Government climbdown on welfare Bill marks third U-turn this month
Here, the PA news agency looks at three major policy changes this month.
– Welfare reforms
The Universal Credit and Personal Independence Payment Bill was put in motion to change who could qualify for certain disability and sickness benefits.
The package restricted eligibility for Pip, the main disability payment in England, and cut the health-related element of Universal Credit, in a bid to save £5 billion a year by 2030.
But a backbench rebellion of more than 120 Labour MPs forced Sir Keir into a U-turn.
In an attempt to appease those MPs, planned cuts will now only affect future applications for benefits, rather than existing claimants.
(PA Graphics)
– Winter fuel payment
The Government scrapped winter fuel payments for pensioners who do not receive pension credits or other means-tested benefits just weeks after it came to power in July.
It was described as a 'necessary and responsible' move by Chancellor Rachel Reeves, who argued it would help fill the £22 billion fiscal black hole.
The Government said that changing the threshold for the payment would save £1.5 billion each year.
But at the start of this month, the Prime Minister announced that the Government would reinstate winter fuel payments for millions of pensioners.
The payment, worth up to £300, will be restored to the vast majority of pensioners who previously received it because anyone with an income of under £35,000 a year will now get the payment automatically.
The Government said the change will cost £1.25 billion.
The move followed the report by Baroness Louise Casey (James Manning/PA)
– Grooming gangs
Sir Keir has also U-turned on holding a national inquiry into grooming gangs.
In January, the Prime Minister accused those calling for an inquiry of 'jumping on a far-right bandwagon' after tech entrepreneur Elon Musk criticised the UK for its lack of action on the issue.
But following the recommendations of a report by Baroness Louise Casey into the scale of group-based child sexual abuse, Sir Keir announced in June that there would be a full national statutory inquiry.
The Prime Minister had initially only promised five local inquiries in the most prevalent areas for grooming gangs.
Asked about the change, Sir Keir said: 'I've never said we should not look again at any issue.'
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Daily Record
4 minutes ago
- Daily Record
Scots charity says Labour welfare cuts will 'rip gaping holes' in support for vulnerable
Citizens Advice Scotland has criticised the welfare reforms as well as the last minute changes to the bill A top Scottish charity has dismissed Keir Starmer's concessions on his welfare cuts bill as 'nowhere near enough'. Citizens Advice Scotland said the decision to exempt existing claimants only from tougher eligibility rules creates a 'two tier' system. The Labour Government was under huge pressure over plans to slash around £5bn from the disability and sickness benefits bill. But Ministers made a late-night climbdown ahead of Tuesday's vote by watering down the cuts package. All current Personal Independent Payment recipients - a benefit devolved to Holyrood - will not now be affected by the crackdown. New claims from November 2026 will come under the tightened rule regime. The concessions are expected to head off a major rebellion by Labour MPs, but CAS hit out at the revised plan. CAS spokesperson Emma Jackson said: 'The concessions that have been reported are nowhere near enough. Creating a two-tier system is highly problematic. It seems the UK Government's message is: you're ok if you are disabled today, but good luck if you become disabled tomorrow. 'Furthermore, it appears none of the issues that the reforms risk for people in Scotland have been addressed, like guaranteeing the passporting capacity of the adult disability payment. Without this huge uncertainty exists. 'Social security is an investment in all of us that should act as both a safety net and springboard; enabling people to realise their potential and providing support during the challenges of life that any of us could experience. 'These reforms will rip gaping holes into the system that so many depend on. In a just and compassionate society, we cannot allow this to happen. We urge the UK Government to halt these reforms altogether and engage with meaningful consultation and co-design with disabled people.' Over 100 Labour MPs, including 12 from Scotland, had signed up to an amendment to the welfare bill that would have wrecked the entire package. Asked whether he was confident the Universal Credit and Personal Independence Payment Bill would now pass, health minister Stephen Kinnock told Times Radio: 'Yes.' One of the MP rebels, Dame Meg Hillier, appeared satisfied with the compromise: 'This is a positive outcome that has seen the Government listen and engage with the concerns of Labour MPs and their constituents. '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. This means that disabled people currently in receipt of Pip and the health element of universal credit will continue to receive the same level of support.' Work and Pensions Secretary Liz Kendall: 'I hope these changes will mean we get support for our Bill, a Bill that wants to ensure fairness in the welfare system for people who really need support. It's really important that we make changes in the future so the welfare state is there for people who really, really need it.' She said of claims about a ' two tier ' system: 'Well the changes that we are introducing will make sure existing claimants are unaffected, but we also all agree that there do need to be changes in the future to make sure that people who can work do, so we protect those who can't but we make the welfare state sustainable for the future.' SNP Social Justice Secretary Shirley-Anne Somerville said: 'The changes now being proposed by the UK Government would create a two-tier system, which cannot be fair. 'And this half U-turn still does not scrap the rule which will deny Personal Independence Payment to people unless they score four points or more for at least one activity. This will prevent support for hundreds of thousands of people with disabilities in the future. 'These reforms have been shambolic from the start. They will be hugely damaging to those who rely on social security support, and still seek to balance the books by targeting the most vulnerable.'
Glasgow Times
6 minutes ago
- Glasgow Times
Labour in ‘good place now' on welfare, Kendall insists after Government U-turn
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. Work and Pensions Secretary Liz Kendall confirmed the U-turn in a letter to MPs late on Thursday night (Ben Whitley/PA) 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 Starmer bowed to backbench pressure over the Bill on Thursday (Ben Stansall/PA) 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.'
Powys County Times
6 minutes ago
- Powys County Times
Labour MPs demand ‘reset' in relations with Number 10 after welfare U-turn
Labour MPs have called for a reset in relations with Downing Street as the fallout from the welfare rebellion threatens to cause lasting damage. A late-night climbdown on welfare cuts from Number 10 may have seen off the threat of Sir Keir Starmer's first major Commons defeat, with rebels suggesting they now expect the Universal Credit and Personal Independence Payment Bill to pass its first hurdle on July 1. But speaking to the PA news agency, a number of Labour backbenchers expressed deeper frustration with how Downing Street has handled its backbenchers since last year's election. One warned that discontent and low morale among MPs would 'continue to fester' without a 'wider reset' in relations between Number 10 and the Parliamentary Labour Party after 'a year of poor party management'. Another accused decision-makers in Government of operating as an 'exclusive club' and showing 'disregard' for both backbenchers and experts outside Westminster. They told PA: 'I think the Government have got to stop pretending they know everything and start listening, because they might learn something.' Several backbenchers pointed to the Prime Minister's words at a press conference on Wednesday, in which he referred to keeping a 'focus on the change that we want to bring about' rather than the 'noises off'. Although Government sources suggested Sir Keir was talking in more general terms, rebels have taken his 'noises off' comment as referring to them. One said: 'A lot of colleagues are sickened at language being used, from the PM's 'noises off' to the senior source saying they thought Keir and Morgan (McSweeney, the Prime Minister's chief of staff) had cleansed the party of self-indulgent rubbish.' But their frustration is not shared by all Labour backbenchers, with others suggesting Friday's U-turn on welfare cuts shows Downing Street is willing to listen. One told PA: 'They're a new team, they're a year in and occasionally teams do need to have a moment where things come to a head and they learn.' Arguing that some backbenchers needed to 'chill out and have a cup of tea', they added they thought the Prime Minister had 'clocked that it's important that we work as part of a team. 'All of us want him to succeed and all of us want the Government to succeed,' they said. A Number 10 spokesman insisted on Friday that the Prime Minister 'remains fully committed to engaging with parliamentarians'.
