Latest news with #UniversalCreditandPersonalIndependencePayment
Yahoo
9 hours ago
- Business
- Yahoo
PM repeats 'moral case' for welfare cuts despite major rebellion among Labour MPs
Sir Keir Starmer has reaffirmed his desire to push through controversial benefit cuts despite a mounting rebellion among his own MPs. The prime minister said there was a "clear moral case" for his reforms, which include measures designed to slash £5bn a year from the welfare bill by 2030. PM arrives at NATO summit - follow live While many Labour MPs initially indicated they backed the bill in principle, support has ebbed away over recent months amid warnings about the impact the cuts could have on the most vulnerable in society. More than 100 Labour MPs have now signed a "reasoned amendment" to oppose the government's proposals when they are put to a vote next Tuesday. However, speaking to reporters on the plane to the NATO summit in The Hague, the prime minister reiterated the case for the so-called Universal Credit and Personal Independence Payment (PIP) Bill, despite the building opposition from his own side. "There is a clear moral case, which is the current system doesn't help those who want to get into work," he said. "It traps people." Welfare system 'unsustainable' Sir Keir said around 1,000 people a day were going on to PIP - equivalent to the size of the population of Leicester. "That is not a system that can be left unreformed, not least because it's unsustainable, and therefore you won't have a welfare system for those that need it in the future," he continued. "So those that care about a future welfare system have to answer the question - 'how do you reform what you've got to make sure it's sustainable for the future?'" More from Sky News: On Tuesday, Downing Street suggested the vote would still go ahead despite the public concerns of some MPs - including influential chairs of select committees. Asked whether the government was confident it could pass the legislation, a Number 10 spokesman told reporters: "We are focused on delivering last week's bill and engaging, talking to colleagues, as to why this reform is so important." Pressed on whether the vote was happening next week, they added: "I would never get ahead of parliamentary business. It's scheduled for next week. We are committed to reforming welfare."
Spectator
12 hours ago
- Politics
- Spectator
Labour rebels declare war over Starmer's welfare cuts
It is a year next week since the general election and Labour is marking the occasion with the biggest backbench rebellion of Keir Starmer's premiership. Overnight, scores of Starmer's MPs have signed a reasoned amendment to the Universal Credit and Personal Independence Payment (PIP) Bill. This would effectively kill the Bill at its second reading next Tuesday if it passes through the Commons. Of the 108 Labour MPs who have signed the amendment, ten are Labour select committee chairs. The key message being sent by the rebels is that these are not the so-called 'usual suspects' on the left of the party. Indeed, organisers made a point of adding the names of the Socialist Campaign Group last to the list, to send the message to party whips that dissatisfaction is felt across the whole party. The government is now stuck between a rock and a hard place The full list of names are here and they include the likes of Labour grandee Dame Meg Hillier, the respected chair of the Treasury Select Committee. There are ambitious new MPs too, like Yuan Yang. Adam Jogee and Polly Billington, plus prominent names on the so-called 'soft left' like Rosena Allin-Khan, Stella Creasy and Louise Haigh. They want more consultation on Liz Kendall's reforms, which would spend an extra £1 billion on getting people back to work and reduce the eligibility for PIP. The frustration of the rebels is obvious. Paul Foster, the new MP for South Ribble, is among those to add his name this morning. He wrote on X that he 'attempted to engage privately and behind the scenes' to convey his 'deep rooted concerns' but that he and colleagues 'unfortunately haven't been listened to'. In 17 years as a Labour councillor, 'never before have I been placed in a position where I have ever had to vote against the whip. Never'. Kemi Badenoch, the Tory leader, is keeping her cards close to her chest on how she will instruct her MPs to vote next week. The striking thing from the list of Labour rebels is how many have felt disrespected or sidelined by the Starmer leadership during the past five years. The fact that so many feel strongly enough to publicly break with the government, this early on, will raise questions over the parliamentary management of the 'soft left'. As one puts it, 'if you play stupid games, you win stupid prizes.' The government is now stuck between a rock and a hard place. Politically, it is hard to see how the government can proceed as planned. Fiscally, it is hard to see how they cannot. The OBR expects welfare spending to reach over £100 billion by the end of this parliament. If Keir Starmer cannot trim welfare by £5 billion without wrecking his majority of 156, what chance has he got at serious reform? The one certainty is tax rises. As Paul Johnson of the IFS noted this morning: Another £30 billion on defence. U-turn on winter fuel. Rebellion on plans which just slightly slow huge increases in spending on disability benefits. If spending goes only one way then so, inevitably, will tax. Historic increases already this decade. Looks like a lot more to come. Kendall told MPs last night there was 'no route to social justice based on greater benefit spending alone'. Unfortunately for her, it appears to be an argument that is falling on deaf ears.
