Latest news with #benefitsCuts
Daily Mail
07-07-2025
- Politics
- Daily Mail
Slow learner... Kendall forgets her own history: ANDREW PIERCE
One particular minister should have known better than to underestimate hostility to the proposed benefits cuts last week. Work and Pensions Secretary Liz Kendall was mauled in the Commons over the disastrous welfare Bill, which sparked a major Labour rebellion and a humiliating 11th-hour U-turn. But, back in 1998, Tony Blair 's government was rocked by a similar revolt when it cut benefits for single parents. Although the controversial measure passed through Parliament, 47 Labour MPs voted against it and the plan's mastermind Harriet Harman was eventually sacked as social security secretary a few months later. Who was Harman's political adviser at the time? Step forward a young Liz Kendall. Talk about history repeating itself. To mark the anniversary of Sir Keir Starmer 's government, I took a look at his party's manifesto. In the first paragraph, there is a pledge to 'stop the endless Conservative chaos' of recent years. In fact, there are no fewer than 38 references to ending Tory 'chaos' in the 136-page document. That looks to me like 38 broken promises and counting. Who is doing Rachel Reeves' make-up? The Chancellor's overnight transformation from her blubby, puffy-eyed PMQs performance to her laughing, fresh-faced visit to east London to unveil the ten-year NHS plan was remarkable. I gather one product known to remove eye bags with such speed is haemorrhoid cream Preparation H. Time to get a prescription? Lord Archer's wise words Sage advice from Lord Archer to would-be politicians: 'When young people come to see me, I say, 'For heavens' sake earn a living, get some experience, then become an MP. Don't go in until you're 40'.' The now 85-year-old became the Tory MP for Louth in 1969 at the age of 29. 'I was thinking I was a god, I was bound to be Prime Minister,' he admits. 'I was an arrogant fool.' Not that it worked out too badly for Lord Archer. He quit Parliament aged 34 because of financial issues – and went on to become a best-selling author. The idea of Angela Rayner becoming PM has been backed by a most unexpected source – the 12th Duke of Beaufort. 'People are terrified of Angela Rayner taking over from Starmer, but I think she is more pragmatic than one thinks,' muses the 73-year-old duke from his 52,000-acre Badminton Estate in Gloucestershire. Labour's Department for Business and Trade paid six 'digital influencers' to promote the Minimum and Living Wage Campaign. Their fees are 'confidential'. Sounds like the Treasury's clampdown on wasteful spending has a way to go. Speaking in Westminster Hall last week, Rishi Sunak made the somewhat underwhelming observation: 'A lot has changed in the last nine years.' Quite. How about eight chancellors and six prime ministers?
The Independent
01-07-2025
- Business
- The Independent
Labour MPs openly condemn Starmer welfare bill ahead of divisive vote
Sir Keir Starmer is facing a significant rebellion from Labour backbenchers over a controversial welfare bill, as two rebel MPs took to the airwaves to condemn the benefits cuts. The proposed reforms, which restrict eligibility for the main disability payment (PIP), are criticised for potentially driving 150,000 people into poverty. Work and Pensions Secretary Liz Kendall said the cuts would save £2.5bn, less than previously stated, and faced grilling from MPs concerned about the impact and lack of engagement with disability groups. Despite some concessions, 39 Labour MPs have signed an amendment to block the bill, with many more potentially voting against it or abstaining on Tuesday. While Business Secretary Jonathan Reynolds defended the bill as improved and necessary for welfare reform, rebel MPs face potential disciplinary action for defying the party leadership.
Daily Mail
29-06-2025
- Business
- Daily Mail
Keir Starmer admits he was distracted by Middle East crisis and NATO summit as he vows to 'carry the can' for Labour's embarrassing welfare U-turn
Sir Keir Starmer has admitted he failed to get to grips with the revolt by Labour MPs over benefits cuts as he was distracted by the Middle East crisis and a NATO summit. The Prime Minister spent much of the past fortnight out of the country to attend a meeting of G7 leaders in Canada, and then a NATO gathering in The Hague. He was also hunkered down in domestic emergency meetings over the Israel-Iran conflict, as well as the US bombing of Iran 's nuclear sites. At the same time, Labour MPs were mounting a major backbench rebellion over Sir Keir's plans to cut £5billion from Britain's welfare bill. The PM has now been forced to U-turn on those plans as he faced the threat of a hugely damaging defeat in the House of Commons. The embarrassing reversal has seen fresh scrutiny of Sir Keir's chief of staff Morgan McSweeney, with the powerful aide coming under attack over his handling of the row. But, speaking to The Sunday Times, Sir Keir insisted it was himself who should 'carry the can' for the humiliating climbdown. 'All these decisions are my decisions and I take ownership of them,' he said. The PM added: 'My rule of leadership is, when things go well you get the plaudits; when things don't go well you carry the can. 'I take responsibility for all the decisions made by this government. I do not talk about staff and I'd much prefer it if everybody else didn't.' Sir Keir admitted he was 'heavily focused' on international affairs over the past two weeks, as Labour's backbench rebellion grew in size. 'I'm putting this as context rather than excuse: I was heavily focused on what was happening with NATO and the Middle East all weekend,' he told the newspaper. 'I turned my attention fully to it when I got back from NATO on Wednesday night. 'Obviously in the course of the early part of this week we were busy trying to make sure NATO was a success.' The PM added: 'From the moment I got back from the G7, I went straight into a Cobra meeting. 'My full attention really bore down on this on Thursday. At that point we were able to move relatively quickly.' The Government's original welfare package had restricted eligibility for Personal Independence Payment (PIP), which is the main disability payment in England. It also cut 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 bid by ministers to head off backbench opposition. But, following the Government's latest offer of concessions to rebel MPs, the changes to PIP will now only be implemented in November 2026 and apply to new claimants only. All existing recipients of the health element of Universal Credit will also 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. Ministers had hoped the reforms would get more people back into work and save up to £5 billion a year. But the concessions made leave Chancellor Rachel Reeves needing to find money elsewhere and point to possible fresh tax rises in the autumn. Tory leader Kemi Badenoch will hit out at Sir Keir as 'incapable of sticking to a decision' after he backed down on his plans. The reforms would only have made 'modest reductions to the ballooning welfare bill', but the PM was 'too weak to hold the line', she is expected to say in an upcoming speech.
