Latest news with #benefits
Daily Mail
44 minutes ago
- Business
- Daily Mail
Critics warn Sir Keir's screeching welfare U-turn will now result in a 'two-tier' benefits system and a £3billion tax bombshell to pay for it
Sir Keir Starmer 's benefits climbdown will create a 'two-tier' benefits system with families facing a £3billion tax bombshell to pay for it, critics warned last night. And that will be on top of the £1.25billion bill caused by the Prime Minister's screeching U-turn over winter fuel payments for pensioners. Experts warned the £4.25billion black hole in the public finances caused by the backsliding will probably force Chancellor Rachel Reeves to plug it with more tax rises in her autumn Budget. The Prime Minister was humiliatingly forced to hand Labour 's welfare rebels the concessions in a bid to avoid defeat in a crunch vote on benefits cuts on Tuesday. The compromise deal last night looked like it had peeled off enough of the 126 rebels to pass the vote. However, as many as 50 were still threatening to rebel unless the vote was pulled. The reforms had originally been forecast to save the Government £5billion a year by the end of the Parliament. Charity bosses and Labour MPs still planning to rebel also warned the new proposals would create a 'two-tier' benefits system because existing Personal Independence Payment (PIP) claimants will keep their current level of disability payments. But new claimants after November 2026, when the changes are scheduled to kick in, would be entitled to as much as £4,000 a year less on average, even if they suffered from the same condition which meant they couldn't work. Before the U-turn, both existing and future claimants were facing stricter eligibility conditions for the daily living component of PIP, a working-age benefit for those whose health condition increases their living costs. The concessions on PIP alone protect some 370,000 people currently receiving the allowance who were set to lose out following reassessment. Meanwhile, existing claimants of the universal credit (UC) health element, paid to those with a condition which stops them working, will have their payments protected in real terms. However, new claimants will see it halved and frozen. According to calculations by the Resolution Foundation think tank, the PIP and UC reforms will cost £1.5billion each. Sir Keir yesterday branded his own climbdown 'common sense' and refused to rule out tax increases to pay for it in an interview. During a visit to RAF Valley in Wales, he said how the Government intended to pay for it would be revealed in the autumn Budget, adding: 'The changes still mean we can deliver the reforms that we need and that's very important because the system needs to be a system that is fit for the future. 'All colleagues are signed up to that, but having listened, we've made the adjustments. The funding will be set out in the Budget in the usual way.' Yesterday's climbdown is hugely embarrassing for Sir Keir as it highlights the scale to which he failed to read his MPs' mood over the proposed cuts, with rebels having spoken out for months. Care minister Stephen Kinnock dismissed criticism that the Government was in chaos and that Sir Keir was not 'competent', insisting that the process had been 'positive and constructive' and that the PM was someone who 'gets stuck into fixing problems'. Care minister Stephen Kinnock (pictured) dismissed criticism that the Government was in chaos and that Sir Keir was not 'competent', insisting that the process had been 'positive and constructive' and that the PM was someone who 'gets stuck into fixing problems' But Kemi Badenoch said the debacle left benefits claimants facing 'the worst of all worlds'. Speaking to reporters on a visit to North West Essex, the Tory leader said: 'I think we're seeing a government that is floundering, a government that is no longer in control despite having a huge majority. I don't see how they're going to be able to deliver any of the things they promised if they can't do something as basic as reducing an increase in spending. 'It's a real shame because what they're doing now with this U-turn is creating a two-tier system... this is the worst of all worlds.' Arch rebel Nadia Whittome, the Labour MP for Nottingham East, said: 'These revised proposals are nowhere near good enough, and frankly, are just not well thought through. It would create a two-tier system in both PIP and the Universal Credit health element based on when somebody became disabled.' Sir Mel Stride, the Shadow Chancellor, said: 'Labour promised not to raise taxes on working people, and their Jobs Tax has led to rising unemployment and growth being halved. Now the Government has been unable to rule out that taxes will go up this autumn in order to pay for Keir Starmer's latest U-turns.'
