Latest news with #welfareReform
The Guardian
10-07-2025
- Business
- The Guardian
Is it time for a wealth tax on the super-rich?
After cuts in Labour's proposed welfare reform bill caused uproar, many of the party's supporters insist it's time for a different approach. Rather than cutting the benefits bill or public spending, why not tax the wealthiest more? It's a question Keir Starmer was asked in PMQs, and he replied by saying it wasn't possible to 'tax our way to growth'. The millionaire Dale Vince disagrees. A former new-age traveller who made his money in green energy and has donated to Just Stop Oil, he is part of the Patriotic Millionaires organisation who think it is high time people like them are asked to increase their contributions. 'There's a whole bunch of us. We're all saying the same thing, that we can afford to pay more tax. Rich people should pay more tax, and we can use that money to reduce inequality in our country.' The tax expert and economics professor Arun Advani explains how a wealth tax could work and what the dangers could be. Would it send millionaires fleeing from the UK – and would that matter? And what other levers are at the government's disposal?
The Independent
09-07-2025
- Business
- The Independent
Government sees off backbench rebellion as welfare reforms clear Commons
A proposed benefit cut for future out-of-work claimants has cleared the Commons after Labour ministers saw off a backbench rebellion. The Universal Credit Bill cleared the Commons at third reading, after it received MPs' backing by 336 votes to 242, majority 94. 'If you can work, you should,' social security minister Sir Stephen Timms told MPs before they voted on the welfare reforms. 'If you need help into work, the Government should provide it, and those who can't work must be able to live with dignity. 'Those are the principles underpinning what we're doing.' Work and pensions ministers faced calls to walk away from their universal credit (UC) proposals at the 11th hour, after they shelved plans to reform the separate personal independence payment (Pip) benefit and vowed to only bring in changes following a review. 'When this Bill started its life, the Government was advocating for cuts to Pip claimants and UC health claimants now and in the future. They conceded that now wasn't right, and it was only the future,' Labour MP for Hartlepool Jonathan Brash said. 'Then they conceded it shouldn't be Pip claimants in the future, leaving only UC health claimants in the future. Does (Sir Stephen) understand the anxiety and confusion this has caused people in the disabled community, and would it not be better to pause and wait for the review and do it properly?' Sir Stephen replied: 'No, because reform is urgently needed. We were elected to deliver change and that is what we must do. 'And it's particularly scandalous that the system gives up on young people in such enormous numbers – nearly a million not in employment, education or training.' The minister said the Government wanted to 'get on and tackle the disability employment gap' and added the Bill 'addresses the severe work disincentives in universal credit, it protects those we don't ever expect to work from universal credit reassessment'. As part of the Bill, the basic universal credit standard allowance will rise at least in line with inflation until 2029/30. But the Government has proposed freezing the 'limited capability for work' (LCW) part of the benefit until 2030, which a group of 37 Labour rebels including Mr Brash opposed in a vote. The move was ultimately approved by 335 votes to 135, majority 200. New claimants who sign up for the 'limited capability for work and work-related activity' payment would receive a lower rate than existing claimants after April 2026, unless they meet a set of severe conditions criteria or are terminally ill, which the same rebels also opposed. Rachael Maskell, the Labour MP for York Central who was among them, had earlier said: 'No matter what spin, to pass the Bill tonight, this will leave such a stain on our great party, founded on values of equality and justice.' She warned that making changes to universal credit before a wider look at reform was putting 'the cart before the horse, the vote before the review', and branded the Government's decision-making an 'omnishambles'. Ms Maskell pressed her own amendment to a division, which she lost by 334 votes to 149, majority 185. It would have demanded that out-of-work benefit claimants with a 'fluctuating medical condition' who slip out of and then back into their eligibility criteria either side of the changes would receive their existing – not the lower – rate. Marie Tidball said that during the review of Pip, which Sir Stephen was tasked with leading, 'the voices of disabled people must be front and centre'. She proposed putting a series of legal conditions on the so-called Timms review, including that disabled people should be actively involved in the process. The Labour MP for Penistone and Stocksbridge did not move her amendment to a vote, on the basis Sir Stephen could offer 'further assurances that there will be sufficient link between the Timms review recommendations and subsequent legislation on Pip to ensure accountability and that the voices of disabled people are heard'. The minister said he could give her that assurance, and added that 'the outcome of the review will be central to the legislation that follows'. A total 47 Labour MPs voted against the Bill at third reading including Mr Brash, Ms Maskell, Mother of the House and Hackney North and Stoke Newington MP Diane Abbott, and former minister Dawn Butler. The Bill will undergo further scrutiny in the Lords at a later date.
