Latest news with #benefitsreform
The Sun
30-07-2025
- Health
- The Sun
The nine health conditions most at risk of being hit by Universal Credit and PIP cuts
SOME disabled Universal Credit claimants face cuts to their payments when new Government rules come in, campaigners have warned. Labour is planning to bring in major reforms to the benefits system that will see Universal Credit payments slashed for new claimants. 1 A bill intended to cut back on welfare spending was heavily watered down last month following a rebellion by backbench MPs. But some MPs and disability campaigners are still warning benefit claimants with serious, lifelong illnesses could see their out-of-work benefits halved under the reforms. They are worried people with degenerative conditions such as Parkinson's and multiple sclerosis (MS) could be affected, as well as those with serious mental health conditions such as bipolar disorder and schizophrenia. The campaigners say people with these conditions could miss out on the Universal Credit health element, which is worth about £3,000 a year. MPs on the Work and Pensions Committee have called for the cut to be paused until an independent impact assessment on the changes can be carried out. Andy McDonald, Labour MP for Middlesbrough and Thornaby East, told The i newspaper that ministers should look again at the criteria for the higher rate of Universal Credit. "The bill creates a two-tier system which will result in people with identical conditions being treated entirely differently, based on an arbitrary cut-off point. "There is no justice or equity in that. It's simply not the right thing to do," he said. Ian Byrne, Labour MP for Liverpool West Derby, said it was "reckless to go ahead with the planned cuts" without an impact assessment. Meanwhile James Taylor, head of strategy at disability equality charity Scope, said: "We are concerned that the changes to the health component of Universal Credit will create a two-tier system where some disabled people receive more support than others. "We believe this approach is unfair and that it does not reflect the realities of disabled people's lives." What is Universal Credit and what changes are being made? Universal Credit is a monthly payment given out to those who are struggling to make ends meet. Changes to UC & PIP payments in full as Labour reveals bruising welfare bill concessions in bid to quell rebellion More than three million recipients of Universal Credit don't have to find work due to their poor health. A single person who is aged 25 or over can receive the basic level of Universal Credit, which comes in at £400.14 every month. But you can get a further £422.37 by claiming the incapacity top-up if you have a disability or long-term condition. This more than doubles the original payment. People who currently receive Universal Credit will be protected from changes to the Welfare Reform Bill. But new claimants will have their payment halved to £217.26. Only new claimants who meet a "severe conditions criteria" will get the full amount - so those with severe, lifelong conditions will remain protected. However, disability groups have warned that those with degenerative illnesses or fluctuating conditions, which can vary day to day, might still have their payments slashed. This is because the new criteria demands a health condition be constant. Which conditions could be affected? There is no full or official list of conditions that could be affected by the change as the "severe conditions" criteria hasn't yet been fully decided. But anti-poverty charity Z2K has said there are at least six health conditions it believes could be affected by the change. They are: Parkinson's Schizophrenia Multiple sclerosis Bipolar disorder Autism Dementia A select committee report on the matter also mentions ME, Premenstrual Dysphoric Disorder (PMDD) and eating disorders. Its understood claimants will not be assessed on what their condition is but on how it impacts them. No conditions are excluded from the "severe conditions" criteria and it will be considered for all health conditions and disabilities. Ayla Ozmen, director of policy and campaigns at Z2K, told The Sun: "Disabled people with conditions like Parkinsons, schizophrenia and multiple sclerosis are at risk of losing out on over £200 per month as a result of cuts to the Universal Credit health element which have been approved by parliament. "Contrary to government claims, we fear that many of the disabled people affected will never be able to work because of their conditions. "We're calling on the government to clarify how it will ensure that disabled people with severe conditions will be protected under these plans." A Government spokesperson said: "Our welfare reforms will support those who can work into jobs and ensure there is always a safety net for those that need it. The impact assessment shows our reforms will lift 50,000 children out of poverty – and our additional employment support will lift even more families out of poverty. "The reforms will rebalance Universal Credit rates to reduce the perverse incentives that trap people out of work, alongside genuinely helping disabled people and those with long-term health conditions into good, secure work – backed by £3.8billion in employment support over this parliament. "We are also tackling poverty by extending free school meals to all households on Universal Credit, helping to address holiday hunger with our Crisis and Resilience Fund, supporting over a million households by introducing a Fair Repayment Rate on Universal Credit deductions, and delivering the biggest increase in social and affordable housebuilding in a generation, as part of our Plan for Change." What other changes are being made? The Government had hoped to bring in even tougher measures to stop the increasing cost of welfare from spiralling out of control. It previously projected the number of working-age claimants of Personal Independence Payments (PIP) will rise from 2.7million in 2023-24 to 4.3million in 2029-30. Meanwhile the Office for Budget Responsibility (OBR) estimated the overall cost of the working-age benefit system would rise from £48.5billion last year to £75.7billion by 2030. As part of its Welform Reform Bill, the Government had planned to introduce stricter qualifying measures for those claiming PIP and freezing the extra health payments available to those on Universal Credit who are unable to work. An FOI carried out by advice website Benefits and Work showed a staggering 154,000 people with back pain as their main health issue were likely to lose their PIP under Labour's stricter rules. Some of the other conditions at risk included arthritis, chronic pain, cardiovascular disease, respiratory disease, anxiety and depression. But following the backlash from MPs, it's unclear so far how PIP could change as a review is now going to be carried out by disability minister Sir Stephen Timms. The paper, which will not be published until the end of next year, will set out recommendations for the Government.
Telegraph
01-07-2025
- Business
- Telegraph
Labour's ‘clusterf--- of Godzilla proportions' ... so whose head will roll?
The benefits reforms passed in the House of Commons on Tuesday are a pale imitation of the package first announced by the Government in March. Two significant concessions to rebels by Sir Keir Starmer have shaved billions off the savings the Bill was estimated to make from tightening up benefit rules. The claimants his Work and Pensions Secretary once said were 'taking the Mickey' out of the system will not see any change to their entitlement, and new claimants will be accepted under the existing rules until at least autumn 2026. The revolt of dozens of Labour MPs has left Sir Keir with an angry party, far fewer reforms than he hoped, and a black hole in the public finances worth billions of pounds. 'It makes the entire thing a total clusterf--- of Godzilla proportions,' said one MP on Tuesday night. 'Only the Gods know how this cobbled-together Bill does anything it's supposed to anymore.' A morose minister added: 'Today is not a good day.' Downing Street is expected to make some changes to its operation as a result of the carnage. Labour rebels are divided on who is responsible for the debacle. But the list of those in the dock is lengthy. Sir Keir Starmer Some Labour MPs say the Prime Minister himself is responsible for the failure to keep his party in line. They argue that it has been clear since March, when the plans were first announced by Liz Kendall, the Work and Pensions Secretary, that they were never going to fly with the Labour backbenchers. Sir Keir has been accused of failing to keep in touch with his MPs, refusing to attend the Commons for votes, and trying to railroad his party into backing reforms without first earning their loyalty. 'Talking to colleagues and backbenchers, he has been very absent,' one minister said. 'This has been a problem all along.' There are few in the party who would call for Sir Keir to stand down – even privately – but there is a sense among MPs that he must take overall responsibility for mismanaging one of the most important policies of his administration so far. He worsened the situation at the weekend, when he told The Sunday Times that the rebellion had only been allowed to grow because he was too concentrated on what was happening in the Middle East. 