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Yahoo
a day ago
- Health
- Yahoo
3 reasons why Starmer could U-turn on controversial benefits cuts to PIP
An upcoming vote in the House of Commons on government proposals to cut £5bn from the benefits bill has sparked a rift in the Labour Party. The Labour leader is reportedly facing a growing backbench rebellion over the government's welfare reforms announced in March, with some reports suggesting as many as 100 backbench Labour MPs have signed a letter saying they can not support the proposals as they stand. Some of the party's MPs have been publicly critical. Imran Hussain said 41,000 disabled people in his Bradford East constituency would be affected and that many were 'rightly horrified' by the policy. Neil Duncan-Jordan, the MP for Poole, is one of those to have signed the letter, branding the reforms wrong". I have signed this letter calling for the government to rethink its stance on disability benefits because I think the current plans are need to be listening to people's concerns and I hope things will begin to change. — Neil Duncan-Jordan MP (@NeilForPoole) May 8, 2025 Ahead of the vote (which is expected to take place some time in June) the anger has reportedly led the prime minister to consider softening the proposed reforms – specifically changes to the eligibility rules surrounding the benefits payments to disabled people. Yahoo News takes a look at what's going on. The government has proposed a raft of benefits cuts, predominantly affecting those who are disabled or have a long-term health condition. One of those cuts is to personal independence payments (PIP), a benefit for people in and out of work that helps with the additional costs of living with a disability. The government wants to limit who is eligible by changing the assessment criteria from 2026. It means at least 800,000 disabled people could lose out on payments, according to figures published by the department of work and pensions. The health component of universal credit (UC) is also to be frozen until 2030, with the amount cut in half for new claimants from April 2026. Under-22s who are disabled or have a long-term illness will also no longer be able to claim a health top-up of universal credit from April 2026, with the money saved set to be reinvested by the government into training young people. In total, the cuts will leave 2.25 million households losing out on £500 per year, according to the government's own impact assessment. Some of the government's welfare reforms are open to consultation, with the public being asked to submit their thoughts until 30 June 2025. However, critics have said that only the less serious reforms — like scrapping the work capability assessment for those applying for the health component of universal credit — are open to discussion. In recent weeks, reports have indicated ministers are considering softening the cut. According to the Financial Times, one of the rumoured changes includes making the proposed changes to eligibility for PIP less strict, which could mean 195,000 fewer disabled people are affected by the reforms. Claimants could also get a longer 'transitional period' — from when they are informed their benefits are cut to their benefits stopping — so they have more time to plan for the loss in income, the Times reported. The rumoured changes reportedly hopes to get frustrated MPs onside, who have taken moral objections with the scale and severity of the cuts, the disproportionate impact for voters in the Labour heartlands, as well as the increasingly positive polling for Reform. Several Labour MPs have taken issue with the cuts, voicing their concerns that Labour has historically supported and championed a robust welfare system. According to the Times, 170 backbenchers warned that they may not support the reforms that make it harder to claim PIP as well as cutting incapacity benefits to increase incentives to work. Added to this, it warned that the scale of the cuts had not been seen since George Osborne's austerity reforms, which the party voted staunchly against. Forty-two MPs — including Nadia Whittome, Diane Abbott and Stella Creasy — wrote to the Cabinet earlier this month saying that the reforms were "impossible to support" and called for "a change in direction". The letter reads: 'The planned cuts of more than £7bn represent the biggest attack on the welfare state since George Osborne ushered in the years of austerity and over three million of our poorest and most disadvantaged will be affected. "Without a change in direction, the green paper will be impossible to support.' Another private letter, signed by 100 MPs, said they could not support the government in the disability vote, the Guardian reported. MPs don't just have the party whip to answer to — they are also held to account by their constituents. While the scale of the PIP cuts are clearly far-reaching, the map indicates that the 10 areas most affected by the government's PIP cuts are in Labour heartlands. In fact, out of top 20 areas where claimants are set to miss out on PIP, 19 voted for Labour in the general election — with Clacton voting for Nigel Farage's Reform UK party. In fact, many of the areas are emerging Labour/Reform UK battlegrounds. And, in the wake of Labour's chastening local election results in May, some have pointed the finger at the government's welfare cuts as one of the key drivers of discontent among the party's traditional voting base. 3. Reform are out-positioning Labour on welfare At a national level, Reform UK leader Nigel Farage has pledged to reverse the winter fuel cut and scrap the two-child benefit cap if the party came to power in a naked attempt to target Labour's perceived weakness in the area of welfare. And while the government has signalled a partial U-turn on the winter fuel payment, it continues to dodge calls from campaigners and MPs to ditch the cap. Overall, the most recent YouGov poll seems to indicate the public are also losing faith in Labour on welfare issues, with 69% saying the government is handling welfare issues badly. A DWP spokesperson said: "We are determined to create a welfare system that supports people into work and out of poverty. 'At the heart of the government's reforms is £1bn scheme to help the long-term sick or disabled find good, secure jobs. 'Our Plan for Change will change people's lives for the better. That is why we have raised the national living wage, increased benefits, and given additional help to the poorest households.'


