Peston: PM to make 'substantial u-turn' on PIP payments
I understand Starmer's offer to the welfare rebel MPs is to protect PIP payments for all existing claimants forever.
There would be no detriment from the reforms for existing claimants.
This would shave circa £2bn from the reform savings by 2029. I am unclear whether this would persuade enough rebels to back the remaining reforms in next Tuesday's vote.There will also be 'grandfathering' of the disability top up universal credit for existing claimants. So again no detriment to existing claimants.
My estimate is this would shave another billion pounds or so from the reform savings by 2029. Finally, and importantly, the rebels - led by Treasury committee chair Meg Hillier - have secured agreement that the Stephen Timms review of how to assess entitlement to disability benefits will be a co-production with disability rights groups.
This is seen by rebel MPs as a major concession. My assumption is that enough rebel MPs will now drop their opposition to the reforms and Starmer will win on Tuesday.
But make no mistake, this is another substantial government u-turn.
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Glasgow Times
26 minutes ago
- Glasgow Times
Government announces concessions to welfare bill after talks
A letter from Work and Pensions Secretary Liz Kendall to MPs said adjustments to universal credit would also see incomes protected. The announcement comes after crisis talks with backbenchers, with some 126 MPs within the party signing an amendment that would halt the legislation in its tracks. Sir Keir Starmer's Universal Credit and Personal Independence Payment Bill has its second reading on Tuesday, the first opportunity for MPs to support or reject it. A spokesperson for Number 10 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, supports those who can and reduce anxiety for those currently in the system. 'Our reforms are underpinned by Labour values and our determination to deliver the change the country voted for last year.' The Government's original package restricted eligibility for the personal independence payment (Pip), the main disability payment in England, and limited the sickness-related element of universal credit. Existing claimants 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 by aiming to soften the impact of the changes. In her letter, the Work and Pensions Secretary said: 'We recognise the proposed changes have been a source of uncertainty and anxiety. 'We will ensure that all of those currently receiving PIP will stay within the current system. The new eligibility requirements will be implemented from November 2026 for new claims only. 'Secondly, we will adjust the pathway of Universal Credit payment rates to make sure all existing recipients of the UC health element – and any new claimant meeting the severe conditions criteria – have their incomes fully protected in real terms.' She said a ministerial review would ensure the benefit is 'fair and fit for the future' and will be a 'coproduction' with disabled people, organisations which represent them and MPs. 'These important reforms are rooted in Labour values, and we want to get them right,' she said. Work and Pensions Secretary Liz Kendall (PA) The change in Pip payments would protect some 370,000 existing claimants who were expected to lose out following reassessment. If the legislation clears its first hurdle on Tuesday, it will then face a few hours' examination by all MPs the following week – rather than days or weeks in front of a committee tasked with looking at the Bill. The so-called 'reasoned amendment' tabled by Treasury select committee chairwoman Dame Meg Hillier had argued that disabled people have not been properly consulted and further scrutiny of the changes is needed. She said: 'This is a good deal. It is massive changes to ensure the most vulnerable people are protected… and, crucially, involving disabled people themselves in the design of future benefit changes.' While the concessions look set to reassure some of those who had been leading the rebellion, other MPs remained opposed before the announcement. Speaking to the PA news agency before the concessions were revealed, Rachel Maskell said: 'As the Government is seeking to reform the system, they should protect all disabled people until they have completed their co-produced consultation and co-produced implementation. 'I cannot vote for something that will have such a significant impact … as disabled people are not involved, it is just a backroom deal.' One MP said that ministers would need to 'go back to the drawing board' to make the Bill acceptable. Another said they expected the legislation would get through second reading if the Government conceded the key sticking points relating to existing Pip claimants, the health element of universal credit and a policy consultation. 'It would need to be in the Bill, not just a commitment,' they said. Speaking in the Commons on Wednesday, Sir Keir told MPs he wanted the reforms to reflect 'Labour values of fairness' and that discussions about the changes would continue over the coming days. He insisted there was 'consensus across the House on the urgent need for reform' of the 'broken' welfare system. 'I know colleagues across the House are eager to start fixing that, and so am I, and that all colleagues want to get this right, and so do I,' he said. 'We want to see reform implemented with Labour values of fairness. 'That conversation will continue in the coming days, so we can begin making change together on Tuesday.' There was a 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'. '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,' director of strategy Jackie O'Sullivan said. But 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'. Head of campaigns at the charity, Charlotte Gill, 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
