Latest news with #disabilitybenefits
The Guardian
2 days ago
- Business
- The Guardian
Ministers consider tweaks to soften welfare cuts before key vote
Ministers are considering tweaks to soften their controversial welfare cuts before a crunch vote in parliament next month. The government is examining a potential change that could allow up to 200,000 people to keep their disability benefits by tweaking assessment rules. In March, Labour announced plans to save £5bn a year by overhauling the welfare system, including by cutting personal independence payments for disabled people. The proposals have alarmed many Labour MPs, with more than 100 signing a letter saying they cannot support them ahead of the vote. Ministers are looking at potential tweaks to mollify Labour backbenchers. The Financial Times reported that one of the changes being looked at is a tweak to the proposed Pip assessment rules so that individuals who receive a high overall score continue to be eligible, even if they do not receive at least four points in any category. A government source told the Guardian that this was 'an option they're considering', although sources in Downing Street and Whitehall denied it was on the table. Under the government's planned changes, claimants would not qualify for Pip unless they scored a minimum of four points on a single daily living activity. Assessments score the difficulty from zero to 12 that claimants face in a range of living activities such as preparing and eating food, communicating, washing and getting dressed. Another potential tweak could mean more time is given to claimants who lose access to one disability benefit to apply for other support they may be eligible for. The Times reported this week that benefit claimants could be given longer 'transitional periods' to ease the impact of losing support. Keir Starmer has been under pressure over his welfare cuts since they were blamed for Labour's poor local election results earlier this month. Ministers are looking at potential changes to the disability benefit cuts as a way of staving off a major backbench rebellion against them. Last week the prime minister announced a U-turn over the winter fuel allowance for pensioners, which is worth up to £300 a year and was scrapped from 10 million pensioners in one of the Labour government's first moves last July. At prime minister's questions last Wednesday, Starmer told the Commons he would ease the cut by changing the threshold to allow 'more pensioners' to qualify again. The government has yet to set out more details on what the change will mean, but Angela Rayner said last weekend that the payments would not be restored in their entirety. Nigel Farage has sought to outflank Labour on welfare by committing to fully reinstating winter fuel payments and scrapping the two-child benefit cap. Eluned Morgan, the Welsh first minister, urged the government to scrap the two-child benefit cap on Wednesday and said it was 'damaging for lots of families in Wales'. She has previously criticised the winter fuel cut. Starmer told a press conference on Thursday that he was looking at 'all options' to drive down child poverty when asked if he would like to get rid of the two-child benefit cap. 'One of the proudest things that the last Labour government did was to drive down child poverty, and that's why we've got a taskforce working on this,' he said. 'I think there are a number of components. There isn't a single bullet.'
The Guardian
3 days ago
- Business
- The Guardian
US firm that tests eligibility for UK disability benefits pays out £10m in dividends
A US contractor that profits from testing whether some people in the UK should receive disability benefits has paid out £10m in dividends to its investors. Maximus, a Virginia-based business, reported a 23% rise in pre-tax profit for its UK arm, from £23.6m to £29.1m, in its financial year to the end of September. Its revenue rose 2%, from £294m to £300m. The company is the biggest provider of functional assessment services, or FAS, for the Department for Work and Pensions. These tests determine a person's level of function and ability to perform everyday tasks. The UK arm of the business paid out £10m in dividends to investors, equivalent to £10,000 per ordinary share, according to accounts filed at Companies House. The company also paid out £10m in dividends to its investors in the 2023 financial year. Maximus secured a five-year contract from the government in 2023 to provide functional assessment services, at an estimated value of £800m over the period, with the option to extend for a further two years. In a green paper published in March, the Department for Work and Pensions said experiences of assessments for the personal independence payment (Pip) were 'not always positive'. The national disability charity Sense said 'nobody should be rewarded for treating disabled people with disrespect'. Tom Marsland, of the charity, said: 'Sense's research found that half of disabled people with complex needs who've been through a benefits assessment found it humiliating, and almost half didn't get the right communication support to properly demonstrate why they need support. 'These statistics are shocking and show a deep-rooted problem with the current assessment process. 'We would like to see the government introduce clear standards to ensure benefits assessments are fair and accessible for disabled people, with no one left feeling like a criminal simply for trying to access the support they need,' he said. 'There should also be financial penalties for assessment providers who fail to provide the right communication support and accessibility measures.' The government is planning to reduce eligibility for Pip and the health component of universal credit. As a result, official figures suggest that 3.2 million people could lose an average of £1,720 a year and 250,000 people could be pushed into relative poverty. Maximus UK is part of a bigger US organisation that is listed in New York with a market value of $4.2bn (£3.1bn). Shares in the business, which also provides administration and services for US programmes such as Medicaid and Medicare, have dropped 12% in the past year. Bruce Caswell, the chief executive of Maximus, was paid a base salary of $886,904 in 2024, with stock awards, incentive plans and other compensation taking his total package to $10.2m. Maximus declined to comment. The government was approached for comment.
