Latest news with #PersonalIndependencePaymentBill
The National
03-07-2025
- Business
- The National
Keir Starmer faces fresh rebellion threat over Universal Credit cut
Backbencher Richard Burgon has tabled an amendment to the Universal Credit and Personal Independence Payment Bill to prevent the cut to the health component of the benefit. The current bill, which was gutted of controversial cuts to Personal Independence Payments (Pip) in a last-minute U-turn, still retains the reduction in the health top-up of Universal Credit. As it stands, the extra payment is set to be cut for new claimants from £97 per week to £50 per week – a reduction to £217.26 per month. READ MORE: Rachel Reeves breaks silence on tears in the House of Commons Burgon's amendment would reverse this cut, keeping the health element at its current rate of £423.27. It is estimated the UK Government's changes would affect more than 750,000 people and result in an annual loss of income of £3000 per person. It is understood the amendment has the backing of more than 25 MPs, including 20 Labour MPs. If selected for debate when the Commons debates the remaining stages of the welfare bill on Wednesday, it could trigger yet another bruising backbench rebellion for Keir Starmer. READ MORE: PM takes blame for welfare U-turn as he gives full backing to Chancellor The Prime Minister's authority was dealt a blow earlier this week when the threat of a substantial rebellion saw the UK Government scrap much of its welfare bill mid-debate. Burgon said: 'Despite welcome promises regarding Pip, a huge cut for sick and disabled people remains at the heart of this Bill. 'This cruel and unnecessary halving of the Universal Credit health element will see £2 billion per year slashed from vital support that sick and disabled people rely on. 'The Government needs to scrap this proposal. There should be no two-tier system for disability support.'
The Herald Scotland
02-07-2025
- Business
- The Herald Scotland
Why Reeves was left in tears at Prime Minister's Questions
The Chancellor, in the words of Kemi Badenoch, looked 'absolutely miserable.' No wonder. Sir Keir Starmer's last-minute decision to gut his Universal Credit and Personal Independence Payment Bill has left her with tough choices ahead. Read More: The Bill was supposed to bring down welfare spending by £5 billion — now it's going to cost millions. It has also undermined the Chancellor's position. She faced down Cabinet opposition to the reforms, telling reporters during a visit to Babcock in Rosyth in March that the Government needed to 'get a grip' on the ballooning welfare bill. Tuesday's last-minute decision to U-turn on plans to make it tougher to apply for Personal Independence Payment leaves her with no grip at all. If she wants to keep her fiscal rule — that current spending must be paid for from tax receipts — she now only really has two options: hike taxes, or implement swingeing spending cuts. 'Labour MPs are going on the record saying that the Chancellor is toast, and the reality is that she is a human shield for his incompetence,' said Badenoch during PMQs. 'In January, he said that she would be in post until the next election. Will she really?' she asked. Sir Keir, incredibly, avoided the question. It was only an hour later that No 10 said the Chancellor is going nowhere. 'The Chancellor is going nowhere. She has the Prime Minister's full backing,' a spokesperson said. 'He has said it plenty of times — he doesn't need to repeat it every time the Leader of the Opposition speculates about Labour politicians. 'The Chancellor and the Prime Minister are focused entirely on delivering for working people. 'It's thanks to the Chancellor's management of the economy that we managed to restore stability, which has led to four interest rate cuts, wages rising faster than inflation, and she recently delivered a spending review that invested in Britain's national renewal.' As the Government — with its 165-seat majority — stumbles towards its first year in office, battered by U-turns, self-inflicted wounds, it does not necessarily feel like stability has been restored. And there aren't just questions over the future of the Chancellor but the Prime Minister himself. Bookies Coral have Sir Keir odds-on at 8/11 not to be leader of Labour at the next general election.
