Welfare U-turn will cost £2.5bn by 2030, Liz Kendall tells MPs
But her statement to MPs on Monday suggested the measures would save less than half the £4.8 billion the Government had expected from its initial proposals.
Ms Kendall's statement confirmed the concessions announced last week in an effort to head off a major rebellion by Labour backbenchers, including protecting people who claim personal independence payments from new eligibility criteria.
Responding to claims this would create a 'two-tier' benefits system, Ms Kendall said: 'I would say to the House, including members opposite, that our benefits system often protects existing claimants from new rates or new rules, because lives have been built around that support, and it's often very hard for people to adjust.'
Earlier, modelling from the Department for Work and Pensions (DWP) suggested the Government's proposals would push 150,000 more people into poverty by 2030.
The figure is down from the 250,000 extra people estimated to have been facing relative poverty after housing costs under the original proposals.
Modelling published by the DWP said the estimate does not include any 'potential positive impact' from extra funding and measures to support people with disabilities and long-term health conditions into work.
Speaking in the Commons on Monday afternoon, Ms Kendall insisted that changes to her proposals on Pip and universal credit would 'ensure no existing claimants are put into poverty'.
A Number 10 spokesman also said that the DWP's poverty modelling was 'subject to uncertainty' and did not 'reflect the full picture', including investment in the health service to help people get back to work.
Ministers hope the concessions will be enough to avert defeat when MPs vote on the reforms on Tuesday, although Downing Street remains braced for a substantial revolt.
A 'reasoned amendment' proposed by senior Labour backbencher Dame Meg Hillier had received support from 126 Labour MPs, enough to overturn Sir Keir Starmer's majority.
On Friday, Dame Meg had described the concessions as a 'workable compromise'.
But Labour MP Debbie Abrahams, who negotiated the concessions alongside Dame Meg, told ITV News on Monday that the Government had rowed back on what had been negotiated.
Although she described the concessions as 'good', Ms Abrahams said the rebels were 'not quite there yet' on a deal with the Government.
She added: 'The actual offer that was put to one of the negotiating team wasn't actually what we thought we had negotiated on Wednesday and Thursday. There are some issues around that.'
In the Commons, both Dame Meg and Ms Abrahams raised concerns that a review of Pip, to be conducted by disabilities minister Sir Stephen Timms, would report too late to have an effect on the changes scheduled for November 2026.
Meanwhile, Conservative shadow work and pensions secretary Helen Whately accused the Government of making 'unfunded U-turns costing billions and welfare plans that are not worth the paper that they are written on'.
She said: 'Their latest idea is a two-tier welfare system to trap people in a lifetime on benefits and deny them the dignity of work while leaving the taxpayer to pick up the ever-growing bill.'
Tory leader Kemi Badenoch confirmed on Monday evening that her party would vote against the Government's proposals, saying they were 'not serious welfare reform'.
Accusing Sir Keir of having 'watered down the small savings Labour were making', she added: 'We have a Government that is incapable of governing. For that reason, we will be voting against the welfare Bill tomorrow.'
The U-turn will also cause problems for Chancellor Rachel Reeves, who will now have to find a way to cover the shortfall between the amount the Government had expected to save, and the new, lower figure.