27 minutes ago
- Powys County Times
Government announces concessions to welfare bill after talks
People who currently receive the personal independence payment (Pip) will continue to do so after the Government made concessions to Labour rebels on controversial welfare reforms. A letter from Work and Pensions Secretary Liz Kendall to MPs said adjustments to universal credit would also see incomes protected. The announcement comes after crisis talks with backbenchers, with some 126 MPs within the party signing an amendment that would halt the legislation in its tracks. Sir Keir Starmer's Universal Credit and Personal Independence Payment Bill has its second reading on Tuesday, the first opportunity for MPs to support or reject it. A spokesperson for Number 10 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, supports those who can and reduce anxiety for those currently in the system. 'Our reforms are underpinned by Labour values and our determination to deliver the change the country voted for last year.' The Government's original package restricted eligibility for the personal independence payment (Pip), the main disability payment in England, and limited the sickness-related element of universal credit. Existing claimants 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 by aiming to soften the impact of the changes. In her letter, the Work and Pensions Secretary said: 'We recognise the proposed changes have been a source of uncertainty and anxiety. 'We will ensure that all of those currently receiving PIP will stay within the current system. The new eligibility requirements will be implemented from November 2026 for new claims only. 'Secondly, we will adjust the pathway of Universal Credit payment rates to make sure all existing recipients of the UC health element – and any new claimant meeting the severe conditions criteria – have their incomes fully protected in real terms.' She said a ministerial review would ensure the benefit is 'fair and fit for the future' and will be a 'coproduction' with disabled people, organisations which represent them and MPs. 'These important reforms are rooted in Labour values, and we want to get them right,' she said. The change in Pip payments would protect some 370,000 existing claimants who were expected to lose out following reassessment. If the legislation clears its first hurdle on Tuesday, it will then face a few hours' examination by all MPs the following week – rather than days or weeks in front of a committee tasked with looking at the Bill. The so-called 'reasoned amendment' tabled by Treasury select committee chairwoman Dame Meg Hillier had argued that disabled people have not been properly consulted and further scrutiny of the changes is needed. She said: 'This is a good deal. It is massive changes to ensure the most vulnerable people are protected… and, crucially, involving disabled people themselves in the design of future benefit changes.' While the concessions look set to reassure some of those who had been leading the rebellion, other MPs remained opposed before the announcement. Speaking to the PA news agency before the concessions were revealed, Rachel Maskell said: 'As the Government is seeking to reform the system, they should protect all disabled people until they have completed their co-produced consultation and co-produced implementation. 'I cannot vote for something that will have such a significant impact … as disabled people are not involved, it is just a backroom deal.' One MP said that ministers would need to 'go back to the drawing board' to make the Bill acceptable. Another said they expected the legislation would get through second reading if the Government conceded the key sticking points relating to existing Pip claimants, the health element of universal credit and a policy consultation. 'It would need to be in the Bill, not just a commitment,' they said. Speaking in the Commons on Wednesday, Sir Keir told MPs he wanted the reforms to reflect 'Labour values of fairness' and that discussions about the changes would continue over the coming days. He insisted there was 'consensus across the House on the urgent need for reform' of the 'broken' welfare system. 'I know colleagues across the House are eager to start fixing that, and so am I, and that all colleagues want to get this right, and so do I,' he said. 'We want to see reform implemented with Labour values of fairness. 'That conversation will continue in the coming days, so we can begin making change together on Tuesday.' There was a 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'. '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,' director of strategy Jackie O'Sullivan said. But 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'. Head of campaigns at the charity, Charlotte Gill, 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.'