The Guardian
3 days ago
- Business
- The Guardian
Jobcentres will no longer force people into ‘any job' available, minister says
Jobcentres will no longer force people into 'any job' available, the employment minister has said, promising there will be long-term, personalised career support for those losing out due to welfare cuts. Alison McGovern said she was ending the Conservative policy under which jobseekers were obliged to take any low-paid, insecure work and that the service would now be focused on helping people to build rewarding careers. McGovern, who is tasked with a major overhaul to employment support as a result of significant cuts to disability benefits, said the department would use AI to free up the workloads of job coaches, giving them more time to provide 'human' support to those with complex needs and long-term unemployment. The government is facing open revolt among Labour MPs over the proposed cuts – which some in No 10 fear could mean losing the vote in parliament. McGovern said she wanted to acknowledge there were many disabled people who would feel 'frightened' by the cuts to personal independence payments and incapacity benefits, with many losing support entirely. 'I don't blame anybody for being scared or worried about it because given what's happened with changes to disability benefits before, I understand that,' she said. But she added she was deeply concerned about the numbers of young people out of work – with many needing specialist help to even engage with job support because of extreme social anxiety. McGovern said that people whose benefits were cut under Labour would receive radically different support. Work support will be offered by GPs and physiotherapists, in addition to the extended support in jobcentres. 'One of the things that broke me was reading people say that they thought 'no one would want them,'' she said. 'I cannot live with the idea that there's people in this country who think that no one wants them.' The government will eventually spend £1bn a year in additional support for those with long-term health problems to access work, though the funding will be less for the first few years, starting at about £300m next year as the changes begin to come into effect. But the Resolution Foundation thinktank has previously suggested that the support available would bring at most 105,000 people into work by 2030, and would push many more into poverty. McGovern said she hoped changes to the current system and the way the department relates to employers would make a significant difference to the numbers. She said the Conservatives had left a 'black hole' in the service, where a top-down bureaucratic system was having no measurable impact on getting people into work. Department for Work and Pensions (DWP) staff in jobcentres will be asked to rely more on AI software called DWP Ask and to fill in forms in advance of work coach meetings so that time can be spent on longer support for clients. Trials have already been run in which work coaches are given more time with clients than the usual five minutes. 'Nobody is ever going to make a film of I, Daniel Blake, but the reverse,' McGovern said. 'But what I would like is a person comes into the jobcentre who has perhaps not worked for some years and … they are given the time so that they can tell their whole story. Jobcentres will then be able to pick up the phone to tailored specific support for that person's barriers, then support once they are in work as well. We've got to see the whole person.' McGovern said she would like to radically improve the number of employers engaging directly with the DWP – currently just one in six. She said that would help jobcentres match people with the right skills and prepare them better for interviews or placements. 'The Tories used to talk about ABC: 'Any job, Better job, Career'. I think that if you think about the career [first] … If we can get people into an NHS job where they're more likely to move on and move up, then that is far better for them.' McGovern said she was particularly troubled by the plight of younger people, many of whom had been scarred by Covid. She said in some areas work coaches were having to accompany young people even to public places such as job fairs to help them overcome their anxieties. 'Now, that tells me that there's an issue,' she said. 'We have to pay our debt to the Covid generation … I worry particularly about young people, and I think there has not been enough discussion or understanding of what Covid took from young people.' Ministers are anticipating a significant rebellion and potential defeat when the welfare changes come before parliament, with up to 170 MPs suggesting publicly or privately that they could vote against or abstain on the changes. 'I don't blame colleagues for listening to their constituents who are fearful,' McGovern said. She said that people would have those fears alleviated only if they could see the system had truly changed. 'I also look at the reality of our economy,' she said. 'And I know that the social security system is designed as a kind of bulwark against poverty and to help us smooth life events over time. That only works well when you've got an economy that supports people's living standards. '[The] social security system can never overcome the sort of deep inadequacies that there are in our economy. What we need is to change our economy, make sure that people have got chances and choices and opportunity ... So I think these changes are necessary. I know that the job is much bigger than that.'