And that figure could be even higher, with economists at the Institute for Fiscal Studies and the Resolution Foundation suggesting last week the U-turn could cost in the region of £3 billion, raising the prospect of further tax rises.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
25 minutes ago
- Daily Mirror
Universal Credit claimants could be missing out on £1,149 a month
More than seven million people in the UK are currently in receipt of Universal Credit, but there could be more cash support available to them Thousands of Brits could be missing out on up to £1,149 from the Government. Many people living with a disability or health condition may not realise they are eligible for extra cash support from the Department for Work and Pensions (DWP). The most recent data from the DWP reveals that as of January's end, 7.5 million individuals across Scotland, England, and Wales were receiving financial assistance through Universal Credit. This income-related benefit is intended to support those with low incomes, whether they are employed or not, with daily living expenses. However, as reported by the Daily Record, many who claim Universal Credit or income-related Jobseeker's Allowance (JSA) and have a disability, long-term illness, or physical or mental health condition may be unaware that they could be eligible for additional financial aid through Personal Independence Payment (PIP) or Adult Disability Payment (ADP). The latter has replaced all new PIP claims in Scotland and can assist with daily living or mobility costs. Both PIP and ADP are tax-free, non-means tested payments that do not impact the benefit cap. This means that a single claimant over 25 on Universal Credit or JSA making a new claim for either benefit could potentially receive up to £749.80 every four weeks, separate from their other benefits. When combined with a monthly Universal Credit payment of £400.14 (single, over-25 rate), this could provide up to £1,149.94 each month. It's crucial to note that this figure is based on someone receiving the higher rate of both the daily living and mobility components of either PIP or ADP. It's also important to understand that having a health condition does not automatically qualify someone for PIP or ADP. Instead, it's how the condition affects a person's daily living and/or mobility needs that matters. PIP and ADP payment rates You will need an assessment to work out the level of financial help you will receive and your rate will be regularly reviewed to make sure you are getting the right support. PIP is made up of two components - daily living and mobility. Whether you get one or both of these and how much depends on how severely your condition affects you. Payments are issued every four weeks. You will be paid the following amounts per week depending on your circumstances. Daily living Standard rate: £73.90 Enhanced rate: £110.40 Mobility Standard rate: £29.20 Enhanced rate: £77.05 Even though new claims for PIP have been replaced in Scotland by ADP, it shares most of the same eligibility criteria. PIP health conditions These are the main disability categories, the umbrella term by which more than 530 other conditions fall under. This list is only an overview of conditions, disorders and diseases and how the DWP lists the main disabilities being claimed for. Multisystem and extremes of age Malignant disease Haematological Disease Cardiovascular disease Psychiatric disorders Diseases of the liver, gallbladder, biliary tract Infectious disease Autoimmune disease (connective tissue disorders) Diseases of the immune system Genitourinary disease Musculoskeletal disease (general) Musculoskeletal disease (regional) Metabolic disease Visual disease Neurological disease Respiratory disease Skin disease Gastrointestinal disease Hearing disorders Endocrine disease Who might be eligible for PIP or ADP To be eligible for PIP or ADP, you must have a health condition or disability where you: Have had difficulties with daily living or getting around (or both) for three months Expect these difficulties to continue for at least nine months You usually need to have lived in the UK for at least two of the last three years and be in the country when you apply In addition to what we have outlined above, if you get or need help with any of the following because of your condition, you should consider applying for PIP or ADP: Preparing, cooking or eating food Managing your medication Washing, bathing or using the toilet Dressing and undressing Engaging and communicating with other people Reading and understanding written information Making decisions about money Planning a journey or following a route Moving around There are different rules if you are terminally ill. DWP or Social Security Scotland will assess how difficult you find daily living and mobility tasks. For each task they will look at: Whether you can do it safely How long it takes you How often your condition affects this activity Whether you need help to do it, from a person or using extra equipment You can make a new claim by contacting the DWP, you will find all the information you need to apply on the website here. To find out more about ADP or apply, visit the dedicated pages on here.
South Wales Guardian
27 minutes ago
- South Wales Guardian
PM takes blame for welfare U-turn as he gives full backing to Chancellor
Speaking to the BBC in his first interview since a threatened backbench revolt forced him to strip out a major part of his welfare reform plan, he acknowledged the past few days had been 'tough'. He said: 'Labour MPs are absolutely vested in this. It matters to them to get things like this right, and we didn't get that process right. We didn't engage in the way that we should have done.' But he insisted his Government would 'come through it stronger' as he vowed to 'reflect' on what needed to be done 'to ensure we don't get into a situation like that again'. Sir Keir also gave his full support to Chancellor Rachel Reeves after she was seen crying during Prime Minister's Questions on Wednesday. Ms Reeves's visibly tearful appearance in the Commons came amid speculation that her job was at risk after the welfare U-turn put an almost £5 billion hole in her spending plans. But the Prime Minister insisted her appearance had 'nothing to do with politics, nothing to do with what's happened this week' and was 'a personal matter'. Asked if she would remain in her post, he said: 'She will be Chancellor for a very long time to come, because this project that we've been working on to change the Labour Party, to win the election, change the country, that is a project which the Chancellor and I've been working on together.' On Thursday morning, Health Secretary Wes Streeting said Ms Reeves would 'bounce back' as he praised her 'leadership' on the economy. He also dismissed a suggestion that Sir Keir himself could be at risk, telling Sky News: 'Keir Starmer has been consistently underestimated. 'I wonder when people will learn. They said he couldn't win the Labour leadership, but he did. They said he couldn't change the Labour Party, but he did. They said he couldn't take the Labour Party from its worst defeat since the 1930s to election victory last year, and he did. 'And now the cynics say he can't change the country, but he will.' But Conservative shadow chancellor Sir Mel Stride said the scenes in the Commons over the past week had left bond markets 'twitchy' about the Government and 'their ability to actually grip things like spending going forward'. Appearing on BBC Breakfast, Sir Mel appeared to distance himself from Robert Jenrick, who had earlier posted a video on social media describing Ms Reeves's career as 'dead'. But he added that Mr Jenrick was making a 'valid' point that the Government had 'lost control of the economy', laying the blame with the Chancellor and Sir Keir and warning of tax rises to come.