The Independent
27-06-2025
- Business
- The Independent
Labour in ‘good place now' on welfare, Kendall insists after Government U-turn
Labour is in a 'good place now' on welfare reform, a Cabinet minister has insisted after the Government agreed to water down its plans for benefits cuts amid the prospect of a major rebellion. Work and Pensions Secretary Liz Kendall sought to downplay party splits over the legislation after Downing Street offered concessions in a late-night climbdown to head off Prime Minister Sir Keir Starmer's first Commons defeat. Meanwhile, Number 10 said there will be no 'permanent' increase in borrowing as a result of the U-turn but declined to rule out tax rises in the autumn amid mounting questions about how the changes will be funded. 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. 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.' Asked how she felt about softening the impact of the policy, Ms Kendall said: 'I don't find it difficult, because the principles that I strongly believe in, that work for those who can is the best route out of poverty… that we must protect those who can never work, that is really, really important. 'Those principles are ones we all agree on. 'We're in the right place with the changes we've made.' The Government has also left the door open to further reform later down the line, with Ms Kendall saying there need to be 'changes in the future' to ensure 'people who can work do'. Ministers had hoped the Bill would save up to £5 billion a year, but the changes announced after crisis talks with rebels on Thursday mean Chancellor Rachel Reeves would need to find the money elsewhere to make up the shortfall. 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. Ms Kendall confirmed the U-turn in a letter to MPs late on Thursday night, along with plans for a review of the Pip assessment to be led by disabilities minister Sir Stephen Timms and 'co-produced' with disabled people. A Number 10 spokesperson said: 'We have listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the system. 'This package will preserve the social security system for those who need it by putting it on a sustainable footing, provide dignity for those unable to work, support those who can and reduce anxiety for those currently in the system.' 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.' 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. The concessions could also leave Ms Reeves scrambling to fill a hole in her budget come the autumn, with economists suggesting they could reduce the projected savings by at least £1.5 billion per year. The Institute for Fiscal Studies said the changes make further tax rises in the budget 'even more likely' in order for the Chancellor to balance the books. Meanwhile Ruth Curtice, chief executive of the Resolution Foundation think tank, suggested the changes could cost as much as £3 billion. Facing questions from reporters about how the reduction in cuts would be funded, Downing Street said there would be 'no permanent increase in borrowing' and promised further detail on the policy next week. 'We'll set out how this will be funded at the budget, alongside a full economic and fiscal forecast in the autumn, in the usual way,' a Number 10 spokesman said. 'The full details (of the changes) will be set out to Parliament ahead of the second reading on Tuesday.' Asked whether the Government could say there would be no tax rises to pay for the changes, the spokesman said: 'As ever, as is a long-standing principle, tax decisions are set out at fiscal events.' Number 10 dismissed suggestions that Sir Keir's leadership had been marked by a pattern of caving in 'if enough people kick up a fuss' following similar policy changes over the winter fuel payment and grooming gangs. Sir Keir earlier this month announced the fuel allowance would be reinstated for millions of pensioners and also agreed to a national inquiry into grooming gangs after an independent audit recommended a probe, following months of opposition pressure. 'It's not unusual as part of the parliamentary process to introduce a Bill, have a debate about the principles and then look at how those are implemented,' the spokesman said. 'Sometimes that's with amendments along the way.' On Friday morning, care minister Stephen Kinnock refused to be drawn on how the changes would be covered, saying it was 'very much the Chancellor's job as we move into the budget in the autumn'. He also declined to comment on whether it was fair that two people with the same condition would receive different amounts of money depending on when they started their claim. Mr Kinnock told Times Radio there were 'many different individual circumstances' and it was 'not possible to generalise'. Asked whether the Government now expected the Bill to pass, he said: 'Yes.' 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'. Director of strategy Jackie O'Sullivan said: 'It is the right thing to do and sends a clear message – cutting disability benefits is not a fair way to mend the black hole in the public purse.' 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'. Charlotte Gill, head of campaigns at the charity, said: 'We urge MPs not to be swayed by these last-ditch attempts to force through a harmful Bill with supposed concessions. 'The only way to avoid a catastrophe today and in the future is to stop the cuts altogether by halting the Bill in its tracks.' The Tories described concessions as 'the latest in a growing list of screeching U-turns' from the Government. Shadow chancellor Mel Stride said: 'Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment. 'Labour's welfare chaos will cost hardworking taxpayers. We can't afford Labour.'
