Latest news with #Pips
Spectator
13-06-2025
- Business
- Spectator
The Welfare Bill is too little, too late
How much of the government's Welfare Reform Bill will survive the mauling of backbench Labour MPs? If this bill even achieves £5 billion worth of savings by the time it becomes law, it will be something of a miracle. Once again, Rachel Reeves' claim to be an 'Iron Chancellor' is about to be tested. No-one should be surprised if she folds. This week, the wobbling began. In her post-spending review interview with the Today programme, Reeves initially said that she would not be reviewing the proposed changes to the criteria for claiming Personal Independence Payments (Pips), which are supposed to mean that hundreds of thousands of people are no longer eligible. Then she hinted that she would be listening to objections from within her party.
Yahoo
09-06-2025
- Business
- Yahoo
Labour MPs call for action on benefits after winter fuel U-turn
Labour MPs have broadly welcomed the government's decision to reinstate winter fuel payments for three-quarters of pensioners but some are using the U-turn to renew their calls for planned benefit cuts to be reversed. Nine million pensioners in England and Wales with an annual income of £35,000 or less will now be eligible for up to £300 to help with energy bills this winter. Labour MPs thanked the government for listening to their concerns, arguing means testing the payment was fair but that the threshold was set too low last year. However, several urged ministers to also think again on planned cuts to disability payments, while others called for the two-child benefit cap to be scrapped. Under planned changes to the benefits system it would be harder for people with less severe conditions to claim personal independence payments (Pips), while the government is promising more support to help people get into work. While the two-child benefit cap policy prevents most families from claiming means-tested benefits for any third or additional children born after April 2017, which critics say has pushed people into poverty. Ministers are considering lifting the cap, with a decision expected in the autumn, when a child poverty strategy is published. Pressure from Labour backbenchers over the issues - as well as on winter fuel payments - has been growing since the party's poor performance at local election's in May. The winter fuel payment was previously paid to all pensioners but last year the government announced only those receiving pension credit or another means-tested benefit would be eligible in England and Wales. The original cut last year was estimated to save £1.7bn, with the government arguing it was necessary because of the state of the public finances. But the move, which meant more than 10 million pensioners did not receive the payment in 2024, was criticised by charities, unions, opposition parties and many Labour MPs. Following mounting pressure, Prime Minister Sir Keir Starmer announced a U-turn last month, with the details of who will get the payment this winter set out on Monday. The chancellor said she would detail how the £1.25bn policy would be paid for in the autumn Budget. How much is the winter fuel payment and who will get it? Labour hope to put winter fuel misstep behind them At-a-glance: Key changes to benefits in welfare shake-up Imran Hussain was among the Labour MPs to call for the planned benefit cuts to be scrapped in response to a government statement in the Commons on changes to winter fuel payments. "It is clear the government has listened, so I ask them to listen again to the growing calls in this chamber and scrap their planned, devastating cuts to disability support," the MP for Bradford East said. Fellow Labour MPs Nadia Whittome and Richard Burgon also welcomed the winter fuel U-turn but urged the government to listen to backbench concerns over benefit cuts. In response, Torsten Bell, who is both a Treasury minister and pensions minister, told MPs there needed to be "a better system focusing on supporting those who can work into work". He added that the status quo - where 1,000 people a day are going onto Pips - was not "a position that anybody should support". Labour MP Rachael Maskell, who has been a leading campaigner for restoring winter fuel payments, welcomed the government's change in policy, saying it was "long overdue". She told BBC Radio 4's World at One programme the £35,000 salary threshold for the payment was a "sensible measure". However, Maskell called on the government to consider a larger payment following increases in energy prices over the past year. The MP for York Central also urged a rethink on planned benefit cuts, adding: "You can't rob disabled people in order to pay older people, that doesn't make sense." Meanwhile, she was among several MPs to reiterate their calls for the government to scrap the two-child benefit cap. In the Commons Rebecca Long Bailey, Labour MP for Salford, also asked for reassurances minsters "are doing all they can to outline plans to lift the two-child cap on universal credit as soon as possible" to bring children out of poverty. In response Bell said "all levers to reduce child poverty are on the table". The minister added: "She's absolutely right to raise this issue, it is one of the core purposes of this government. "We cannot carry on with a situation where large families, huge percentages of them, are in poverty." The Conservatives have called for the government to apologise to pensioners who lost out on winter fuel payments last year. Shadow work and pensions secretary Helen Whately described the U-turn as "the most humiliating climbdown a government has ever faced in its first year in office". She told the Commons "this rushed reversal raises as many questions as it answers", arguing the move was "totally unfunded" and could lead to tax rises. Liberal Democrat leader Sir Ed Davey said: "Finally the chancellor has listened to the Liberal Democrats and the tireless campaigners in realising how disastrous this policy was, but the misery it has caused cannot be overstated. "Countless pensioners were forced to choose between heating and eating all whilst the government buried its head in the sand for months on end, ignoring those who were really suffering." Sign up for our Politics Essential newsletter to read top political analysis, gain insight from across the UK and stay up to speed with the big moments. It'll be delivered straight to your inbox every weekday.
