions secretary Liz Kendall said: 'I do not believe that this is sustainable if we want a welfare state that protects people who most need our help for generations to come.' She added: "There is no responsibility in leaving our system of social security to continue as it is, and risk support for it becoming so frayed that it is no longer there to provide a safety net for those who can never work, and who most need our help and support." But she was met with immediate opposition from an amendment laid by Labour backbencher Rachael Maskell which would have killed the bill. She described society as "dystopian", adding that the government should introduce a wealth tax rather than cutting benefits. Ms Maskell's wrecking amendment was ultimately voted down - but was backed by 42 Labour MPs, highlighting the scale of consternation within Sir Keir's party. Emma Lewell, one of 36 signatories of Ms Maskell's reasoned amendment, told the Commons: "I am sad that we have ended up here because no matter what, regardless of concessions, a vote for this Bill today is a vote to plunge 150,000 people into poverty and to tighten eligibility criteria for those who need support the most." She added: "We are once again making disabled people pay the price for the economic mess that the party opposite left us. As it stands, we are being asked to vote blind today.' Among many Labour MPs who stood up to criticise the plans was a highly emotional contribution by Dr Marie Tidball, a disabled MP. Holding back tears, she said: "[During the Tory austerity years] I vowed then that I would do all I could to create a country which treats disabled people with dignity and respect. "With a heavy, broken heart that I will be voting against the bill today. As a matter of conscience I need my constituents to know I cannot support the changes as currently drafted on the front of the bill." The vote means that the legislation now goes to the next stages in parliament but leaves the possibility of another major rebellion for its third and final reading after the summer. The government announced the plans earlier this year but disability groups have criticised it for failing to consult, especially over plans to make it more difficult to receive personal independence payments (Pips). Tory leader Kemi Badenoch sought to capitalise on Sir Keir's discomfort, accusing ministers of 'utter capitulation' and saying the legislation was now 'pointless'. 'They should bin it, do their homework, and come back with something serious. Starmer cannot govern', she said.
Daily Mail
01-07-2025
- Business
- Daily Mail
JASON GROVES analysis: After describing welfare reform as a 'moral imperative', Sir Keir has all but abandoned it...
Days after describing welfare reform as a 'moral imperative', Sir Keir Starmer has all but abandoned it. A partial U-turn on benefit cuts last week became a total capitulation on Tuesday night, as Labour whips warned Downing Street that backbench MPs were poised to inflict a humiliating Commons defeat on the eve of the Prime Minister's first anniversary in office. No 10 believed it had done enough last Thursday when it agreed to exempt all those currently on disability from planned cuts and focus solely on new claimants. The huge concession would have halved the estimated £5 billion savings, but ministers consoled themselves that at least the principle of reform would be salvaged. Work and pensions secretary Liz Kendall faced mocking laughter from opposition MPs at 2pm on Tuesday when she insisted there would be no further concessions and declared the government 'must not and will not duck the big challenges facing this country'. As the afternoon wore on, and a seemingly endless stream of Labour MPs stood up to denounce the 'Dickensian' package of cuts, rumours began to circulate that No 10 was preparing to make further concessions to avoid a humiliating defeat. Behind the scenes, Angela Rayner and other senior ministers were ringing round rebels trying to change their minds – to no avail. At 5.30pm, Ms Kendall's deputy Stephen Timms announced that the government was scrapping the disability benefit cuts at the heart of the legislation pending a review which will be 'co-produced' with disability charities and will not report for 18 months. Social Security Minister Sir Stephen Timms confirmed in the Commons that the remaining changes, due to be introduced in November, would now not come in before a review was completed in the autumn of 2026 Liz Kendall faced mocking laughter from opposition MPs when she insisted there would be no further concessions and declared the government 'must not and will not duck the big challenges facing this country' Legislation once designed to save £5 billion will now save nothing at all. In fact, it is likely to end up costing money to fund a £1 billion back to work scheme conceded to rebel MPs. Mr Timms said that a review of disability benefits, which is all that is left of Labour's reform programme is 'not designed to save money'. Some Labour rebels were so incensed by the shambolic and 'disrespectful' handling of the so-called reforms that they declared they would vote to give the PM a bloody nose anyway. As Tory spokesman Helen Whately observed, the episode suggested the PM 'can't even deliver a U-turn'. The climbdown raises serious questions about the PM's ability to lead his own MPs on anything outside their comfort zone. He misjudged their mood initially, failed to heed warnings from the whips for weeks and miscalculated concessions designed to head off a revolt. It also raises Labour's ability to ever reform a welfare system which the PM - and just about everyone else – believes is 'broken', with spending on sickness benefits in line to top £100 billion by the end of the decade. Sir Keir started the day by congratulating his Cabinet and telling them they could look back on their first year 'with a real sense of pride and achievement' after taking a series of 'tough choices'. By the end of the day he had abandoned his toughest choice – and raised doubts about whether he will ever be able to push through a genuinely difficult choice again.