Yahoo
09-07-2025
- Business
- Yahoo
Government sees off backbench rebellion as welfare reforms clear Commons
A proposed benefit cut for future out-of-work claimants has cleared the Commons after Labour ministers saw off a backbench rebellion. The Universal Credit Bill cleared the Commons at third reading, after it received MPs' backing by 336 votes to 242, majority 94. 'If you can work, you should,' social security minister Sir Stephen Timms told MPs before they voted on the welfare reforms. 'If you need help into work, the Government should provide it, and those who can't work must be able to live with dignity. 'Those are the principles underpinning what we're doing.' Work and pensions ministers faced calls to walk away from their universal credit (UC) proposals at the 11th hour, after they shelved plans to reform the separate personal independence payment (Pip) benefit and vowed to only bring in changes following a review. 'When this Bill started its life, the Government was advocating for cuts to Pip claimants and UC health claimants now and in the future. They conceded that now wasn't right, and it was only the future,' Labour MP for Hartlepool Jonathan Brash said. 'Then they conceded it shouldn't be Pip claimants in the future, leaving only UC health claimants in the future. Does (Sir Stephen) understand the anxiety and confusion this has caused people in the disabled community, and would it not be better to pause and wait for the review and do it properly?' Sir Stephen replied: 'No, because reform is urgently needed. We were elected to deliver change and that is what we must do. 'And it's particularly scandalous that the system gives up on young people in such enormous numbers – nearly a million not in employment, education or training.' The minister said the Government wanted to 'get on and tackle the disability employment gap' and added the Bill 'addresses the severe work disincentives in universal credit, it protects those we don't ever expect to work from universal credit reassessment'. As part of the Bill, the basic universal credit standard allowance will rise at least in line with inflation until 2029/30. But the Government has proposed freezing the 'limited capability for work' (LCW) part of the benefit until 2030, which a group of 37 Labour rebels including Mr Brash opposed in a vote. The move was ultimately approved by 335 votes to 135, majority 200. New claimants who sign up for the 'limited capability for work and work-related activity' payment would receive a lower rate than existing claimants after April 2026, unless they meet a set of severe conditions criteria or are terminally ill, which the same rebels also opposed. Rachael Maskell, the Labour MP for York Central who was among them, had earlier said: 'No matter what spin, to pass the Bill tonight, this will leave such a stain on our great party, founded on values of equality and justice.' She warned that making changes to universal credit before a wider look at reform was putting 'the cart before the horse, the vote before the review', and branded the Government's decision-making an 'omnishambles'. Ms Maskell pressed her own amendment to a division, which she lost by 334 votes to 149, majority 185. It would have demanded that out-of-work benefit claimants with a 'fluctuating medical condition' who slip out of and then back into their eligibility criteria either side of the changes would receive their existing – not the lower – rate. Marie Tidball said that during the review of Pip, which Sir Stephen was tasked with leading, 'the voices of disabled people must be front and centre'. She proposed putting a series of legal conditions on the so-called Timms review, including that disabled people should be actively involved in the process. The Labour MP for Penistone and Stocksbridge did not move her amendment to a vote, on the basis Sir Stephen could offer 'further assurances that there will be sufficient link between the Timms review recommendations and subsequent legislation on Pip to ensure accountability and that the voices of disabled people are heard'. The minister said he could give her that assurance, and added that 'the outcome of the review will be central to the legislation that follows'. A total 47 Labour MPs voted against the Bill at third reading including Mr Brash, Ms Maskell, Mother of the House and Hackney North and Stoke Newington MP Diane Abbott, and former minister Dawn Butler. The Bill will undergo further scrutiny in the Lords at a later date.
