
Welfare reform legislation to be debated next month, MPs told
The Government has faced backlash from some Labour MPs over the 'damaging disability benefit cuts', which it has said could save up to £5 billion a year.
Ms Powell set the date for the Bill's second reading during business questions on Thursday.
Labour MP Neil Duncan-Jordan has accused the Government of 'rushing through' the Bill, adding: 'This isn't something I'm prepared to support.'
Ministers are likely to face a Commons stand-off with backbenchers over their plans, with dozens of Labour MPs last month saying the proposals were 'impossible to support'.
The reforms – aimed at encouraging more people off sickness benefits and into work – are set to include the tightening of criteria for personal independence payment (Pip), which is the main disability benefit, as well as a cut to the sickness-related element of universal credit (UC) and delayed access to only those aged 22 and over.
Work and Pensions Secretary Liz Kendall said the legislation 'marks the moment we take the road of compassion, opportunity and dignity'.
She added: 'Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.'
In what could be seen as an attempt to head off some opposition, the legislation will give existing claimants a 13-week period of financial support.
Work and Pensions Secretary Liz Kendall (Jacob King/PA)
The Department for Work and Pensions said this will apply to those affected by changes to the Pip daily living component, including those who lose their eligibility to Carers Allowance and the carer's element of UC.
But campaigners, including disability equality charity Scope, said the longer transition period, up from an originally expected four weeks, 'will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end'.
As the Bill was formally introduced to the Commons on Wednesday, and the question was asked as to what the next date for debate will be, former Labour MP John McDonnell, who now sits as an independent for Hayes and Harlington, could be heard to say 'Never'.
Mr Duncan-Jordan, MP for Poole, is one of the members who has urged ministers to withdraw the cuts, which he has argued will 'make things worse' for disabled people.
Speaking to the PA news agency, he said: 'It's clear the Government are rushing through this change before MPs have received all the necessary impact assessments that they need to make a decision.
'The Bill lays out how large numbers of disabled people are going to be made poorer. This isn't something I'm prepared to support.'
Earlier this week, Mr Duncan-Jordan had said: 'The Government will only withdraw its damaging disability benefit cuts if Labour MPs make clear they will vote against them.
'The so-called concessions that have been suggested are nowhere near enough to undo the damage that is being proposed. The facts are undeniable: these cuts won't create jobs, they'll only push three million people deeper into hardship.'
The latest data, published on Tuesday, showed that more than 3.7 million people in England and Wales are claiming Pip, with teenagers and young adults making up a growing proportion.
Pip is a benefit aimed at helping with extra living costs if someone has a long-term physical or mental health condition or disability and difficulty doing certain everyday tasks or getting around because of their condition.
Data for Pip claimants begins in January 2019, when the number stood at 2.05 million.
An impact assessment published alongside Wednesday's Bill introduction confirmed previously published estimates that changes to Pip entitlement rules could see about 800,000 people lose out, with an average loss of £4,500 per year.
The reforms are aimed at encouraging more people off sickness benefits and into work (Philip Toscano/PA)
Ms Kendall previously said there are 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year'.
The impact assessment also confirmed a previous estimate that some 250,000 more people, including 50,000 children, are likely to fall into relative poverty after housing costs in 2029/2030, although the Government repeated that this does not take into account the potentially positive impact of £1 billion annual funding by then for measures to support people into work.
Changes to UC are expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year.
But the Government said around 3.9 million households not on the UC health element are expected to have an average annual gain of £265 from the increase in the standard UC allowance.
While all of the Bill applies to England and Wales, only the UC changes apply to Scotland.
