Latest news with #disabilityBenefits
The Guardian
3 days ago
- Business
- The Guardian
Rachel Reeves looks to spending review to shift focus from welfare cuts
Rachel Reeves's spring statement in March ended up being defined by deep cuts to disability benefits. The Treasury hopes next week's spending review will be remembered for the chancellor's largesse. Her team have consistently been frustrated that despite announcing tax increases worth £40bn a year by the end of the parliament, and radically rewriting the fiscal rules, Reeves has failed to win much political credit for unlocking additional investment. The Treasury argues that its plans amount to more than £100bn in additional capital investment over the next five years, compared with what her predecessor Jeremy Hunt expected to spend. Reeves believes under-investment is a long-term bugbear of the UK economy. She made space for this additional infrastructure spending by changing the fiscal rules to allow her to borrow to invest – and shifting the definition of government debt, to take into account financial assets owned by the taxpayer. The chancellor will be in Manchester on Wednesday to announce a slate of transport investments outside London, as part of this uplift in investment, with more to come next week. She has been inviting groups of Labour MPs into No 11 this week to tell them the good news about high-profile projects in their constituencies – though some fret that they are unlikely to materialise rapidly enough to bring much electoral benefit. After fraught cabinet negotiations, the spending review will parcel out among Whitehall departments the spending for the next three years which was announced at the spring statement – the 'envelope', as the Treasury calls it. Alongside infrastructure projects, the chancellor is expected to prioritise health, defence and economic growth, with the latter including the government's long-awaited industrial strategy. Reeves and her cabinet colleagues will be keen to point to the potential benefits of this additional spending, not least a less dysfunctional NHS. Outside these key areas, some departmental settlements are expected to be painfully tight, particularly towards the later end of the three-year period the spending review covers: a point that will inevitably be made by thinktanks such as the Institute for Fiscal Studies. Reeves's enforcer, Darren Jones – the chief secretary to the Treasury – insists departments should be looking for ways to make resources go further over time, through innovation and cracking down on waste. And the chancellor is expected to offer a robust defence of her fiscal rules, which despite mounting disquiet inside her own party, her team contend are necessary to maintain the stability of the public finances. Under the rules, day-to-day spending must be covered by taxation. Reeves's allies believe this tough constraint is necessary, to maintain the market confidence the Treasury needs, to ratchet up borrowing to fund investment. But critics argue that it distorts decision-making, forcing the government into choices like the £5bn in welfare cuts made in the spring statement, in order to ensure the rules were on course to be met. Another controversial choice Reeves made to balance the books, the means-testing of the winter fuel allowance, is also likely to come under intense scrutiny , with the chancellor unable to say as yet how the partial U-turn on the policy will be funded (or indeed exactly who will receive the payment this winter). She is also likely to be challenged about whether she will find the resources for other Labour priorities, including tackling child poverty – a full strategy on which is now not expected until the autumn. After the bruising reversal of the winter fuel allowance decision, with which she was so closely associated, Reeves will be hoping next week will be more about spending than cuts. But it is also likely to underline, yet again, the difficulties of achieving some of Labour's central aims within the fiscal constraints the Treasury has set.
Globe and Mail
27-05-2025
- Business
- Globe and Mail
More than 8,300 Hudson's Bay employees will be out of a job by next week, others to lose disability benefits
By the time Hudson's Bay Co. winds up the last of its liquidation sales this coming Sunday, the vast majority of its employees – more than 8,300 people – will have been terminated by the company without severance payments. Canada's oldest retailer will return to court next Tuesday, June 3, to seek an order that will instead trigger employees' entitlement to benefits under the federal government's Wage Earner Protection Program, which is designed to pay severance to workers whose companies are bankrupt or in receivership. Court documents filed on Monday also confirmed that many current and former Hudson's Bay employees who receive long-term disability benefits will lose that support as of June 15. Hudson's Bay filed for protection from its creditors under the Companies' Creditors Arrangement Act (CCAA) on March 7. The maximum eligible amount under the Wage Earner Protection Program is $8,844.22 per employee, according to law firm Ursel Phillips Fellows Hopkinson LLP, which was recently appointed by the court as representative counsel for the HBC employees. In a statement, lawyer Susan Ursel wrote that the move would be 'good news' for current and former employees. Roughly 189 people will soon lose their disability benefits, a group whose payments were covered under an 'administrative services only' (ASO) arrangement, which were paid out of the company's own cash. Last month, The Globe reported on the existence of the ASO plan, and the employees' concerns that their benefits could disappear. Another 100 to 200 current and former employees receive benefits under an insured plan; their benefits will continue to be paid. Hudson's Bay has already cut off other benefits: on April 30, roughly 2,200 retirees lost their health and dental benefits and life insurance policies that were provided by Hudson's Bay. The company and its senior lenders, along with the lawyers for the employees, 'continue to explore the possibility of implementing a hardship fund or structure to provide monetary assistance to current and former employees who are experiencing financial difficulty after the loss of their benefits,' Hudson's Bay chief operating officer and chief financial officer Michael Culhane wrote in an affidavit filed with the court on Monday. Ms. Ursel wrote in her statement that the parties are also exploring 'other avenues of alleviation for affected employees and will advise as developments allow.' Hudson's Bay has been letting store employees go as their locations' closing dates – which vary – have approached. All of the company's 96 stores across Canada will be closed by June 1. At that time, the remaining 1,107 staff will assist with the wind-up of the business, including clearing out furniture and fixtures from the stores, according to court documents. Another approximately 900 employees will lose their jobs on June 15, with the rest remaining to assist with winding up the company's operations. Unifor, the union that represents nearly 600 employees who worked at the company's e-commerce distribution centre as well as stores in Mississauga and Kitchener, Ont., has called on the Bay to honour its severance agreements. On Tuesday, Unifor planned solidarity rallies in Toronto and Windsor, Ont., to push the company to 'prioritize workers' wages, pensions, and benefits during its liquidation process,' according to a news release.