'There's a lot of resentment in the party towards Keir,' one Labour MP admitted. Rachel Reeves The self-described 'Iron Chancellor' is also receiving a lot of flak from Labour insiders as the politician who most resisted making changes to the welfare reforms. When the original 'wrecking' amendment emerged early last week, insiders say it was Ms Reeves who urged No10 to hold off on making any concessions. But that strategy only enraged MPs more, blowing the rebellion up into a crisis and triggering talk of an existential challenge for Sir Keir. In the end, she was visiting a JCB factory when the decision was made to concede and let existing benefit claimants keep their entitlement. The fact she was not in the room when a fresh hole was blown in her Budget does not bode well for the Chancellor. Ms Reeves is now in an unenviable position. She will have to increase taxes significantly later in the year to account for a total shortfall of about £40bn – including about £3bn created by these about-turns on welfare policy. That will only make her more unpopular with the public, and there are now few Labour MPs who would go out and defend her. Liz Kendall The Work and Pensions Secretary was not a popular figure among the Labour faithful before taking office last July, having finished fourth in her run for the party leadership in 2015. She is viewed as a Blairite, and while her politics matches the more Right-leaning instincts of Sir Keir and his advisers, she has not broken into the clique of senior ministers who receive greater access to the Prime Minister, insiders say. Since the beginning of the year, Ms Kendall has been given the 'hospital pass' of implementing Labour's welfare reforms – a much-needed brake on the relentless increase of Britain's social security budget. Back in March, the proposals leaked to the media before they could be properly 'pitch-rolled' by Downing Street, stoking an almighty row with Left-wing backbenchers. MPs then claimed the Bill was rushed and poorly drafted, allowing senior Labour figures including Dame Meg Hillier, the chairman of the Treasury select committee, to rip them apart. There was a curious sense of history repeating itself on Tuesday, as Labour old-timers remembered the biggest rebellion of Sir Tony Blair's first premiership, when 47 MPs voted against changes to lone parent benefit. His social security secretary was Baroness Harman, who had employed Ms Kendall as a special adviser to manage her relationship with MPs and the press. Morgan McSweeney The Irish svengali at the heart of the Downing Street operation was blamed, as usual, when something went seriously wrong with one of Sir Keir's flagship policies. Mr McSweeney is widely regarded as a campaigning genius, but his critics say he would be better deployed in a more political role at Labour headquarters, than running the nexus of government as Downing Street chief of staff. On Tuesday morning, Sir Keir was forced to tell the Cabinet to stop briefing against his closest adviser, after negative stories about McSweeney reached a fever pitch at the weekend. 'We will not resile from our record of achievement and we will not turn on our staff – including our chief of staff – without whom none of us would be sitting around this cabinet table,' he told ministers, according to The Times. Speaking to The Telegraph, one minister said Mr McSweeney was responsible for the 'woeful' management of MPs and had 'been in a bunker with his head down'. Many MPs say they don't know Mr McSweeney, but think of him as a sinister and arrogant figure, controlling the Government from the inside. His supporters say he attracts criticism and media coverage simply because he is better known than his colleagues. Claire Reynolds On paper, it is easiest to blame Claire Reynolds for the disastrous 'political management' of the backbenchers in the lead-up to Tuesday's vote. The little-known Downing Street appointee is responsible for liaising between Labour MPs and the Government, suggesting ways for the Cabinet to engage with the party and, in short, keeping everyone happy. But the failure to persuade MPs that they should remain loyal to No10 was the most significant issue for Sir Keir in passing his reforms, which now lie in tatters. 'They now have a smoking ruin of a Bill that they've had to shred to head off a rebellion,' one Labour MP said. 'How did a 100-plus majority come to this?' Some MPs say they have never met or spoken to Ms Reynolds, a former Labour official (and wife of Jonathan Reynolds, the Business Secretary) who is in charge with assuaging their concerns. One Labour rebel said that simply being invited into Downing Street occasionally might have made them less likely to vote against the Government – which she could have organised.