The Independent
09-07-2025
- Business
- The Independent
Welfare reforms risk leaving stain on Labour, MP warns
A Labour MP who led a rebellion against the Government's benefits plan has labelled it an 'omnishambles', which she warned could leave disabled people worse off. Rachael Maskell said pressing ahead with the welfare reform Bill risked leaving 'such a stain' on her party, as she urged ministers to scrap a proposed change to the out-of-work element of universal credit. Ministers have proposed increasing the universal credit standard allowance at least in line with inflation until 2029/30. But the Government has proposed freezing the 'limited capability for work' (LCW) part of the benefit until 2030, and new claimants who sign up for the 'limited capability for work and work-related activity' payment will receive a lower rate than existing claimants after April 2026, unless they meet a set of severe conditions criteria or are terminally ill. Commons Work and Pensions Committee chairwoman Debbie Abrahams urged the Government to push back its reforms until November 2026. 'This is to allow for the NHS capacity to ramp up and to ensure funding follows health need, so that people with newly required conditions or impairments can receive early treatment and a better aligned labour market that will enable them to return to work quickly,' the Labour MP for Oldham East and Saddleworth told the Commons. 'Without this, there is the risk that 45,000 more newly disabled people and their children will be pushed into poverty.' Ms Abrahams described her pitch as a 'reasonable compromise', costing £141 million in lost savings. Ms Maskell tried to block the Bill's progression at second reading last week using a reasoned amendment, which failed by 149 votes to 328, majority 179. Around 90 minutes before that vote, social security minister Sir Stephen Timms promised in an intervention to halt a proposed reform to the separate personal independence payment (Pip) benefit, with any changes now only coming in after a review. 'The cart before the horse, the vote before the review, and this omnishambles of a Bill, these people with fluctuating conditions not knowing where they stand, and for that, nor where any of us stand by the end of today,' Ms Maskell said on Wednesday. The York Central MP had earlier said: 'No matter what spin, to pass the Bill tonight, this will leave such a stain on our great party, founded on values of equality and justice.' She urged MPs to gut the Bill of plans to roll out a lower rate of out-of-work benefit for new claimants from 2026 and freeze the LCW component. 'Their contention is my contention – sick and disabled people have not been consulted,' Ms Maskell added. She has proposed that current out-of-work benefits claimants should not be put on the proposed lower rate of out-of-work benefit, if they slip out of and then back into the eligibility criteria either side of the changes. 'If someone has a fluctuating physical or mental health condition like multiple sclerosis, schizophrenia, cystic fibrosis, or other recurring muscular-skeletal condition, if following a period of remission and work then relapse and returning to universal credit, unless unequivocally stated, they will return onto the pittance of £50-a-week for their health element,' she said. Sir Stephen intervened and asked her to acknowledge 'how the Bill protects people in exactly the situation that she describes', where claimants are prone to seasonal conditions such as chest infections over the winter. If a pre-2026 claimant slips out of being eligible for universal credit but meets the eligibility criteria again within six months, the Bill would demand that they be considered 'continuously entitled to an award'. It would mean that they could go 'straight back onto the position they are in at the start', the minister added. Labour MP for Penistone and Stocksbridge Marie Tidball urged the Government to properly work with disabled people in the Pip review, known as the Timms review. Ms Tidball, a disabled MP who tabled a cross-party amendment on the Timms review, said: 'While the minister will head up this review, the voices of disabled people must be front and centre. 'The measures in this new clause emphasise the need for disabled people and disabled people's organisations to make up the majority of the taskforce, and to have a significant role in the leadership of the review, and I believe carers could be a part of that.' She said any recommendations must be debated in the Commons before implementation. She said: 'Output of this review must also be meaningful and not performative.' Independent MP Zarah Sultana, who quit Labour last week, spoke in the Commons for the first time since her decision, where she hit out at the Government. The MP for Coventry South MP said: 'The truth is this – Westminster is broken but the real crisis is deeper. This is a Government, not out of touch, but also morally bankrupt. It works for billionaires and big business while turning its back on disabled people.'
