Flagship welfare reform plans to be introduced in Parliament

The Welfare Reform Bill will be introduced in the House of Commons, and its text will be published so MPs can begin scrutiny of the proposals.
The major reforms are set to include the tightening of criteria for the main disability benefit in England, personal independence payment (Pip).
I'll vote against these awful welfare reforms.
A Labour government should lift people out of poverty, not put people into it.
If you agree, then please write to your MP and tell them that. pic.twitter.com/9hvZfe9Cpf
— Brian Leishman (@BrianLeishmanMP) June 17, 2025
Ministers also want to cut the sickness related element of universal credit (UC), and delay access to it, so only those aged 22 and over can claim it.
The package of reforms is aimed at encouraging more people off sickness benefits and into work, and the Government hopes it can save up to £5 billion a year by doing so.
But ministers are likely to face a Commons stand-off with backbench Labour MPs over their plans, with dozens of them last month saying the proposals were 'impossible to support'.
The Bill is set to be introduced as the latest benefits data has shown that more than 3.7 million people in England and Wales are claiming Pip, with teenagers and young adults making up a growing proportion.
The latest data, published by the Department for Work and Pensions on Tuesday, showed there were a record 3.74 million people in England and Wales claiming Pip as of April this year.
The figure is up from 3.69 million in January and a jump of 200,000 from 3.54 million a year earlier.
(PA Graphics)
Data for Pip claimants begins in January 2019, when the number stood at 2.05 million.
Pip is a benefit aimed at helping with extra living costs if someone has a long-term physical or mental health condition or disability and difficulty doing certain everyday tasks or getting around because of their condition.
Teenagers and young adults account for a growing proportion of those getting Pip.
Some 16.5% of claimants in April this year were aged 16-19, up from 14.6% in April 2019.
The 30-44 age group has similarly grown, while the number of 45-59 year-olds has fallen.
The figure for 60-74 year-olds has risen slightly over this period, from 29.3% to 30.8%.
It was reported in recent days that Work and Pensions Secretary Liz Kendall has agreed to include 'non-negotiable' protections in the Bill, including a guarantee that those who no longer qualify for Pip will still receive the payments for 13 weeks, rather than just four weeks.
Work and Pensions Secretary Liz Kendall leaves Downing Street, London, after a Cabinet meeting (Stefan Rousseau/PA)
The concession is seen as a move to avert a rebellion by Labour MPs opposed to the overall reforms, but have been described as 'not very much really' by one such parliamentarian.
Downing Street insisted it was 'crucial to say we are committed to the reforms that we've set out'.
A No 10 spokesman said: 'You've heard that from the Prime Minister, the Chancellor, the Work and Pensions Secretary, on the principles behind this and the urgent need for this.
'You have the statistics, they show we have the highest level of working age inactivity due to ill health in Western Europe.
'We're the only major economy whose employment rate hasn't recovered since the pandemic.'
Pip will remain 'an important non-means-tested benefit for disabled people and people with long-term health conditions, regardless of whether they are in or out of work', he said, but added the Government would build a 'system that is fairer' through its reforms.
It is thought the restrictions on Pip would slash benefits for about 800,000 people.
Ms Kendall previously said there are 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year'.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Daily Mirror

40 minutes ago

• Daily Mirror

Labour industrial strategy's £275m boost 'backs young people in whole country'