Daily Mail
01-07-2025
- Business
- Daily Mail
Starmer boasts of 'real sense of pride' at marking first year in power... as he faces biggest Labour revolt yet, Channel boats hit grim new record, and taxes are set to rise AGAIN
Keir Starmer boasted of his 'real sense of pride and achievement' at marking his first year in power today - despite being engulfed in crisis on multiple fronts. The PM 'reflected' on the looming anniversary of his July 4 election landslide as he gathered Cabinet. However, Sir Keir's upbeat tone came as the government looks down the barrel of its biggest revolt yet, with dozens of MPs preparing to vote against benefits reforms tonight. He was reportedly forced to issue a warning at the meeting that briefing against his chief of staff Morgan McSweeney must stop. Channel migrants have already hit 20,000 this year, the earliest the tally has been reached. Meanwhile, there are mounting fears that Rachel Reeves will have to hike taxes again this Autumn as the economy stalls and angry MPs force U-turns wrecking her plans to balance the books. Polls have shown the government's popularity nosediving since securing one of the biggest majorities in modern UK politics. Nigel Farage's Reform are now enjoying a clear advantage in support, with panic rising in Labour circles about Sir Keir's leadership. London and Manchester Mayors Sadiq Khan and Andy Burnham are said to be on manoeuvres, while Angela Rayner's allies are also talking up her credentials. Work and Pensions Secretary Liz Kendall has been trying to quell Labour unrest on benefits The premier caused more dismay at the weekend by backtracking on his 'island of strangers' remark about the dangers of uncontrolled immigration. Surveys showed the striking comment had been well-received by Brits. But Sir Keir admitted he regretted making it as he was accused of echoing Enoch Powell. A readout of the Cabinet meeting from No10 said the PM took the opportunity to 'reflect on the last year in office, saying we could all rightly look back with a real sense of pride and achievement'. 'The Prime Minister said that because of tough decisions the Government had taken, it had a platform to build on, with three trade deals, the spending review that was well received by the public and an industrial strategy received well by businesses, both large and small,' the No10 spokesman said. 'He pointed to a cut in NHS waiting lists, more than 4million extra appointments, investment in transport, major infrastructure decisions, funding for social and affordable housing, extending free school meals and introducing free breakfast clubs.' The spokesman also pointed to the 'four interest rate cuts in a row while global firms were choosing to back Britain', and the exemptions from US tariffs for the car and aerospace industries which 'meant the world to Jaguar Land Rover workers'. The spokesman added: 'He said the Government's work is all designed and focused on improving the lives of working people and giving them the chance to thrive, not just survive, and the Government should be proud of those achievements as a team.' The spokesman denied the PM thought his Cabinet had needed 'cheering up'. 'No, I think it's a natural point at which to reflect on the first year in office, and as the Prime Minister detailed there are a number of achievements of which the Cabinet can rightly feel proud, but he is equally of the view that there is much still to be done,' the spokesman said. Asked whether the Prime Minister thought the public shared his assessment of the Government's record, the spokesman said: 'I think the public feel the impact of the Government's work already for interest rate cuts, three trade deals… but as with every Cabinet member, he is looking forward, not backwards, and intent on moving further and faster to improve the lives of working people up and down the country and help them thrive, not just survive.'
The Independent
01-07-2025
- Business
- The Independent
Labour in chaos as rebels demand more welfare concessions
Labour MPs are rebelling against proposed benefit reforms, despite amendments, as 150,000 people are still projected to be pushed into poverty. Work and Pensions Secretary Liz Kendall introduced changes to the bill, including protecting current Personal Independence Payments (PIP) and promising a review, to quell the rebellion. Senior figures like Manchester Mayor Andy Burnham and London Mayor Sir Sadiq Khan have criticized the reforms, with Mr. Burnham calling the amendments a "half U-turn." Rebel Labour MPs are demanding further changes or the withdrawal of the "rushed" legislation, with some suggesting a delay until a promised review is completed. Concerns persist over the financial savings of the cuts, now estimated at £2.5 billion, and polling indicates low public trust in Labour 's handling of disability benefits.