Business Mayor
10-05-2025
- Politics
- Business Mayor
PIP claimants that ‘shouldn't be affected by reform' could still be at risk experts warn
The changes will make thousands of people currently getting PIP ineligible for the benefit (Image: GETTY) A loophole in new DWP PIP criteria could expose people to losing their benefits, according to an advice organisation. Last month, Disability Minister Stephen Timms responded to a written parliamentary question regarding the changes to PIP eligibility announced by the government in March. Labour MP Neil Duncan-Jordan had inquired about the impact of these changes on PIP claimants of retirement age. Sir Stephen offered reassurance, stating: 'In keeping with existing policy, people over State Pension Age are not routinely fully reviewed and will not be affected by the proposed changes.' He also confirmed that the new eligibility criteria would only apply to reviews and claims made after November 2026. Many people welcomed this confirmation at the time, which was intended to alleviate concerns for approximately 700,000 state pension age PIP claimants, according to the Mirror. However, Benefits and Work has identified a loophole that could still subject these individuals to the new criteria, potentially resulting in the loss of their benefit. The benefit experts cautioned: 'The phrase 'not routinely fully reviewed' is deeply ambiguous. It is true that claimants over pension age are likely to have a light-touch review. 'This involves the shortened AR2 review form and will not normally require the claimant to have a face-to-face or telephone assessment. But the AR2 form still asks the claimant if there have been any changes in their daily living needs since their last assessment.' PIP claims are reviewed to check if the claimants disability and circumstances have changed (Image: GETTY) After November 2026, people who do not meet the new eligibility criteria and respond 'no' on this form may technically disqualify themselves by highlighting that they don't meet the criteria. If they answer 'yes', it could initiate a new review, which will also be evaluated against the new criteria. This loophole could leave state pension age PIP claimants in a difficult position, but the experts have reassured: 'We don't want to alarm pension age PIP claimants. Reviews after pension age are much less frequent, so most claimants may not be affected. However, it seems that tens of thousands a year might be. 'Pension age PIP claimants will certainly be impacted by the Green paper changes. The only way to avoid this would be to specify that the new points system regulations will exempt pension age PIP claimants.' They encouraged people to ask their local MPs to urge the minister to clarify his statement. Many details about the Green Paper are still unknown and open for consultation, including transitional protection so this gap for state pension age claimants could still be addressed in the future. The loophole could mean people assured the change won't affect them could be at risk of losing their benefit (Image: GETTY) What has been confirmed in detail are the proposed changes to PIP eligibility criteria. At present, applicants need to score at least eight points across 10 activities to receive the standard rate of the daily living component of PIP and 12 points to get the enhanced rate. The more assistance or equipment you require to carry out these activities safely and efficiently, the more points you can accumulate in each category. The updated criteria will still necessitate these minimums, but if individuals fail to score at least four points in any one category, they won't qualify for the daily living component at all. It remains uncertain how those who currently qualify and receive PIP but don't meet this criteria will be supported during the transition. The consultation is particularly open to disabled individuals and disability organisations in England, Scotland and Wales.