Yahoo
09-05-2025
- Business
- Yahoo
Rachel Reeves Sends Message To Labour MPs Unhappy About Welfare Cuts
Rachel Reeves has hit back at Labour MPs calling for the government to rethink its cuts to welfare reform. More than 40 MPs from across the party have written to prime minister Keir Starmer urging him to reassess the planned cuts to disability benefits this week. The government intends to tighten the eligibility for personal independent payments (Pips) to save around £5bn per year in a move which is expected to affect around 700,000 people. The MPs warned that the proposals have 'caused a huge amount of anxiety and concern among disabled people and their families'. A Commons vote on the plan is expected in June. If all of the MPs who wrote to the prime minister rebelled against the government, it would be Labour's largest revolt since being elected in July. However, speaking to broadcasters on Friday, the chancellor doubled down on the government's plans, saying that it was crucial for the whole system to be reformed. Reeves said: 'I don't think anybody, including Labour MPs and members, think that the current welfare system created by the Conservative party is working today. 'They know that the system needs reform. We do need to reform how the welfare system works if we're going to grow our economy. 'But crucially, if we're going to lift people out of poverty and give more people the chance to fulfil their potential, the focus has got to be on supporting people into work. 'Of course, if you can't work the welfare state must always be there for you, and with this government it will be. But there are many people that are trapped on benefits that are desperate to work, that have been cut out of opportunity for too long. That will change under this government.' 'We will step up and help people fulfil their potential,' says Chancellor Rachel Reeves as she outlines welfare reform plans focused on getting more people into work adding 'It is the priority of this government." Sky 501, Freeview 233 and YouTube — Sky News (@SkyNews) May 9, 2025 The backlash follows a particularly poor performance from Labour in the local elections, where right-wing party Reform UK took more than 600 council seats and won the Runcorn and Helsby by-election. HuffPost UK also revealed today that the chancellor has held talks this week on the possibility of changing Labour's winter fuel payment policy following intense backlash. It comes amid growing anger among Labour MPs at the electoral damage being done by the plan. Rachel Reeves Exclusive: Chancellor Denies Welfare Reforms Will Push 250,000 Into Poverty Spring Statement 2025: More Than 3 Million To Be Hit By 'Catastrophic' Welfare Cuts Exclusive: Rachel Reeves Has Been Involved In Talks On Changing Labour's Winter Fuel Payment Policy
The National
08-05-2025
- Business
- The National
MPs tell Keir Starmer disability benefit cuts impossible to support
In a letter from the 42 parliamentarians, who represent both veteran and new Labour MPs spanning from the party's left and right, Starmer has been urged to change the direction of his leadership, the Guardian has reported. The Prime Minister has already faced widespread criticism from members of his own party over the proposed £5 billion in benefit cuts, which includes the significant tightening of eligibility for personal independent payments (Pips). The Chancellor of the Exchequer, Rachel Reeves's planned disability benefit cuts would affect around 700,000 families who are already in poverty. READ MORE: Supporting Ukraine is about defending the values that unite Europe Brian Leishman is the only Scottish Labour MP among the signatories, which includes names like Diane Abbott and Kim Johnson. Starmer now faces the biggest rebellion of his premiership when the House of Commons votes on the proposed measures next month. In the letter, Labour MPs said the proposals, set out in a government green paper, have 'caused a huge amount of anxiety and concern among disabled people and their families'. (Image: PA) It goes on to say: 'The planned cuts of more than £7bn represent the biggest attack on the welfare state since George Osborne ushered in the years of austerity and over 3 million of our poorest and most disadvantaged will be affected.' It added: 'Whilst the government may have correctly diagnosed the problem of a broken benefits system and a lack of job opportunities for those who are able to work, they have come up with the wrong medicine. Cuts don't create jobs, they just cause more hardship.' The letter calls on ministers to delay any decisions until they see full assessments on the impact of any cuts, raising concerns that they are being asked to approve the plans without proper knowledge of the consequences. Adding that there needs to be 'a genuine dialogue with disabled people's organisations to redesign something that is less complex and offers greater support, alongside tackling the barriers that disabled people face when trying to find and maintain employment'. It adds: 'We also need to invest in creating job opportunities and ensure the law is robust enough to provide employment protections against discrimination. Without a change in direction, the green paper will be impossible to support.'
BBC News
03-05-2025
- Politics
- BBC News
'Not Labour enough': MPs' despair at voters' verdict on government
"We are losing to everyone, everywhere." That could be a quote from a Conservative, as the previous party of government struggles to rebuild trust with the electorate. But it isn't. It's a despairing message from a new Labour MP, elected in last year's general election landslide. Labour had a terrible night when many of the county council seats up for grabs in Thursday's English local elections were last contested in 2021. So far, today's results are even worse. Labour should have been within shouting distance of regaining control of Durham -but their vote tumbled. Before the result was announced, a former Labour MP texted to say - in colourful language – just how grim the political landscape was in the North East. And where voters were determined to oust the Conservatives in Staffordshire, they turned to Reform UK not Labour to do so. This has prompted calls for Sir Keir Starmer to change direction. The Labour Mayor of Doncaster Ros Jones - who had her majority slashed - blamed the withdrawal of winter fuel allowance from most pensioners, and urged a rethink on the forthcoming cuts to personal independence payments (Pips) fordisabled people. Labour MP Richard Burgon – a shadow minister under Sir Keir's left wing predecessor Jeremy Corbyn – agreed. He said the current party leadership needed to "change course" and suggested that these policies were "driving away our own voters, and letting Reform squeeze through." The Labour leadership won't be quaking in its boots when attacked by the Left. But what is noteworthy is that - off the record - some MPs from across the party are making not dissimilar points, and have been contacting the BBC (and not vice versa) to make them.