The Government said there are equivalent provisions to legislate for Northern Ireland included in the Bill.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Daily Mail
9 minutes ago
- Daily Mail
RACHEL RICKARD STRAUS: We pay a high price if No 11 is scared of markets
What can throw tantrums and fling its toys out of the pram when it doesn't get what it was hoping for? A petulant child may spring to mind – but it's an equally accurate description of financial markets. Investors crave certainty and Governments tie themselves in knots trying to give it to them for fear of the consequences. Understandably so – if investors start to lose confidence in a Government's prudence, they can throw a strop and refuse to lend it more money unless they are compensated with higher interest payments. Debt costs then spiral, gobbling up taxes and leaving the Government with less to spend on everything else. So you can see where Chancellor Rachel Reeves was coming from when she made it clear from the off that her mission is to keep financial markets happy. With debt interest predicted to cost us £111 billion this year, we can hardly afford for the bill to rise further. That's already around £3,915 per household. Appeased markets should mean lower debt payments – in theory, good news for us all. But Reeves' attempts to provide security for financial markets are resulting in her eroding it elsewhere. UK households are now the ones in the dark and fearful about what's coming their way – and that is starting to have its own consequences. Ms Reeves' strategy to create certainty was to construct rules about how much the Government would borrow and pledge never to break them. But meeting her rules is getting trickier as economic growth weakens. Short of a miracle, the only way she'll manage it is if households stump up. She'll have to find £50 billion from somewhere – be it tax rises or spending cuts. The problem is that we won't know where she'll target – and are unlikely to for several long months until the autumn Budget. The uncertainty is already starting to bite. Financial experts have told us that households risk making costly mistakes when trying to protect their estates against the possibility that Ms Reeves chooses to target inheritance tax. Leading estate agent Savills last week warned that a 'vacuum' of information about potential changes to inheritance tax is also affected house sales. Potential buyers are sitting on their hands in part because they don't know what is coming down the line. Collectively that hurts the housing market, but individually that's thousands of households stuck in homes that no longer suit them and putting life plans on hold. Aviva boss Amanda Blanc also warned last week that fears of a Budget tax raid are stoking customers' uncertainty. 'There's been a huge amount of speculation… customers should wait and see before they take any action,' she said. 'It is really important you don't do anything detrimental.' Relentless uncertainty about the outlook for pensions erodes confidence in them – which can make savers think twice before making such a long-term investment. Things will only get worse as we get closer to the Budget. Chancellors and the Treasury have a habit of stoking rumours about what they might do – to gauge the public response and decide whether or not to go ahead. Think-tanks, financial firms and other invested organisations publish endless papers about what the Chancellor could and should do in the hope of steering her decisions. Speculation mounts, fears grow. It's easy to get caught up in the frenzy. So what to do? For most of us, the best action to take is likely to be none at all. Acting rashly on rumour could leave you worse off than waiting to see what happens. Any changes the Chancellor does make are unlikely to come in immediately, so you should have time to act then if you need to. But it doesn't hurt to do things that are win-win – in other words, that you wouldn't regret regardless of what the Chancellor does or doesn't announce. That means stashing what you can in your Isa, where investment returns, dividends and interest earned are tax-free. It means remembering your pension as well. Tax relief is effectively free money in your long-term savings – an incredibly generous perk – and long may it remain. And it means doing what makes sense in your life, rather than what may prove to be the most tax efficient. Giving away wealth now may help keep it from the Chancellor if she targets inheritance tax, but that's little solace if it leaves you short in older age. Finally, the Chancellor should keep a check on the uncertainty that she's creating among households. If it results in fearful households curbing their spending, making poor financial decisions and a gummed-up housing market, then financial markets won't like that either – and, as always, they'll make her pay.


Scottish Sun
34 minutes ago
- Scottish Sun
British racing to go on strike for first time in its history in protest at betting tax rise with ALL meetings cancelled
Key figures within the sport are opposing a Government proposal RACE IS RUN British racing to go on strike for first time in its history in protest at betting tax rise with ALL meetings cancelled Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) BRITISH racing is set to go on strike for the first time EVER next month. September 10 events at Carlisle, Uttoxeter, Kempton and Lingfield Park are all set to be scrapped. Sign up for Scottish Sun newsletter Sign up 1 Four events are set to be scrapped next month, including at Lingfield Credit: Getty The Treasury have proposed to up taxes paid by bookies on racing profits from 15 to 21 per cent - in line with online casinos. According to The Times, the British Horseracing Authority (BHA) have organised the strike, which could cost the industry around £700,000, in opposition to the proposal. The BHA claim that the proposed change would cost the sector £66million every year and put up to 2,752 people out of a job While they also warned that it would send the sport into "irreversible decline". The proposed strike is set to take place just one day before the start of the St Leger Festival at Doncaster. This means that the issue will be placed at the forefront of the sport by the time the prestigious event, that prime minister Keir Starmer attended alongside his wife last year, comes around. Chief executive of the BHA Brant Dunshea said: "This latest tax bombshell from the Government, if followed through, poses one of the gravest risks to horseracing the sport has ever seen. 'The horseracing industry is already in a precarious financial position, and the latest research provides a much more catastrophic forecast than we first thought. 'We're talking thousands of jobs at risk across the supply chain, severely impacted towns and communities, and the irreversible decline of the country's second most popular sport.' It's claimed that bookies would likely look to increase their prices should the proposal come into effect - while two thirds of punters claim that a tax increase would push people towards the gambling black market. Owners remove £195,000 Grade 2-winning horse from Gordon Elliott's yard with his blessing and send to his protege It's also said that bookmakers would cut their advertising and market budgets - while turning their focus towards online gaming. David Menuisier, a trainer at Coombelands Racing Stables, recently told The Sun: 'Racing is much more than just a sport in this country. 'It brings fun and excitement to millions and is a major local employer, particularly here in West Sussex as we prepare for another fantastic year at Goodwood.'