Daily Mirror
38 minutes ago
- Daily Mirror
Keir Starmer given Hillsborough Law warning by MPs - 'don't betray families'
Dozens of MPs and peers have written to Keir Starmer to warn that the Hillsborough Law being drawn up is 'likely to fall far short of what was promised to the families' Nearly 140 MPs have urged Keir Starmer not to betray families with a "toothless replacement" for the Hillsborough Law. Dozens of MPs and peers have warned the legislation is "likely to fall far short of what was promised to the families". Mr Starmer has repeatedly vowed to introduce the Hillsborough Law - at party conferences, in Labour's manifesto and in conversations with families affected by the 1989 football disaster. But the Prime Minister failed to bring it forward before the anniversary of the tragedy in April - despite a commitment to do so in September 2024. Now families fear their loved ones will never get the legacy he pledged. Some 138 MPs and 29 peers from 10 political parties have called on the PM to drive through the bill "as you promised to do, and not some toothless replacement". In a letter to the PM, they said: "We have no doubt that the attempts to replace the Bill with wholly deficient and ineffective redrafts are led by those who are most likely to be affected by Hillsborough Law: senior civil servants and public institutions who want to retain their impunity in protecting their reputations above telling the truth. "A replacement bill - without the key provisions outlined above - will not command the support of Hillsborough families and survivors, nor other victims of state cover-ups." The original Hillsborough Law, drawn up by legal experts and presented to Parliament in 2017, was designed to ensure justice would never again be blocked by public officials trying to conceal wrongdoing. It would create a legal duty of candour for public authorities and officials, such as police officers, with criminal penalties for lying or withholding information. It also included a commitment to funding to help victims in legal battles with official bodies. The move has been backed by survivors of other state injustices, such as the infected blood scandal, the nuclear test veterans and the Post Office scandal. But progress stalled amid concerns in Government over the legal funding and whether the duty of candour is workable - something campaigners reject. One campaigner told the Mirror that officials had told them they made a mistake calling it a Hillsborough Law, and admitted "we should never have promised the families what they wanted". Another added: 'Putting politics aside, this Government is showing awesome ineptitude. It could be an easy win for Starmer but his team seems determined to snatch defeat from the jaws of victory.' Campaigners have not been shown the latest draft of the bill, and say they've been told it will no longer be referred to as 'the Hillsborough Law'. The new version is expected to be laid in Parliament before the Labour's annual conference in Liverpool in September. It is expected to give public officials a duty to tell the truth only at inquests or court cases, when they are already at risk of perjury. Sources say there is 'a huge carve-out for the military and security services', raising questions over its ability to prevent scandals like MI5's failures over the Manchester Arena bombings, and the Ministry of Defence 's cover-up of the Nuked Blood Scandal. Labour MP Ian Byrne, a Hillsborough survivor who represents Liverpool West Derby, who coordinated the letter, said: "If the Prime Minister doesn't enact the Hillsborough Law in full, it will be seen as another betrayal of Hillsborough families, survivors and victims of other state cover-ups.' Pete Weatherby KC, co-author of the original law who represented 22 of the families at the Hillsborough inquest, said: "The Prime Minister must now show leadership and deliver on his promise to deliver real cultural change, not a chocolate fireguard to protect the interests of those who want to remain free to lie and hide official wrongdoing.' Co-author Elkan Abrahamson, who represented 20 families during the Hillsborough inquests, said: 'The Hillsborough families are rightly angry at the way the Government has let them down. We stand with them and the many other campaign groups who will not give up the fight until the Hillsborough Law is enacted in full.' A spokesman for the campaign group Hillsborough Law Now said: 'We cannot support what we have not seen, and what we have seen was not supportable.' A Ministry of Justice spokesman said: 'The Hillsborough disaster is one of the greatest stains on British history, and the families of those who lost loved ones have shown endless determination to get justice. 'Having consulted with campaign groups, we know more time is needed to draft the best version of a Hillsborough Law. We remain fully committed to bringing in this legislation at pace, which will include a legal duty of candour for public servants and criminal sanctions for those who refuse to comply.'