Daily Record
41 minutes ago
- Daily Record
MP votes for benefits reform insisting Lanarkshire constituents won't receive less money
Only four Labour MPs out of 37 in Scotland voted against the watered-down Bill despite a revolt Pamela Nash MP backed Keir Starmer plans to cut benefits for people with disabilities and insisted that constituents in North Lanarkshire won't see any reduction in the amount they receive when the system is reformed. The MP for Motherwell, Wishaw and Carluke had previously criticised the Tories when they were in power over cuts to disability support but voted in favour of her own party's Universal Credit and Personal Independence Payment Bill at the Second Reading, which she believes will create a fairer benefits system. A revolt in the party led to 49 Labour MPs voting against the motion but it had threatened to be many more as the government made a number of eleventh hour adjustments to gain support for the Bill. Only four Labour MPs out of 37 in Scotland voted against the watered-down Bill following a five-hour debate in the House of Commons. Brian Leishman MP for Alloa and Grangemouth was one of the four who voted against, he had labelled the Bill "shameful". He added: 'I did not come into politics to impoverish some of the most vulnerable people in society, and I did not join the Labour Party to make life even more difficult for the working class." Eligibility for new PIP (Personal Independence Payment) claimants will change from November 2026, but this won't apply to people in Scotland, as PIP here has been replaced by the Adult Disability Payment which has been protected by the Scottish Government and is delivered by Social Security Scotland. Pamela Nash MP cited her own experiences of being a benefits claimant, saying: 'I know what it is like to live on benefits, the unrelenting stress of trying to make ends meet while trying to find a job. Living with a health condition or disability brings additional pressures. 'It is important to me that these reforms do not add to this stress but alleviate it. 'Labour MPs have worked tirelessly together to make significant improvements to the bill, including making sure that no current claimants of PIP or Universal Credit will have their benefits cut, and bringing forward and increasing the support to provide genuine help for people to get the correct skills and find suitable work. 'This is a bill that takes action to improve our broken benefit system. But I know that there will be many who are worried as there has been much coverage in the media of this bill, and much misinformation spread too. 'Let's be crystal clear - no one currently in receipt of benefits in Motherwell, Wishaw and Carluke will see any reduction in the amount they receive as a result of this bill. 'Changes to Universal Credit will only apply to new claimants from April 2026, those currently in receipt of Universal Credit will see no reduction to their income. 'Changes to PIP do not apply to people in Scotland, as we now have a different, equivalent benefit called the Adult Disability Payment (ADP).' However, the Lanarkshire MP highlighted that the Bill includes an above-inflation rise to Universal Credit and an investment of £2.2 billion over four years on health, skills and work support. She continued: 'Welfare exists to provide a safety net for all of us for the times when life does not go to plan, when we are out of work or unable to work. 'But over the last few years it has been failing to achieve this. Benefits paid to jobseekers are not enough to live on, and people who can work go on to disability benefits with fewer and fewer prospects of ever coming off them. 'The reforms to Universal Credit this Labour Government has put forward will take steps to fix this.' And did you know Lanarkshire Live had its own app? Download yours for free here.