Daily Record
6 days ago
- Health
- Daily Record
Full list of DWP changes to PIP and Universal Credit due to start next year
DWP has announced additional protections for millions of vulnerable people on benefits. The Department for Work and Pensions (DWP) says the Universal Credit and Personal Independence Payment (PIP) Bill will provide 13-weeks of additional financial security to existing claimants affected by changes to the daily living component, including those who lose their eligibility to Carers Allowance and the carer's element of Universal Credit. In the Bill published on Wednesday, it states the 13-week additional protection gives people who will be affected by the changes time to adapt, access new, tailored employment support, and plan for their future once they are reassessed and their entitlement ends. DWP said the transitional cover is one of the most generous ever and more than three times the length of protection provided for the transition from Disability Living Allowance (DLA) to PIP. This Labour Government said the key reason for introducing the reforms next year is due to the 'broken social security system' it inherited from the Conservatives, with costs spiralling at an unsustainable rate and millions of people trapped out of work. DWP reasons for implementing reforms The case for change includes: Since the pandemic, the number of PIP awards has more than doubled - up from 13,000 a month to 34,000 a month. That is around 1,000 people signing on to PIP every day. The surge has been largely driven by a substantial increase in the number of people who report anxiety and depression as their main condition. Before the pandemic (in 2019), 2,500 people a month were awarded PIP for these conditions, this has more than tripled to 8,200 a month in 2023. Almost one million young people - 1 in 8 - are not in education, employment or training. 1-in-10 people of working age are now claiming a sickness or disability benefit. Without reform, the number of working age people on disability benefits is set to more than double this decade to 4.3 million. Spending on working age disability and incapacity benefits is up £20 billion since the pandemic and is set to increase by almost that much again by the end of this Parliament, to a staggering £70 billion a year. It's important to be aware that existing claimants will not see the changes until the date of their next review after next November. There are currently over 3.7m people across Great Britain in claim for PIP, however, the UK Government expects that figure to rise to 4m by the end of the decade. Proposed PIP changes Proposed package of reforms to overhaul the welfare system, include: Ending reassessments for disabled people who will never be able to work and people with lifelong conditions to ensure they can live with dignity and security. Scrapping the Work Capability Assessment to end the process that drives people into dependency, delivering on the UK Government's manifesto commitment to reform or replace it. Providing improved employment support backed by £1 billion including new tailored support conversations for people on health and disability benefits to break down barriers and unlock work. Legislating to protect those on health and disability benefits from reassessment or losing their payments if they take a chance on work. To ensure the welfare system is available for those with the greatest needs now and in the future, the UK Government has made decisions to improve its sustainability and protect those who need it most. These include: Reintroducing reassessments for people on incapacity benefits who have the capability to work to ensure they have the right support and are not written off. Targeting PIP for those with higher needs by changing the eligibility requirement to a minimum score of four on at least one of the daily living activities to receive the daily living element of the benefit, in addition to the existing eligibility criteria. Rebalancing payment levels in Universal Credit to improve the Standard Allowance. Consulting on delaying access to the health element of Universal Credit until someone is aged 22 and reinvesting savings into work support and training opportunities through the Youth Guarantee. Work and Pensions Secretary Liz Kendall said: '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. 'This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity. 'This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot - putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.' Universal Credit reforms DWP said that as part of its commitment to protect the most vulnerable and severely disabled, peace of mind will also be given to 200,000 individuals in the Severe Conditions Criteria group - individuals with the most severe and permanently disabling conditions who will never be able to work - as they will not be called for reassessed for Universal Credit under new legislation. Those protected from reassessment will also be paid the higher rate of Universal Credit health top up of £97 per week. DWP also said that in the coming weeks, legislation will also be drafted for a Right to Try Guarantee. This will ensure that trying work will not lead to a reassessment or award review, breaking down barriers to employment. DWP explained: 'Funding will offer personalised employment and health support for individuals on out of work benefits, with 500,000 people having already been supported into employment. This is a quadrupling the level of annual spend on supporting sick and disabled people into work, from the £275m in 2024/25 we inherited, to over £1bn in 2029/30. 'Nearly 4 million households will also receive an income boost with the main rate of Universal Credit set to increase above inflation every year for the next four years - estimated to be worth £725 by 2029/30 for a single household 25 or over. This is around £250 higher than inflation only increases.' The Bill will also rebalance Universal Credit rates by reducing the health element for new claims to £50 from April 2026. To open up opportunities to work, everyone affected by changes to the Universal Credit health element from April 2026 will be offered support from a dedicated Pathways to Work adviser, with 1,000 advisers in place across Great Britain. DWP added: 'All of those affected by reforms will be actively contacted and given the offer of a conversation about their support needs, goals and aspirations; offered one-to-one follow-on support, and given help to access additional work, health and skills support that can meet their needs.'