STV News
02-07-2025
- Business
- STV News
Keir Starmer to face PMQs after watered-down welfare reforms vote
Keir Starmer is set to face questions in the Commons on Wednesday amid the fallout from his watered-down welfare reforms. The Prime Minister's Universal Credit and Personal Independence Payment Bill passed its first hurdle on Tuesday night, with MPs voting 335 to 260 in favour. However, it was a hollowed-out version of the initial proposals. Starmer's welfare reforms originally wanted to cut Universal Credit health top-ups for new claims from April 2026, review Personal Independence Payment (PIP) assessments, and 'focus PIP on those with higher needs'. The cuts to Universal Credit would have directly impacted benefit claimants in Scotland, while the other changes would have impacted the amount of money coming to Social Security Scotland for devolved benefits. However, 126 Labour backbenchers signed an amendment last week to halt the welfare reform legislation. The rebels argued that the plans were rushed and would push vulnerable disabled people into poverty. Starmer's government was forced to backtrack not once but twice before the crucial vote on Tuesday. Under the concessions, PIP claimants will continue to receive the benefits they currently get, as will recipients of the health element of universal credit. Then, on Tuesday evening, just hours before the vote, disability minister Sir Stephen Timms conceded that changes to PIP will not take place until after a review of the benefit has concluded. Starmer is likely to face questions and scrutiny from opposition leaders about these last minute changes, and about his leadership of the Labour party. PMQs will be live from the House of Commons at noon on Wednesday. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
STV News
01-07-2025
- Business
- STV News
MPs vote through Starmer's watered-down welfare reforms
MPs have voted through Keir Starmer's welfare reforms in the House of Commons, which will shake up disability benefits. Tuesday's vote saw the Prime Minister's Universal Credit and Personal Independence Payment Bill pass its first hurdle, with MPs voting 335 to 260 in favour. In a late climbdown as MPs prepared to vote, the Government shelved plans to restrict eligibility for the personal independence payment (PIP), with any changes now only coming after a review of the benefit. The bill was a watered-down version of initial proposals made by Starmer, which campaigners claimed would plunge hundreds of thousands of people into poverty. A Labour rebellion followed, with more than 120 MPs signing a wrecking agreement to the proposed bill. As a result, Starmer was forced into a U-turn in a bid to stave off a rebellion among his party. The welfare reforms originally proposed to cut Universal Credit health top-ups for new claims from April 2026 and scrap the Work Capability Assessment. The reforms also vowed to review Personal Independence Payment (PIP) assessments and 'focus PIP on those with higher needs', while consulting on plans to delay access to the health top-up in Universal Credit until claimants turn 22. The cuts to Universal Credit would have directly impacted benefit claimants in Scotland, while the other changes would have impacted the amount of money coming to Social Security Scotland for devolved benefits, like Adult Disability Payments, which replaced PIP for Scots. The Scottish Government would have been responsible for making decisions about welfare and disability benefits based on its budget. However, Labour rebels argued the plans were rushed and would push vulnerable disabled people into poverty. Following a government U-turn, work and pensions secretary Liz Kendall said PIP claimants will continue to receive the benefits they currently get, as will recipients of the health element of Universal Credit. She said the planned benefit cuts will only hit future claimants. Campaigners accused the latest proposals of creating a two-tier benefits system, and official government analysis released on Monday showed the reforms would still push 150,000 people into relative poverty across the UK, rather than the 250,000 first suggested. Despite the U-turn, two Scottish Labour MPs, Brian Leishman and Maureen Burke, signalled their intention to vote against the cuts. More to follow. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The National
01-07-2025
- Politics
- The National
Major disability benefit cuts delayed in concession to Labour rebels
Changes to Personal Independence Payments (PIP) have been delayed after a last-minute compromise was offered to restive Labour MPs. In an unusual move, Social Security Minister Stephen Timms confirmed during the debate on the Universal Credit and Personal Independence Payment Bill that the Government was removing the controversial rule changes for Personal Independence Payment (Pip) claimants. Changes will only be made after he concludes his review, to be carried out with disability charities and expected next autumn, into changing eligibility thresholds. The Government had planned to change the rules with Tuesday's vote so that new Pip claimants can only qualify for the benefit if they score at least a four in one category of the assessments of disability. People will still need to score at least eight points across 10 categories measuring their ability to carry out daily tasks like washing themselves and dressing. But the proposed changes have led to charges that the Government is creating a "two-tier" system, because those currently claiming PIP will keep their benefits while new claimants will be subject to tougher rules. Critics have also said it is unfair that people with difficulties carrying out daily tasks will be disadvantaged because they struggle across the piece rather than particularly in one area. Intervening in the debate, Timms noted that Labour MPs had "raised concerns that the changes to Pip are coming ahead of the conclusions of the review of the assessment that I will be leading". He added: "We have heard those concerns, and that is why I can announce that we are going to remove the clause five from the Bill at committee, that we will move straight to the wider review, sometimes referred to as the Timms review, and only make changes to Pip eligibility activities and descriptors following that review."