Yahoo
09-07-2025
- Business
- Yahoo
Welfare reforms risk leaving stain on Labour, MP warns
A Labour MP who led a rebellion against the Government's benefits plan has labelled it an 'omnishambles', which she warned could leave disabled people worse off. Rachael Maskell said pressing ahead with the welfare reform Bill risked leaving 'such a stain' on her party, as she urged ministers to scrap a proposed change to the out-of-work element of universal credit. Ministers have proposed increasing the universal credit standard allowance at least in line with inflation until 2029/30. But the Government has proposed freezing the 'limited capability for work' (LCW) part of the benefit until 2030, and new claimants who sign up for the 'limited capability for work and work-related activity' payment will receive a lower rate than existing claimants after April 2026, unless they meet a set of severe conditions criteria or are terminally ill. Commons Work and Pensions Committee chairwoman Debbie Abrahams urged the Government to push back its reforms until November 2026. 'This is to allow for the NHS capacity to ramp up and to ensure funding follows health need, so that people with newly required conditions or impairments can receive early treatment and a better aligned labour market that will enable them to return to work quickly,' the Labour MP for Oldham East and Saddleworth told the Commons. 'Without this, there is the risk that 45,000 more newly disabled people and their children will be pushed into poverty.' Ms Abrahams described her pitch as a 'reasonable compromise', costing £141 million in lost savings. Ms Maskell tried to block the Bill's progression at second reading last week using a reasoned amendment, which failed by 149 votes to 328, majority 179. Around 90 minutes before that vote, social security minister Sir Stephen Timms promised in an intervention to halt a proposed reform to the separate personal independence payment (Pip) benefit, with any changes now only coming in after a review. 'The cart before the horse, the vote before the review, and this omnishambles of a Bill, these people with fluctuating conditions not knowing where they stand, and for that, nor where any of us stand by the end of today,' Ms Maskell said on Wednesday. The York Central MP had earlier said: 'No matter what spin, to pass the Bill tonight, this will leave such a stain on our great party, founded on values of equality and justice.' She urged MPs to gut the Bill of plans to roll out a lower rate of out-of-work benefit for new claimants from 2026 and freeze the LCW component. 'Their contention is my contention – sick and disabled people have not been consulted,' Ms Maskell added. I voted against the UC&PIP Bill. It's now due back for next stage in Parliament. My next Amendment 👇would safeguard those with fluctuating conditions, or a recurrence of a condition from being placed onto a lower rate of universal credit#York #UC #PIP — 💙Rachael Maskell MP (@RachaelMaskell) July 9, 2025 She has proposed that current out-of-work benefits claimants should not be put on the proposed lower rate of out-of-work benefit, if they slip out of and then back into the eligibility criteria either side of the changes. 'If someone has a fluctuating physical or mental health condition like multiple sclerosis, schizophrenia, cystic fibrosis, or other recurring muscular-skeletal condition, if following a period of remission and work then relapse and returning to universal credit, unless unequivocally stated, they will return onto the pittance of £50-a-week for their health element,' she said. Sir Stephen intervened and asked her to acknowledge 'how the Bill protects people in exactly the situation that she describes', where claimants are prone to seasonal conditions such as chest infections over the winter. If a pre-2026 claimant slips out of being eligible for universal credit but meets the eligibility criteria again within six months, the Bill would demand that they have been 'continuously entitled to an award'. It would mean that they could go 'straight back onto the position they are in at the start', the minister added. Green Party MP for Brighton Pavilion Sian Berry has proposed increasing the standard allowance beyond inflation by 4.8% from April 2026. Currently, the Bill would set the uplift at 2.3% in 2026/27, rising to 4.8% by 2029/30. Ms Berry said this could be paid through a wealth tax, and added her change would go 'some way' to set universal credit according to 'an objective assessment of what people need'.