BBC News
3 hours ago
- Politics
- BBC News
Prime minister's benefit cuts U-turn leaves backbenchers feeling bruised
"What an absolute bloody shambles!"When we tell you that this is the unvarnished view of a Labour MP now willing to back the Prime Minister Keir Starmer's benefits plans, you get a sense of how much anger this row has provoked and is still there are still plenty who are not happy and still either pushing for further changes or planning to vote against the measures."It is not the resolution lots of people want. They are tinkering with a broken bill," another MP tells us. After backbench Labour MPs revolted against the government's proposed welfare reforms, the prime minister made concessions, saying the stricter criteria would only apply to new claimants."Clearly some at least will have been pacified by the concessions but there are still very significant numbers" of opponents, a third MP texts, adding "it shouldn't be underestimated the potential effect of a weekend of emails from constituents, constituency surgeries etc."Debbie Abrahams, the Labour MP who chairs the Work and Pensions Select Committee, told the BBC: "The concessions are a good start, they are very good concessions and they will protect existing claimants. However there are still concerns about new claimants. It would not be right for me not to do anything just to spare the prime minister an inconvenience." In other words, she does not appear won over note that Disability Labour, which describes itself as "an independent socialist society affiliated to the UK Labour Party" is still urging all MPs to oppose the see how opinion and mood within the Parliamentary Labour Party settles by is very clear is many Labour backbenchers feel very Street "see us as an inconvenience, people to manage, not to listen to. When we are invited into No 10, and it doesn't happen often, it is to be told what to think," is how one MP puts is not hard to find pretty blunt assessments of the prime minister and his Chief of Staff Morgan MPs say the whips – those in charge of party discipline – had raised the concerns of many with Downing Street."They either didn't think about it or didn't think new MPs would have the balls to stand up to them," reflected one."Perhaps this is the moment they finally get it," reflects another, "and they get better at talking to us, and listening." Keir Starmer u-turns on benefits changes after Labour backlashWe've got the right balance says Keir Starmer, after benefits U-turnWhy Keir Starmer faces a political storm over welfare reforms Others fear that the six month cycle of Chancellor Rachel Reeves seeking to meet her self-imposed fiscal rules will, as they see it, mean the pattern of hunting for cuts will keep think the only solution, in time, will be a new chancellor. Senior voices in government counter that Starmer and Reeves personify the modern Labour Party in government. Those voices say being seen as responsible with the country's finances is paramount and Reeves' rules help achieve around the prime minister will be glad the week is over and hopeful they picked the least worst option to deal with the outbreak of insurrection over they may allow themselves a moment's reflection on the best part of a year in government. Next Friday marks the first anniversary of the general election, and so 12 months since Sir Keir Starmer became prime part of that he has given an interview to his biographer, the journalist and former Labour Party Director of Communications Tom Baldwin in The Observer. In it, Sir Keir said he was too gloomy last summer and he regreted saying "the damage" done the country by immigration in recent years "is incalculable". He also said that his remark that immigration risked turning the UK into an "island of strangers" was a mistake and repudiates much else of the political strategy of his first year in spent the week battling to mend relations with many on the left and centre-left of the Labour Party, this interview has managed to find a way to alienate his allies too."Outrageous", "weak", "totally lacking in moral fibre" are just a few of the choice words from Starmer loyalists — yes, is particular anger at the perception that he is throwing his closest aides under a bus.A senior government source said they were too angry to speak about leaves the impression that right now, the prime minister is a politician who cannot do anything it also, yet again, poses a bigger question about what the prime minister stands those remarks about immigration were a mistake, what does he really think?Finding definition in his second year in No 10, as well as avoiding cock-ups, will be key.
The Sun
4 hours ago
- Business
- The Sun
Keir Starmer ‘put party before country' by caving in to benefit cut rebels, blasts Labour peer
SIR KEIR Starmer has put 'party before country' by caving to rebels and softening his benefit cuts, a Labour peer has warned. The PM was slammed for opting to appease the revolt rather than sticking with flagship reforms. Former benefits minister Lord Hutton said: 'The country cannot afford to sit back and see these welfare levels rising in the way they are and although it's uncomfortable for a lot of Labour MPs we can't go on ducking.' He added: 'I think the people that we mustn't lose sight of in all of this debate are the taxpayers who fund the welfare system.' 'It's rising at a level which I think is really unsustainable over the medium term, and the job of government is to address that, not to try and pretend it's not there." He says that the PM will have 'no choice' but to come back to welfare spending and try and reduce it. The climbdown on benefits and the winter fuel u-turn will force Chancellor Rachel Reeves to find £4.5billion after 126 Labour MPs threatened to derail plans. Downing Street insisted there would be no 'permanent' increase in borrowing but declined to rue out tax rises at the Autumn Budget to pay for it. Sir Keir said: '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.' But hardline Labour rebel Nadia Whittome said the concessions were 'nowhere near good enough'.