Wales Online
10-05-2025
- Business
- Wales Online
DWP shares update on powers to check benefit claimant's bank accounts
DWP shares update on powers to check benefit claimant's bank accounts New legislation would allow the DWP to monitor the bank accounts of people claiming benefits and it's already passed in one of the final hurdles to becoming law The Department for Work and Pensions (DWP) has provided an update on its intention to scrutinise the bank accounts of benefits claimants. The Labour Party's Fraud, Error and Debt Bill is currently progressing through Parliament and is expected to be enacted later this year. The bill will grant the DWP new, far-reaching powers to tackle fraud within the social security system. One of these new and contentious powers will allow the DWP to examine the bank accounts of those suspected of having more funds than they declare and to recoup benefit debts. Another provision would enable the department to suspend driving licences. Both proposals were approved at the third reading of the Public Authorities (Fraud, Error and Recovery) Bill on Tuesday, April 29, bringing the government a step closer to officially introducing these measures. Under the proposed legislation, banks and other financial institutions will be required to cooperate with government requests to share data to detect benefit fraud. However, the government has assured that the DWP will not have direct access to individuals' bank accounts and will not disclose their personal information to third parties, reports the Mirror. The bill has now reached the House of Lords and has undergone its first reading. The second reading is scheduled for May 15. However, there is some discord within the Labour Party regarding these measures, with several members voting for amendments aimed at restricting the DWP's ability to inspect accounts. Article continues below The Liberal Democrats have warned that the Bill could result in "Orwellian levels of mass surveillance of those who have means-tested benefits." For money-saving tips, sign up to our Money newsletter here . In the Commons during the third reading, Work and Pensions Secretary Liz Kendall remarked: "Delivering our plan for change means ensuring every single pound of taxpayers' money is wisely spent and goes to those in genuine need. "That is what this legislation will help deliver, with the biggest ever crackdown on fraud against the public purse." Labour MP for Poole Neil Duncan-Jordan, in a parliamentary debate, advocated for his amendment which would restrict the government's power to scrutinise a claimant's financial records. His amendment stipulated that the government should only probe the accounts of individuals it "has reasonable grounds to suspect has committed, is committing or intends to commit" an offence. Addressing fellow MPs, he expressed: "The Bill rightly seeks to tackle organised crime and online fraud, but also worryingly ushers in dangerous new powers compelling banks to trawl through financial information." He continued: "It is the very poorest in our society which are going to be affected most by this legislation. So banks will be able to trawl for financial information even where there is no suspicion of wrongdoing. That's the key point in this debate." Labour's Work and Pensions Minister Andrew Western has contested arguments regarding an amendment, insisting it would sabotage the new authority designed to authenticate individuals' benefit eligibility. He said: "We do require this power because it will enable better data sharing between the private and public sector to help check claimants are meeting the criteria for their benefits and to detect incorrect payments at an earlier stage before any suspicion of wrongdoing has arisen." Adding clarity, he continued: "It is not a power to be used to respond to suspected fraud. Information will not be shared with the DWP under the assumption that a claimant is guilty of any wrongdoing. The DWP must look into why the account has been flagged by the bank and ascertain whether an incorrect payment has been made." Article continues below He emphasised the DWP's commitment to further investigations to confirm whether benefits had been wrongly distributed, pointing to fraud or error as possible causes. Despite support from 10 Labour MPs for Duncan-Jordan's amendment, it was ultimately defeated in a vote—with a sizeable majority of 153, where 238 members voted against and only 85 supported it.


Daily Mirror
09-05-2025
- Politics
- Daily Mirror
PIP claimants that ‘shouldn't be affected' could still be at risk
700,000 people were recently told the changes won't affect them, but a loophole may mean it does A loophole in new DWP PIP criteria could expose people to losing their benefits, according to an advice organisation. Last month, Disability Minister Stephen Timms responded to a written parliamentary question regarding the changes to PIP eligibility announced by the government in March. Labour MP Neil Duncan-Jordan had inquired about the impact of these changes on PIP claimants of retirement age. Sir Stephen offered reassurance, stating: "In keeping with existing policy, people over State Pension Age are not routinely fully reviewed and will not be affected by the proposed changes." He also confirmed that the new eligibility criteria would only apply to reviews and claims made after November 2026. Many people welcomed this confirmation at the time, which was intended to alleviate concerns for approximately 700,000 state pension age PIP claimants, according to the Mirror. However, Benefits and Work has identified a loophole that could still subject these individuals to the new criteria, potentially resulting in the loss of their benefit. The benefit experts cautioned: "The phrase 'not routinely fully reviewed' is deeply ambiguous. It is true that claimants over pension age are likely to have a light-touch review. "This involves the shortened AR2 review form and will not normally require the claimant to have a face-to-face or telephone assessment. But the AR2 form still asks the claimant if there have been any changes in their daily living needs since their last assessment." After November 2026, people who do not meet the new eligibility criteria and respond 'no' on this form may technically disqualify themselves by highlighting that they don't meet the criteria. If they answer 'yes', it could initiate a new review, which will also be evaluated against the new criteria. This loophole could leave state pension age PIP claimants in a difficult position, but the experts have reassured: "We don't want to alarm pension age PIP claimants. Reviews after pension age are much less frequent, so most claimants may not be affected. However, it seems that tens of thousands a year might be. "Pension age PIP claimants will certainly be impacted by the Green paper changes. The only way to avoid this would be to specify that the new points system regulations will exempt pension age PIP claimants." They encouraged people to ask their local MPs to urge the minister to clarify his statement. Many details about the Green Paper are still unknown and open for consultation, including transitional protection so this gap for state pension age claimants could still be addressed in the future. What has been confirmed in detail are the proposed changes to PIP eligibility criteria. At present, applicants need to score at least eight points across 10 activities to receive the standard rate of the daily living component of PIP and 12 points to get the enhanced rate. The more assistance or equipment you require to carry out these activities safely and efficiently, the more points you can accumulate in each category. The updated criteria will still necessitate these minimums, but if individuals fail to score at least four points in any one category, they won't qualify for the daily living component at all. It remains uncertain how those who currently qualify and receive PIP but don't meet this criteria will be supported during the transition. The consultation is particularly open to disabled individuals and disability organisations in England, Scotland and Wales.