ITV News
39 minutes ago
- ITV News
UK must bring in sick and injured children from Gaza 'without delay', MPs demand
A cross-party group of 96 MPs have urged the government to bring sick and injured children from Gaza to the UK for treatment "without delay". In a letter to Home Secretary Yvette Cooper, Foreign Secretary David Lammy and Health Secretary Wes Streeting, the MPs warn the health system in Gaza has been "decimated" and that conditions in the territory are "worsening by the minute". More than 50,000 children are estimated to have been killed or injured in Gaza since October 2023, according to Unicef. With "essential infrastructure destroyed" and a long-running blockade by Israel of food, water and medical supplies, they say the population now faces a "medical and humanitarian catastrophe of horrific proportion". Citing World Health Organisation estimates, the letter warns 14,800 Palestinians are "in urgent need of medical evacuation - including children at immediate risk of death from trauma injuries and severe pre-existing conditions, such as cancer and cardiovascular disease.". "Given this grave reality, we urge the government to launch the medical evacuation scheme without delay". The letter, co-ordinated by Labour MP and GP, Dr Simon Opher, welcomes the government "finally prioritising" the issue but calls on senior ministers to "recognise the real urgency around medical evacuations". The group make six key demands of ministers while a scheme is developed: Timeline: MPs ask ministers to confirm the planned timeline for a medical evacuation scheme for Palestinian children. "This should be done in close coordination with the WHO and civil society organisations, with all eligible evacuees and their accompanying family members expedited as a matter of urgency," they add. Medical needs first: " The prioritisation of medical evacuations from Gaza must be determined solely based on clinical necessity and individual case assessment, without regard to financial implications, political considerations or reputational interests," the letter says. Funding: "Large-scale evacuations cannot rely on private donations or diversion of aid from other conflict responses," MPs say. "We urge you to ensure adequate government funding for medical treatment, psychosocial support, housing and other essential costs." Family unification: The 96 MPs say it is "vital" that children are accompanied by parents, close family members or another appropriate caregiver. "There is clear medical evidence to suggest their presence can positively impact the recovery of sick or injured children," they add. Legal status of evacuees: Ministers are asked to clarify the legal status of evacuees upon their arrival in the UK and following completion of medical treatment, including any rights to remain and pathways to settlement."We would urge that children and their families are given the option of applying for asylum, humanitarian protection or the chance to resettle in the UK. Evacuees must not be returned to Gaza," the MPs say. Biometrics:"The requirement for biometrics as a prerequisite to issue visas remains a major barrier, given that the only authorised biometrics centre in Gaza closed in October 2023," the groups warns. "We urge you to waive biometric requirements for evacuees under this scheme and permit applications to be completed after departure from Gaza." ITV News has contacted the government for comment on the MPs demands. Ministers have already started working on plans to evacuate up to 300 seriously ill or injured children from Gaza for NHS treatment in the UK. Prime Minister Sir Keir Starmer said in late June that the government was 'urgently accelerating' efforts to bring children over for treatment. Two weeks ago a government spokesperson said: 'We are taking forward plans to evacuate more children from Gaza who require urgent medical care, including bringing them to the UK for specialist treatment where that is the best option for their care. 'We are working at pace to do so as quickly as possible, with further details to be set out in due course.' Scottish First Minister John Swinney welcomed the move to fly up to 300 children from Gaza but criticised the Westminster government for not taking action sooner. 'We have been consistently clear that the suffering being inflicted on the people of Gaza is beyond any justification.'People in Gaza are being bombed and left to starve by Israel on a massive scale. I wrote to the Prime Minister on 9 July to request support from the UK government in meeting the call from Unicef to provide medical care for children from Gaza.'If the UK government is prepared to evacuate Palestinians for medical treatment it would be entirely only regret is the UK government has taken this long to act."