The long-awaited strategy will include a £275million boost to skills training for the one in seven young people out of work and education - backing British talent instead of importing workers from overseas Labour's long-awaited industrial strategy will prove the Government is 'on the side of working people' across the whole country the Industry minister vows ahead of its publication on Monday. The strategy is intended to boost key sectors of the economy for the next decade, with advanced manufacturing, clean energy and defence among the sectors to see increased focus. ‌ Today, Business Secretary Jonathan Reynolds vowed to 'power the industrial strategy by investing in working people' ‌ He promised a £275million boost to skills training for the one in seven young people out of work and education - backing British talent instead of importing workers from overseas. And writing for the Sunday Mirror Sarah Jones, the Industry Minister said the strategy would not just focus on London and the south east. 'From Belfast to Barrow, Derby to Dundee, our modern Industrial Strategy will build on the world-leading strengths of our nations and regions to turbocharge investment into our communities, raising wages and living standards for working people,' she wrote. 'We're not just putting a sticking plaster over the cracks of the economy. We're setting out a plan to fix the problems that have plagued us for years.' The training cash will fund the creation of new 'Technical Excellence Colleges' to provide cutting-edge courses in defence and engineering. It's been targeted to address the UK's skills gaps which leave businesses struggling to find people with the talents and skills they need. ‌ 'To make Britain the best place in the world to do business, we also need the best workforce in the world with the right skills and expertise to thrive,' Mr Reynolds said. 'Where past governments have watched from the sidelines as British industry has faced under-investment and opportunities have been shipped overseas, this government is leading the way, and our modern Industrial Strategy is a downpayment on a decade of renewal.' The UK's last industrial strategy was in 2017, when the Tories published a four-year plan ending in 2021. We're giving young people a chance to succeed By SARAH JONES, Minister for Industry This government is on the side of working people. And our modern Industrial Strategy, which we will publish tomorrow, will prove that beyond doubt. For the past 14 years, governments have sat on the sidelines watching British industry struggle – no direction, no support and no strategy. ‌ Neglecting our world-class industrial sectors and leaving workers in the lurch, while only worsening the gap between rich and poor and extending the north-south divide. Even before we entered Government we have been listening to industry and knew bold action was needed. Working hand in hand with industry and the workforce we will take the action needed to keep jobs and investment on our shores for decades to come. And the UK means the whole of our country: not just London or the Southeast. ‌ From Belfast to Barrow, Derby to Dundee, our modern Industrial Strategy will build on the world-leading strengths of our nations and regions to turbocharge investment into our communities, raising wages and living standards for working people. We're not just putting a sticking plaster over the cracks of the economy. We're setting out a plan to fix the problems that have plagued us for years. Currently one in seven young people are unemployed or out of education. We're giving them the chance to succeed by creating thousands of new training opportunities and transforming Britain's skills system, with more than £275 million in new investment to help British workers secure good, well-paid jobs in the industries of tomorrow. ‌ This will fund new training, short courses and other education opportunities right across the country in sectors like defence, AI, clean energies and advanced manufacturing. These are sectors where the UK is already world-leading, and which are expected to add £158 billion to our economy by 2035 and create an astounding 1.1 million new, well-paid jobs. Our skills overhaul will also set up new Technical Excellence Colleges across the UK to help train thousands of new skilled workers by 2029, in careers like engineering, programming and IT systems, helping Britain to stay competitive on the global stage. But that's just the tip of the iceberg. Tomorrow, our new Strategy will set out how we'll invest billions in our high-growth sectors in every part of the country: creating thousands of secure, well-paid and high-skilled jobs, backed by employment rights fit for a modern economy. The number one mission of this government's Plan for Change is growth, and putting more money in working people's pockets. And that's exactly what our modern Industrial Strategy will do.