Daily Mirror
01-05-2025
- Business
- Daily Mirror
DWP shares update on new powers to snoop on benefit claimant bank accounts
One of these new powers - and it's most controversial - will give the DWP access to bank accounts of those suspected of having more money than they say and to recover benefit debts. The Department for Work and Pensions (DWP) has issued an update on its plans to monitor bank accounts of benefit claimants. Labour's Fraud, Error and Debt Bill is currently making its way through Parliament and is set to come into force later this year. The legislation is set to give the benefits department new and extensive powers to help it crackdown on fraud within the social security system. One of these new powers - and it's most controversial - will give the DWP access to bank accounts of those suspected of having more money than they say and to recover benefit debts. Another power would allow the department to freeze driving licences. Both proposals received the green light at the third reading of the Public Authorities (Fraud, Error and Recovery) Bill on Tuesday, April 29. This means the government is edging closer to officially implementing the measures. Under the plans, banks and other financial institutions will need to comply with government requests to share data to identify benefit fraud. However, the government has confirmed that DWP will not have access to people's bank accounts and will not share their personal information with third parties. The legislation has reached the House of Lords, and has received its first reading. The second reading is set for May 15. However, the Labour Party is not all in agreement on the measures, with several voting for amendments aimed at limiting the benefits department's ability to check accounts. The Liberal Democrats also cautioned that the Bill could lead to "Orwellian levels of mass surveillance of those who have means-tested benefits." Addressing Parliament during the third reading, Work and Pensions Secretary Liz Kendall stated in the Commons: "Delivering our plan for change means ensuring every single pound of taxpayers' money is wisely spent and goes to those in genuine need. "That is what this legislation will help deliver, with the biggest ever crackdown on fraud against the public purse." Join Money Saving Club's specialist topics For all you savvy savers and bargain hunters out there, there's a golden opportunity to stretch your pounds further. The Money Saving Club newsletter, a favourite among thousands who thrive on catching the best deals, is stepping up its game. Simply follow the link and select one or more of the following topics to get all the latest deals and advice on: Travel; Property; Pets, family and home; Personal finance; Shopping and discounts; Utilities. During a parliamentary session, Labour MP for Poole Neil Duncan-Jordan pushed for a vote on his amendment, which limited the government's ability to access a claimant's financial records. The proposed amendment said the government should only investigate accounts of individuals it "has reasonable grounds to suspect has committed, is committing or intends to commit" an offence. Speaking to the Commons, the Labour MP said: "The Bill rightly seeks to tackle organised crime and online fraud, but also worryingly ushers in dangerous new powers compelling banks to trawl through financial information." He added: "It is the very poorest in our society which are going to be affected most by this legislation. So banks will be able to trawl for financial information even where there is no suspicion of wrongdoing. That's the key point in this debate." Labour's Work and Pensions Minister Andrew Western argued against the points by stating that the amendment would "undermine" the new power intended to verify individuals' eligibility for benefits. He explained: "We do require this power because it will enable better data sharing between the private and public sector to help check claimants are meeting the criteria for their benefits and to detect incorrect payments at an earlier stage before any suspicion of wrongdoing has arisen." He then added: "It is not a power to be used to respond to suspected fraud. Information will not be shared with the DWP under the assumption that a claimant is guilty of any wrongdoing. The DWP must look into why the account has been flagged by the bank and ascertain whether an incorrect payment has been made." Western reiterated that the DWP would make further enquiries to determine whether a benefit had been incorrectly paid due to fraud or error. Duncan-Jordan's amendment was supported by 10 fellow Labour MPS. However, it was defeated by a 153-vote majority, with 238 votes against and 85 in favour.