The Sun
4 hours ago
- Business
- The Sun
Keir Starmer's latest U-turn on benefits is the worst of all worlds and leaves PM at a major crossroads
Country first? KEIR Starmer's capitulation to his own party is the worst of all worlds. No meaningful reform of the out-of-control benefits system will happen and most of Labour's planned £5billion savings won't be made. 1 Whacking tax rises to fill the black hole now look inevitable. It has also sent a signal that the PM — despite his huge majority — can't deliver any serious public spending cuts. After this debacle, how will he reform the NHS or slash the civil service Blob? His rebels will now demand an end to the two-child benefit cap, too. As for taking on ludicrous wage demands from doctors and other public sector workers — forget it. The PM has now made major U-turns on winter fuel payments, grooming gangs and benefits. Presumably under pressure from his leftie comrades, Sir Keir yesterday also said he now deeply regrets his previous claim on mass immigration that it risked Britain becoming 'an island of strangers'. Except that it was probably one of the few occasions where most ordinary folk AGREED with him. After just 12 months, the PM is at a major crossroads. Elected on his promise to put country before party, he has this week done the complete opposite. Appeasing his virtue-signalling MPs may get him through difficult days in Westminster. But for the rest of us it spells very bad news indeed. Petty crime JUST last month chief constables begged for more cash. Without it, they warned, the country would be overwhelmed by criminals. Really? As we reveal today, they have plenty of time and money to investigate absurd 'hate crimes' — from singing Flower of Scotland at an English railway station, to questioning if a person's designer clothes are fake. Can we suggest senior cops and the Government stop hitting up the taxpayer, and instead save cash by scrapping inquiries into so-called non-crime hate incidents. It might even free them up to catch a shoplifter or two. Booze & cheers That would have dealt a savage blow to struggling horse-racing venues and lower league football clubs — and punished punters. Ditch the Nanny-state plan to outlaw booze adverts, too.
Daily Mail
6 hours ago
- Business
- Daily Mail
The mask slips… it only took a day! SNP minister admits: I'm 'happy' for welfare bill to skyrocket
A senior SNP minister has said she is 'happy' for Scotland's benefits bill to continue to skyrocket. Shirley-Anne Somerville was accused of being 'detached' from the priorities of ordinary Scots after she rejected concerns about the soaring cost of welfare payments. It came just a day after her government unveiled a £2.6billion cuts drive which will consider changes to the current 'light-touch' approach to adult disability payment appeals in order to bring down costs. Experts say spending cuts or tax rises will be needed to pay for the rising cost of devolved benefits, which is forecast to soar to more than £9billion a year. Scottish Conservative social security spokesman Alexander Stewart said: 'This sums up how detached SNP ministers are from Scots priorities. Hard-pressed taxpayers are desperate for them to tackle Scotland's benefits bill. However, this answer makes it clear the Nationalists are content to squander their money rather than accepting their failure to get a grip on the costs of their benefits system. 'If they don't get a grip of this situation, it will mean further cuts to essential services or yet more tax rises for hard-pressed Scots, who are already sick of paying more and getting less.' The Social Security Secretary's comments came during an appearance on the BBC's Question Time programme from St Andrews, after she condemned Labour's welfare reforms. Asked if she was happy to see the welfare bill increase, she said that there needs to be a 'robust' social security system which supports people when they need it. She said: 'I will not support cuts if it takes away from the vulnerable.' Pressed on whether she was happy that the bill will increase, she said: 'I am happy that we have a government that has the backs of disabled people, unlike Labour, and we will not walk away from them up here in Scotland.' Presenter Fiona Bruce said: 'Just to be clear, as the welfare bill is increased in Scotland you are happy with that?' Ms Somerville replied: 'We know that we have responsibilities as a government to meet that budget, so I'm happy with the fact that we are supporting people, yes.' During the programme, filmed as details about the UK Government's partial U-turn on welfare reform began to emerge, Scottish Labour leader Anas Sarwar highlighted that the SNP was reviewing its approach to adult disability payment assessments, and 'recognise that the sustainability of it is in question'. The Fraser of Allander Institute has previously said the number of people receiving devolved disability benefits is forecast to rise to over 1.13million by 2029/30. While it said the caseload for disability benefits is growing across the UK, 'it is rising more rapidly in Scotland', where a 'light-touch review process' has been introduced, 'where claimants can confirm their condition remains the same without needing to provide extensive new evidence'. The Scottish Government's fiscal sustainability delivery planb acknowledged that there has been 'a lower rate of adult disability benefit awards being ended or decreased at review than previously forecast'. Ms Somerville also admitted that Scotland's NHS has 'challenges' when confronted with concerns about cancer care delays. Mr Sarwar said: 'Put bluntly, I don't believe the NHS will survive a third decade of John Swinney and the SNP.'