The Guardian
5 days ago
- Entertainment
- The Guardian
Disabled celebrities urge Keir Starmer to scrap ‘inhumane' benefit cuts
More than 100 of the UK's most high-profile disabled people, including Liz Carr, Rosie Jones, Ruth Madeley and Cherylee Houston, have called on the prime minister to abandon 'inhumane and catastrophic plans to cut disability benefits'. In an open letter to Keir Starmer before a planned Commons vote next month, they argue that the government's plan to reduce eligibility to personal independence payment (Pip) and the health component of universal credit is a matter of 'survival' and 'basic human rights'. 'If these plans go ahead, 700,000 families already living in poverty will face further devastation,' they write. 'This is not reform; it is cruelty by policy.' The signatories warn Starmer the changes will 'strip financial support from those who need it most', deepen social exclusion and 'increase disability-related deaths'. Citing the way Pip is linked to a loved one's eligibility for carer's allowance, the letter says thousands of unpaid carers will lose income as well as 'overwhelm local councils', which often rely on disabled people's Pips for social care. 'We have already endured a decade of austerity, disproportionate pandemic losses, and life-costing cuts,' the letter says of disabled people in the UK. 'We, the undersigned, will not stand by while our community is sacrificed for the illusion of savings.' They add: 'For us, Pip is not a benefit – it is access to life.' The government's plans, set out in a green paper earlier this year, would reduce the eligibility criteria for Pip – a non-means tested benefit designed to pay for the extra costs of disability – for an estimated 1 million people. The sickness-related element of universal credit is also set to be cut, with MPs due to vote on that aspect in the autumn. Official figures show 3.2 million people could lose an average of £1,720 a year as a result. Spanning the worlds of television, theatre, literature and the media, the signatories include the Adolescence writer Jack Thorne, the comedian Lee Ridley known as Lost Voice Guy, the actor Lisa Hammond and the broadcaster Sophie Morgan. The letter will be part of a wider campaign launched by disabled celebrities that aims to bring attention to the government's proposed cuts. Using the hashtag #TakingThePIP, the organisers will ask deaf, disabled and neurodivergent people to share their experiences, contact their MPs, and 'take a stand' on social media. Houston, an actor and co-organiser of the letter, said she and others with a platform felt they 'had to do something' to oppose the 'barbaric' policy. 'I've heard so very many heartbreaking stories of the struggles people are facing, even before this latest round of proposed cuts. These cuts will devastate disabled people's lives if they go through. These are lifeline benefits we are talking about, stripping away the ability for disabled people to live their lives. We want the government to listen, withdraw the cuts, and work with us to create a system that supports, not punishes, disabled people.' The letter raises concerns about the government's rhetoric around its proposals titled Get Britain Working. 'Framing welfare cuts as 'incentives' to work implies that disabled people must earn their place in society through productivity – a dangerous narrative. Disabled lives are inherently valuable – whether someone can work or not,' it says. The signatories add that the Access to Work scheme now has a backlog of over six months, preventing many from working, while cutting Pip will make it harder for people to stay in work. The opposition from leading disabled people comes as ministers face a rebellion from backbenchers over the plans, as well as condemnation from charities and unions. The partial U-turn over the winter fuel allowance last week has raised questions over whether other benefit reductions should also be overturned, with Unison urging ministers to 'look again' at cuts facing disabled people as well as pensioners. A government spokesperson said: 'We are determined to support people in all parts of the country by tackling poverty and creating secure, well-paid jobs. 'Pip is a part of the way that we support disabled people and people with long-term health conditions. But with the number of people claiming Pip doubling since the pandemic, it's right that we rebalance the system to ensure support is targeted to those who need it most. 'Alongside this, as part of our plan for change, we've increased the national living wage, uprated benefits, and are helping over 1 million households by introducing a fair repayment rate on universal credit deductions.'