The Independent
30-06-2025
- Business
- The Independent
Keir Starmer left to sweat as Labour rebels apply heat over benefit cuts
Keir Starmer is still facing a damaging rebellion after ministers admitted that 150,000 people will still be pushed into poverty by benefits reforms. With the prime minister's authority on the line, his work and pensions secretary Liz Kendall unveiled amended benefits reforms in a bid to persuade Labour backbenchers not to vote down the bill. Ahead of a crunch vote on the welfare reform bill on Tuesday, Labour figures openly criticising the benefit cuts included Manchester mayor Andy Burnham, who urged Labour MPs to vote the whole bill down, and London mayor Sadiq Khan who said the plans needed a 'radical transformation'. Underlining the chaos surrounding the rebellion, Bridget Phillipson insisted Sir Keir would lead Labour into the next general election. In an interview with The Independent days before Labour marks its first year in power, the education secretary also said government had its 'ups and downs' and suggested better times were ahead. More than 130 Labour backbenchers had signed an amendment that would have effectively killed the legislation – but ministers were hoping a last-minute pledge to protect current personal independence payments (Pip) and other changes would end the rebellion. Ms Kendall also promised a review into pip payments, led by work and pensions minister Sir Stephen Timms. But even before she spoke in the Commons, a government impact assessment confirmed that 150,000 disabled people will still be plunged into poverty under the watered-down measures – fewer than the 250,000 threatened by original plans, but enough to leave many Labour backbenchers angry and demanding that the 'rushed' legislation is withdrawn. Work and pensions committee chair Debbie Abrahams, one of the major architects of the rebellion, did not rule out voting against the bill. Ms Abrahams, who negotiated last week's concessions alongside Treasury committee chair Dame Meg Hillier, suggested a rift over what had been negotiated. Although she described the concessions as "good", Ms Abrahams said the rebels were "not quite there yet" on a deal with the government. 'The actual offer that was put to one of the negotiating team wasn't actually what we thought we had negotiated,' she said. 'There are some issues around that." As Ms Kendall's statement was heard in almost complete silence in the Commons, a succession of Labour MPs took to their feet to vent their fury about the reforms and demand that the bill be delayed until after the Timms review was completed. To add to Labour's woes, Ms Kendall admitted the benefit cuts would only save taxpayers £2.5bn – not £4.8bn as previously stated – posing new questions over where chancellor Rachel Reeves will balance the books. As she spoke, More in Common published polling that revealed two-thirds of voters (63 per cent) did not trust Labour with disability benefits. A Downing Street spokesperson earlier refused to rule out even more concessions as Labour backbenchers continued to pile on pressure. Speaking to the Commons, a beleaguered Ms Kendall admitted there had been "real concerns" about the Government's welfare reforms, adding: "We have listened carefully, and we are making positive changes as a result." She went on to say: "We will now ensure the new four-point requirement will only apply to new claims from November 2026. This means no existing claimants will lose Pip because of the changes brought forward in this Bill, and existing claimants of passported benefits like carers allowance will continue to get them too.' Responding to claims this would create a "two-tier" benefits system, Ms Kendall said: "I would say to the House, including members opposite, that our benefits system often protects existing claimants from new rates or new rules, because lives have been built around that support, and it's often very hard for people to adjust." However, Sarah Owen, the Labour chair of the women and equalities select committee, warned that by pressing ahead with the bill before the Timms review was completed 'could lead to not just two tiers but three tiers.' Among a succession of MPs demanding a delay to the legislation was Marie Tidball, a disabled Labour MP, who furiously attacked the government for a lack of engagement with disability groups. She said: "This is not just about the process, this makes disabled people worse off. The principle of fairness means disabled people have a legitimate expectation to be consulted, and in order to fulfil the Equality Act section 149 public sector equality duty. "Why did the Department for Work and Pensions choose not to consult with disabled people on Pip proposals, and what work will her department do to win back the trust of disabled people?' Stella Creasy warned that the proposals could 'breach obligations from the United Nations Convention' on disability rights. However, Calder Valley MP Josh Fenton-Glyn, a signatory of the rebel amendment, praised the minister for 'listening' to criticisms.
