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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.'
Daily Record
03-07-2025
- Politics
- Daily Record
Disabled people being left in limbo following 'chaotic' Commons vote on welfare reforms claims Lanarkshire MSP
The Bill initially proposed to slash eligibility for Personal Independence Payment (PIP Motherwell and Wishaw's MSP slammed Labour MPs for showing 'appalling disregard for sick and disabled people' following a 'chaotic' night in the House of Commons prior to the vote on the Bill for welfare reforms. The SNP's Clare Adamson claims that the Westminster chaos over Labour's proposed Universal Credit and Personal Independence Payment Bill was the result of dismissing disabled people. The Bill initially proposed to slash eligibility for Personal Independence Payment (PIP), a move which the government's own analysis showed that 800,000 people would lose support by the end of the decade. After months of backlash from disability and anti-poverty groups, an eleventh-hour change to the bill threw the vote into 'chaos and confusion', and resulted in The UK Government promising a review of PIP to be concluded by autumn 2026, which Ms Adamson says is leaving disabled people in limbo. A revolt by Labour MPs led to 49 of them voting against the motion but that number would have been far higher but for the government making a number of eleventh-hour adjustments to gain support for the Bill. SNP MPs voted against the plans, but only four Labour MPs out of 37 in Scotland eventually voted against the watered-down Bill following a five-hour debate in the House of Commons. Pamela Nash, MP for Motherwell, Wishaw and Carluke, who previously criticised the Tories when they were in government over cuts to disability support, was among those to vote in favour of the Bill. According to the DWP's own figures the undiluted plans would have driven 250,000 people – including 50,000 children – into poverty. The bill had initially proposed to slash eligibility for Personal Independence Payment (PIP), a move which the government's own analysis showed 800,000 people would lose support by the end of the decade. The Scottish Government committed to shield disabled people from Labour cuts by protecting the Adult Disability Payment, Scotland's equivalent of PIP, from any reductions. Adamson has pointed out that any Labour cuts would have a knock-on impact on Scotland's budget. Ms Adamson said: 'Labour has shown an appalling disregard for sick and disabled people whose lives will be affected by their plans. I cannot imagine how it felt for a disabled person to watch as their life and livelihood was bartered in real time. 'Shame on the Scottish Labour MPs who did nothing, those who backed the Bill when it would push 250,000 people in poverty, those who backed the 'deal' which would push 150,000 into poverty and create a two-tiered system. 'And then those who sat on their hands amidst the chaos last night. Chaos which was the direct result of Labour's refusal to meaningfully engage with disability groups; the people who said these plans were wrong from the start. 'The SNP Scottish Government confirmed that Scotland would not follow Labour's lead and would protect Adult Disability Payments. But the message being sent at Westminster matters - as do the spending implications for Scotland. 'These changes were going to be made before a review even took place. That is no way to run a country. Keir Starmer rushed through a deal in order to save his skin. It's indefensible. 'This saga has been characterised by cruelty, at worst, and indifference at best, for the real people affected. Sick and disabled people have been sidelined and now Labour MPs have voted to continue the uncertainty. 'It's time for meaningful engagement with the people affected by these proposals. That should have been done in the first place. This Labour administration is unfit to govern and Scottish Labour MPs showed they are not at the decision table. 'The SNP will always stand up for Scotland. And with the limited powers available to the Scottish Parliament, we will protect sick and disabled people in Motherwell and Wishaw, and across the country. But we need independence to be free of this for good.' *Don't miss the latest headlines from around Lanarkshire. Sign up to our newsletters here.
The Journal
02-07-2025
- Business
- The Journal
Labour Chancellor Rachel Reeves in tears after criticism over major welfare reform u-turn
LABOUR CHANCELLOR RACHEL Reeves appeared to cry in the Commons this afternoon as British prime minister Keir Starmer declined to guarantee she would remain in place until the election. Starmer faced MPs at Prime Minister's Question after being forced to scrap key planks of his welfare reforms. The welfare u-turn has left an almost £5 billion (€5.8b) black hole in Reeves's spending plans and has fuelled speculation she could be forced to hike taxes. Tory leader Kemi Badenoch said Reeves looked 'absolutely miserable' and challenged Starmer to say whether the Chancellor would keep her job until the next election. Watch as Chancellor Rachel Reeves sheds tears during Prime Minister's Questions 📽️ — The National (@ScotNational) July 2, 2025 Starmer dodged the question about whether Reeves would be in place for the remainder of the UK Parliament, saying Badenoch 'certainly won't'. The Tory leader said: 'How awful for the Chancellor that he couldn't confirm that she would stay in place.' Despite Starmer not backing her in the Commons, Downing Street insisted she was 'going nowhere' and had the prime minister's 'full backing'. Asked about Reeves's tears, a spokesman for the Chancellor said it was a 'personal matter'. Welfare u-turn Welfare spending in the UK stood at £40billion before the Covid pandemic but is projected to skyrocket to £100 billion by 2030. In March, reforms to the UK's welfare system – aimed at encouraging more people off sickness benefits and into work – were announced. The aim was to make welfare savings of £4.8 billion by 2029-30. But yesterday, Starmer was forced to abandon a key plank of his welfare reform package in the face of a Labour rebellion. Advertisement The climbdown came just 90 minutes before MPs were due to vote for the first time on the Universal Credit and Personal Independence Payment (Pip) Bill. Universal Credit is a means-tested benefit that replaced and combined six 'legacy' benefits – it is paid to those looking for work, unable to work due to illness or disability, those on a low income or those with caring responsibilities. Meanwhile, Pip is a payment for people who have extra care needs or mobility needs as a result of a disability. With around 1,000 new Pip awards every day, the UK Government argued the current situation was unsustainable. Proposals to cut the health element of universal credit by almost 50% for most new claimants from April 2026 remains in place following yesterday's u-turn. However, the UK Government shelved plans to restrict eligibility for the Pip and any changes will now only come after a review of the benefit, which is due to conclude in the autumn of 2026. The move caused a major headache for Reeves as the welfare squeeze was originally meant to save £4.8 billion a year, which was subsequently reduced to £2.3 billion when the Bill was first watered down last week. But after another concession yesterday, it is uncertain how much the reforms will save from the soaring welfare bill, if anything. Indeed, the Resolution Foundation think tank suggested the concessions meant there would now be no 'net savings' from the reform by the end of the decade. The Bill changed so much in the interim that MPs questioned if there was even any point in voting on it. Tory leader Kemi Badenoch accused Labour of 'utter capitulation' and said the legislation was now 'pointless'. She said: 'They should bin it, do their homework, and come back with something serious. Starmer cannot govern.' A previous effort to kill the Bill had attracted more than 120 Labour supporters, but was dropped after the first partial u-turn on the legislation last week. And in yesterday's vote, Starmer faced a revolt of almost 50 MPs despite the changes, with the legislation clearing its first parliamentary hurdle by 335 votes to 260, a majority of 75. -With additional reporting by Diarmuid Pepper
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