Yahoo
27-06-2025
- Business
- Yahoo
Labour in ‘good place now' on welfare, Kendall insists after Government U-turn
Labour is in a 'good place now' on welfare reform, a Cabinet minister has insisted after the Government agreed to water down its plans for benefits cuts amid the prospect of a major rebellion. Work and Pensions Secretary Liz Kendall sought to downplay party splits over the legislation after Downing Street offered concessions in a late-night climbdown to head off Prime Minister Sir Keir Starmer's first Commons defeat. Meanwhile, Number 10 said there will be no 'permanent' increase in borrowing as a result of the U-turn but declined to rule out tax rises in the autumn amid mounting questions about how the changes will be funded. 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. 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.' Asked how she felt about softening the impact of the policy, Ms Kendall said: 'I don't find it difficult, because the principles that I strongly believe in, that work for those who can is the best route out of poverty… that we must protect those who can never work, that is really, really important. 'Those principles are ones we all agree on. 'We're in the right place with the changes we've made.' The Government has also left the door open to further reform later down the line, with Ms Kendall saying there need to be 'changes in the future' to ensure 'people who can work do'. Ministers had hoped the Bill would save up to £5 billion a year, but the changes announced after crisis talks with rebels on Thursday mean Chancellor Rachel Reeves would need to find the money elsewhere to make up the shortfall. 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. Ms Kendall confirmed the U-turn in a letter to MPs late on Thursday night, along with plans for a review of the Pip assessment to be led by disabilities minister Sir Stephen Timms and 'co-produced' with disabled people. A Number 10 spokesperson said: 'We have listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the system. 'This package will preserve the social security system for those who need it by putting it on a sustainable footing, provide dignity for those unable to work, support those who can and reduce anxiety for those currently in the system.' 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.' 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. The concessions could also leave Ms Reeves scrambling to fill a hole in her budget come the autumn, with economists suggesting they could reduce the projected savings by at least £1.5 billion per year. The Institute for Fiscal Studies said the changes make further tax rises in the budget 'even more likely' in order for the Chancellor to balance the books. Meanwhile Ruth Curtice, chief executive of the Resolution Foundation think tank, suggested the changes could cost as much as £3 billion. Facing questions from reporters about how the reduction in cuts would be funded, Downing Street said there would be 'no permanent increase in borrowing' and promised further detail on the policy next week. 'We'll set out how this will be funded at the budget, alongside a full economic and fiscal forecast in the autumn, in the usual way,' a Number 10 spokesman said. 'The full details (of the changes) will be set out to Parliament ahead of the second reading on Tuesday.' Asked whether the Government could say there would be no tax rises to pay for the changes, the spokesman said: 'As ever, as is a long-standing principle, tax decisions are set out at fiscal events.' Number 10 dismissed suggestions that Sir Keir's leadership had been marked by a pattern of caving in 'if enough people kick up a fuss' following similar policy changes over the winter fuel payment and grooming gangs. Sir Keir earlier this month announced the fuel allowance would be reinstated for millions of pensioners and also agreed to a national inquiry into grooming gangs after an independent audit recommended a probe, following months of opposition pressure. 'It's not unusual as part of the parliamentary process to introduce a Bill, have a debate about the principles and then look at how those are implemented,' the spokesman said. 'Sometimes that's with amendments along the way.' On Friday morning, care minister Stephen Kinnock refused to be drawn on how the changes would be covered, saying it was 'very much the Chancellor's job as we move into the budget in the autumn'. He also declined to comment on whether it was fair that two people with the same condition would receive different amounts of money depending on when they started their claim. Mr Kinnock told Times Radio there were 'many different individual circumstances' and it was 'not possible to generalise'. Asked whether the Government now expected the Bill to pass, he said: 'Yes.' 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'. Director of strategy Jackie O'Sullivan said: 'It is the right thing to do and sends a clear message – cutting disability benefits is not a fair way to mend the black hole in the public purse.' 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'. Charlotte Gill, head of campaigns at the charity, said: 'We urge MPs not to be swayed by these last-ditch attempts to force through a harmful Bill with supposed concessions. 'The only way to avoid a catastrophe today and in the future is to stop the cuts altogether by halting the Bill in its tracks.' The Tories described concessions as 'the latest in a growing list of screeching U-turns' from the Government. Shadow chancellor Mel Stride said: 'Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment. 'Labour's welfare chaos will cost hardworking taxpayers. We can't afford Labour.'