Daily Mail
26-05-2025
- Business
- Daily Mail
Keir Starmer mulls sealing hat-trick of U-turns by watering down disability benefit changes as well as winter fuel and child cash cuts to appease Labour MPs
Keir Starmer is on course to complete a hat-trick of U-turns as he mulls watering down £5bn worth of disability benefit cuts in order to see off attacks from Labour backbenchers and Nigel Farage. Reports suggest that claimants could get more time to seek support before Labour's welfare cuts are implemented under 'tweaks' being considered by the Prime Minister. Sir Keir is facing a mounting backbench rebellion to plans to make it harder for people to claim incapacity payments, in order to save money and get people into work. Peter Lamb, the Labour MP for Crawley, is the latest to publicly state he would vote against the plan, saying the party ranks are 'deeply uncomfortable' with it. The PM has already signalled he plans to ease cuts to £300 winter fuel payment handouts for pensioners, and could soften the two-child cap on handouts for parents. As well as uncomfortable Labour MPs, Reform UK leader Mr Farage is expected this week to commit to restoring the winter fuel payment in full, as well as scrapping the two-child benefit cap. The move is an attempt to outflank Labour with its traditional working class supporters, according to Reform sources. However, a course hit back accusing him of 'cosplaying' support for working people. The Times said the Prime Minister is seeking to soften the blow of the cuts comes as he faces the growing threat of a backbench rebellion over the package of measures, which ministers hope will save the public purse £5 billion a year. Benefit claimants could be given longer 'transitional periods' to seek out other benefits if they lose out as a result of the reforms, according to the Times. A backbench rebellion over the proposals, which would tighten eligibility for the personal independence payment (Pip) as part of a package aimed at getting more working age people currently on benefits into jobs, could spread to more than 100 MPs, some reports have suggested. Mr Lamb last night told BBC Radio 4's Westminster Hour he would be 'voting against anything which is going to restrict access to Personal Independence Payments (Pip) further than it's currently restricted'. 'I know a lot of people, and these are not people on the far left of the party, who are deeply uncomfortable with some of the decisions that've already been taken, who are deeply uncomfortable with this proposal,' he said. It would be very very hard at this point for them to turn around and change direction on this. It is something that matters an awful lot to people, we didn't come into politics to impoverish the most vulnerable members of society.' Meanwhile Stella Creasy said the two-child benefit cap should be lifted. The Walthamstow MP told BBC Radio 4's Today programme that lifting the cap would take '350,000 children out of poverty overnight'. 'It's worth reflecting on the fact that 60 per cent of those kids are in households where somebody is in work,' she added. 'What really matters is that child poverty strategy, because none of us want to be dependent on the welfare system as a way of helping every family make ends meet. 'And I am painfully aware of how many people in my local community still have too much month at the end of their money.' Health minister Karin Smyth said 'politics is always about choices', telling BBC Radio 5 Live the Government had been able to ensure there was money for the NHS. On the winter fuel payment U-turn, she said: 'It's an important balance, isn't it, in democracy to look at policies as they land, to listen to people affected, and what the Prime Minister is saying is that… we're looking at how people at the margins are impacted by that particular policy, I think that's the sign of a government that is listening. 'The Chancellor and the Treasury will have to review all of these in light of the key mission, which is to grow the economy and maintain economic stability. 'We know government is hard, and I think listening, looking at policies, how they impact, weighing up those costs and benefits is exactly the right thing to do.' Labour backbenchers have already secured a partial U-turn from Sir Keir over the winter fuel payment cut, and are ramping up pressure on the Prime Minister to also scrap the two-child benefit cap. The Prime Minister announced the change of direction on winter fuel at PMQs in the Commons last week, though details of when and how more pensioners might get the payment were not revealed. Deputy Prime Minister Angela Rayner on Sunday indicated an announcement could come in weeks. Ms Rayner suggested the Spending Review on June 11 was the 'first opportunity' to make the change. 'I mean, the Prime Minister has announced it, so logically to me that indicates that the Prime Minister wants to do something in this area. 'And if the Prime Minister wants to do that, I'm sure the Chancellor is going to look at how we can achieve that,' she told Sky News. Ministers have reportedly been considering scrapping the cap, which restricts the amount of benefits parents can claim for more than two of their children, as part of their child poverty strategy. Critics of the cap say removing it would be one of the most significant ways to prevent child poverty. The plan, which was due to be published in the spring, is now set to come in the autumn so it can be aligned with the budget. The Deputy PM branded Mr Farage a 'snake oil salesman' when she appeared on LBC on Sunday, and suggested Reform does not have a fully-costed plan behind its commitment.