The Sun
24-05-2025
- Business
- The Sun
Angela Rayner BACKED welfare cuts in private Cabinet meetings despite leftie leaked memo
ANGELA Rayner backed controversial cuts to disability benefits in private Cabinet meetings - despite painting herself as the darling of the Labour left. The deputy PM is locked in an extraordinary war with Keir Starmer and Rachel Reeves after an explosive memo she penned demanding tax rises over spending cuts leaked. 4 4 Furious government insiders accused Angela's team of leaking the note to 'curry favour' with Labour MPs angry at No10 over planned welfare cuts. But in a fresh twist, The Sun on Sunday can reveal Ms Rayner spoke out in favour of the controversial £5 billion welfare cuts in a private Cabinet meeting earlier this year. A senior government source said: 'That memo was transparently written to be leaked, and it is because she wants to curry favour with members who will prefer wealth taxes to spending cuts. 'But she spoke out in favour of the welfare cuts in Cabinet. 'She said opponents of the cuts to welfare were writing off disabled people by consigning them not to work.' 4 Cabinet meetings are private and ministers are allowed to openly discuss and argue over policies if they do not agree with them. Welfare chief Liz Kendall had set out her plans to slash £5B billion a year from sickness and disability benefits in a big drive to get more Brits back to work. Not all Cabinet ministers spoke out in favour of the cuts - but Ms Rayner did. Sir Keir is facing fury and the biggest rebellion of his premiership over the welfare cuts when they are voted on in Parliament next month. Around 100 Labour MPs are preparing to defy No10 and rebel. Ministers and government whips are on resignation watch. One government source said: 'They do expect some people to resign.' The revelation comes at the end of an astonishing week in Westminster which saw the very top of the Labour government descend into civil war. The Rayner memo - leaked to The Daily Telegraph - was seen as a brazen attempt to show off her leftie credentials to build up her support base to be leader after Sir Kier. The flame-haired Labour deputy is also embroiled in a dust-up with Rachel Reeves over how much cash her housing and local government department will get. Angela is fighting off attempts to cut her money in real terms as heated spending review talks are set to go down to the wire. Lord Ian Austin - a former Labour minister and peer - told The Sun on Sunday: 'Deputy Leader Angela Rayner ruffled feathers by sending round suggestions on tax increases instead of benefit cuts. She obviously wants the top job after Keir.' 4 But he warned Labour MPs a lurch to the Left would torpedo their chances of reelection, saying: 'They must be mad if they believe working class people vote for right wing parties because they think Labour isn't left wing enough.' Another Whitehall source said it is 'insane' the Housing Secretary is writing to the Chancellor with an alternative Budget plan. 'The clear aim was for it to get out', they added. Another said it is a sign Ms Rayner is 'upping the ante'. Jet-setting Ms Rayner had been working hard to promote herself on the international stage. Last week, she was pictured shaking hands with the new Pope and she has even hired a foreign affairs adviser to boost her profile on the world stage.