Western Telegraph

41 minutes ago

• Western Telegraph

Starmer puts skills training at heart of industrial strategy plan

The decade-long plan for 'national renewal' will include £275 million in skills investment to train Britons to do jobs in growth industries which might otherwise require imported labour. The strategy will include specific funding to train people for work in defence, engineering, digital and construction roles. Business Secretary Jonathan Reynolds said the strategy 'will help transform our skills system to end the overreliance on foreign labour and ensure British workers can secure good, well-paid jobs in the industries of tomorrow and drive growth and investment right across the country'. Business Secretary Jonathan Reynolds wants the skills plan to reduce reliance on foreign workers (Ben Whitley/PA) Monday's industrial strategy will be followed later in the week by a new trade plan intended to make the UK the best-connected country in the world to do business. The Prime Minister will launch the industrial strategy hoping it will help in his mission of delivering economic growth. The economy shrank by 0.3% in April, the biggest monthly contraction in gross domestic product for a year-and-a-half, as businesses felt the impact of global uncertainty caused by Donald Trump's tariffs and domestic pressure as a result of hikes to firms' national insurance contributions. Around one-in-seven young people are not in education or employment, and the number of people taking an apprenticeship has fallen by almost a fifth between 2016/17 and 2023/24. The Government hopes the growth sectors identified in the industrial strategy will create 1.1 million new jobs by 2035. The skills package includes capital investment from a £200 million fund which will support new facilities including 'technical excellence colleges' providing specialised training for local industries. The total funding is expected to train thousands more workers by 2029 including computer programmers, IT technicians, electrical and civil engineers. Education Secretary Bridget Phillipson said: 'Skills rightly run right through the heart of this industrial strategy because they are key to breaking the link between background and success for young people and delivering prosperity for our country.' Stephen Phipson, the boss of manufacturers' organisation Make UK, welcomed the skills announcement. 'We look forward to working with the Government to fix the skills gap in manufacturing, which has been the sector's Achilles' heel for decades,' he said. Other elements of the plan are expected to include measures to help cut energy costs for industries which have complained they are being forced to compete with rivals overseas who face lower bills. Meanwhile some £380 million will be spent on a range of projects intended to double private investment in the creative industries. Shadow business secretary Andrew Griffith welcomed the investment in skills but said 'the Government are stepping on the accelerator and the brake at the same time' by hiking national insurance for firms and introducing extra employment rights which could increase costs. 'This inherent contradiction cannot make for a feasible or serious strategy, and will hold the Government to account for it,' he said.

The Guardian

an hour ago

• The Guardian

UK government unveils £275m investment in training and apprenticeships in Ebgland

The government will present a £275m investment in technical training and apprenticeships as the centrepiece of its long-awaited industrial strategy, in a direct challenge to Nigel Farage's growing influence in England's manufacturing heartlands. The package, announced by the business secretary, Jonathan Reynolds, on Sunday, includes funding for new technical excellence colleges, short courses in artificial intelligence (AI) and digital manufacturing, and major capital upgrades to training providers across England. It aims to tackle longstanding skills shortages in engineering, defence and high-growth sectors such as battery production and advanced manufacturing. Officials said the new strategy was designed to 'end the overreliance on foreign labour' and ensure a pipeline of domestic talent for critical industries – a move clearly aimed at countering Farage's narrative of national decline and reclaiming the industrial vote in traditional Labour strongholds. While the £275m pledge is not a full industrial funding package – and falls short of sector-wide subsidies or energy cost changes – it is being positioned by ministers as the first concrete step in a broader 10-year plan for growth. The full strategy, due to be published this week, will also include a new trade strategy focused on exports, supply chains and making the country 'the best-connected place in the world to do business'. Reynolds said the skills funding marked a shift away from decades of managed decline. 'Our modern industrial strategy will be powered by investing in British people,' he said. 'It will help transform our skills system to end the overreliance on foreign labour, and ensure British workers can secure good, well-paid jobs in the industries of tomorrow and drive growth and investment right across the country.' The announcement comes as Reform UK intensifies efforts to peel off Labour voters in post-industrial seats, with Farage promising to restore manufacturing and impose tougher immigration rules. While Labour has promised a broad 'plan for change', the industrial strategy has been delayed for months as ministers wrestled with how best to rebuild support in regions hit hardest by automation, outsourcing and underinvestment. The timing now is deliberate – a policy-heavy counteroffensive in the so-called red wall, where Reform UK has surged in recent polling. The skills package responds to a stark reality: one in seven young people are not in education or employment, and the number of apprenticeships has fallen by nearly 20% since 2016. The education secretary, Bridget Phillipson, called the strategy an 'economic and social reset'. 'Skills rightly run right through the heart of this industrial strategy because they are key to breaking the link between background and success for young people,' she said. The strategy builds on previous announcements, including a £187m package for AI training announced during London Tech Week and a £3bn apprenticeship fund to create 120,000 places in healthcare, carpentry and construction. But the scale of new funding is modest – about £275m spread over four years, including roughly £200m for infrastructure and course delivery – and Labour may face pressure from industry and unions to go further in reforming the apprenticeship levy, immigration skills charge and energy costs for heavy industry.