Yahoo
23-05-2025
- Business
- Yahoo
National Association for Veterans Rights Commends Alabama for Enacting SB 206 to Protect Veterans from Predatory Practices
WASHINGTON, May 22, 2025--(BUSINESS WIRE)--The National Association for Veterans Rights (NAVR) commends the State of Alabama today for its decisive action in enacting Senate Bill 206 (SB 206), a crucial new law establishing clear safeguards for Veterans seeking assistance with their federal disability benefits. Governor Kay Ivey officially signed the bill into law, reinforcing Alabama's commitment to protecting those who served. With the enactment of SB 206, Alabama joins a growing movement of states, including Louisiana, Tennessee, Oklahoma, and South Dakota, that have already passed similar legislation aimed at establishing transparency, accountability, and safeguards in the Veterans benefits process. "This is another major step in the crusade to protect those who served," said Peter O'Rourke, President of NAVR. "By joining the ranks of other states that have taken bold action, Alabama is reinforcing a nationwide commitment to protecting Veterans from bad actors in the claims assistance space." SB 206 establishes important guardrails that empower Veterans to make informed choices when seeking assistance with their benefits. NAVR has long championed state-level legislation that closes loopholes leaving Veterans vulnerable to exploitation. The passage of SB 206 in Alabama reflects a growing consensus that stronger consumer protections for Veterans are both necessary and overdue. "This is about restoring trust and integrity in the system that serves our nation's heroes," O'Rourke said. "Governor Ivey's signature on SB 206 positions Alabama as a national leader in Veterans' protections, and reinforces a growing consensus that Veterans deserve choice, clarity, and confidence when seeking help with their earned benefits." NAVR has led the charge nationwide to expose bad actors and support commonsense legislation that gives Veterans access to safe, qualified, and transparent services. About NAVR: The National Association for Veterans Rights (NAVR) is a national trade association committed to promoting ethical and transparent business practices among companies engaging with the service-disabled Veteran community. NAVR advocates for businesses that empower Veterans with professional and transparent solutions while advancing support for Veteran-owned businesses. View source version on Contacts For more information, contact press@ Sign in to access your portfolio
Associated Press
23-05-2025
- Business
- Associated Press
National Association for Veterans Rights Commends Alabama for Enacting SB 206 to Protect Veterans from Predatory Practices
WASHINGTON--(BUSINESS WIRE)--May 22, 2025-- The National Association for Veterans Rights (NAVR) commends the State of Alabama today for its decisive action in enacting Senate Bill 206 (SB 206), a crucial new law establishing clear safeguards for Veterans seeking assistance with their federal disability benefits. Governor Kay Ivey officially signed the bill into law, reinforcing Alabama's commitment to protecting those who served. With the enactment of SB 206, Alabama joins a growing movement of states, including Louisiana, Tennessee, Oklahoma, and South Dakota, that have already passed similar legislation aimed at establishing transparency, accountability, and safeguards in the Veterans benefits process. 'This is another major step in the crusade to protect those who served,' said Peter O'Rourke, President of NAVR. 'By joining the ranks of other states that have taken bold action, Alabama is reinforcing a nationwide commitment to protecting Veterans from bad actors in the claims assistance space.' SB 206 establishes important guardrails that empower Veterans to make informed choices when seeking assistance with their benefits. NAVR has long championed state-level legislation that closes loopholes leaving Veterans vulnerable to exploitation. The passage of SB 206 in Alabama reflects a growing consensus that stronger consumer protections for Veterans are both necessary and overdue. 'This is about restoring trust and integrity in the system that serves our nation's heroes,' O'Rourke said. 'Governor Ivey's signature on SB 206 positions Alabama as a national leader in Veterans' protections, and reinforces a growing consensus that Veterans deserve choice, clarity, and confidence when seeking help with their earned benefits.' NAVR has led the charge nationwide to expose bad actors and support commonsense legislation that gives Veterans access to safe, qualified, and transparent services. About NAVR: The National Association for Veterans Rights (NAVR) is a national trade association committed to promoting ethical and transparent business practices among companies engaging with the service-disabled Veteran community. NAVR advocates for businesses that empower Veterans with professional and transparent solutions while advancing support for Veteran-owned businesses. View source version on For more information, [email protected] KEYWORD: UNITED STATES NORTH AMERICA DISTRICT OF COLUMBIA ALABAMA INDUSTRY KEYWORD: PUBLIC POLICY/GOVERNMENT VETERANS STATE/LOCAL DEFENSE SOURCE: The National Association for Veterans Rights (NAVR) Copyright Business Wire 2025. PUB: 05/22/2025 07:45 PM/DISC: 05/22/2025 07:44 PM
