Latest news with #welfareReform
Yahoo
a day ago
- Politics
- Yahoo
Labour MP Vicky Foxcroft quits as government whip over cuts to disability benefits
Labour MP Vicky Foxcroft has quit her job as a government whip in opposition to the government's plans to cut disability benefits. She wrote in a letter to the prime minister that she could not vote "for reforms which include cuts to disabled people's finances". The former shadow minister for disabled people becomes the first MP to quit a government job over the controversial welfare reform plans that have seen over 100 Labour MPs publicly express concern over the proposals. A government spokesperson defended the reforms as "principled" and insisted they will protect the vulnerable. Politics latest: The MP for Lewisham North wrote that the benefits system is in "desperate need of reform", but argued this is not the way to do it. She said: "I absolutely understand the need to address the ever-increasing welfare bill in these difficult economic times, but I have always believed this could and should be done by supporting more disabled people into work. "I do not believe that cuts to personal independence payment (PIP) and the health element of Universal Credit should be part of the solution." Ms Foxcroft said she has "wrestled" with the decision over whether to resign, but said: "Sadly it now seems that we are not going to get the changes I desperately wanted to see. "I therefore tender my resignation as I know I will not be able to do the job that is required of me and whip - or indeed vote - for reforms which include cuts to disabled people's finances." She has received public support from a number of fellow Labour MPs, who praised her "principled" stand on this issue. 'Moral case for change' The government published its bill earlier this week to tighten the eligibility for PIP benefits, and also cuts to the sickness-related portion of Universal Credit. Ministers say these plans will cut £5bn from the welfare budget that is ballooning. The cost of long-term sickness and disability benefits for working-age people has risen by £20bn since the pandemic and is forecast to hit £70bn over the next five years. Ministers have said there is also a moral case for change, with one in eight young people not in education, training, or employment - prompting fears of a "wasted generation". But disability groups say they fear an increase in suicides and mental health conditions. Read more from Sky News:Why cancer patient is praying assisted dying bill passes major voteCompensation scheme for Capture victims announced The government's own assessment forecast an extra 250,000 people could be pushed into poverty - including 50,000 children. It did not include the impact of people moving into work. A government spokesperson said: "This Labour government was elected to deliver change. The broken welfare system we inherited is failing the sick and most vulnerable and holding too many young people back. It is fair and responsible to fix it. "Our principled reforms will ensure those who can work should, that those who want to work are properly supported, and that those with most severe disabilities and health conditions are protected."
Sky News
a day ago
- Politics
- Sky News
Labour MP Vicky Foxcroft quits as government whip over cuts to disability benefits
Labour MP Vicky Foxcroft has quit her job as a government whip in opposition to the government's plans to cut disability benefits. She wrote in a letter to the prime minister that she could not vote "for reforms which include cuts to disabled people's finances". The former shadow minister for disabled people becomes the first MP to quit a government job over the controversial welfare reform plans that have seen over 100 Labour MPs publicly express concern over the proposals. A government spokesperson defended the reforms as "principled" and insisted they will protect the vulnerable. The MP for Lewisham North wrote that the benefits system is in "desperate need of reform", but argued this is not the way to do it. She said: "I absolutely understand the need to address the ever-increasing welfare bill in these difficult economic times, but I have always believed this could and should be done by supporting more disabled people into work. "I do not believe that cuts to personal independence payment (PIP) and the health element of Universal Credit should be part of the solution." Ms Foxcroft said she has "wrestled" with the decision over whether to resign, but said: "Sadly it now seems that we are not going to get the changes I desperately wanted to see. "I therefore tender my resignation as I know I will not be able to do the job that is required of me and whip - or indeed vote - for reforms which include cuts to disabled people's finances." She has received public support from a number of fellow Labour MPs, who praised her "principled" stand on this issue. 'Moral case for change' The government published its bill earlier this week to tighten the eligibility for PIP benefits, and also cuts to the sickness-related portion of Universal Credit. Ministers say these plans will cut £5bn from the welfare budget that is ballooning. 2:47 The cost of long-term sickness and disability benefits for working-age people has risen by £20bn since the pandemic and is forecast to hit £70bn over the next five years. Ministers have said there is also a moral case for change, with one in eight young people not in education, training, or employment - prompting fears of a "wasted generation". But disability groups say they fear an increase in suicides and mental health conditions. The government's own assessment forecast an extra 250,000 people could be pushed into poverty - including 50,000 children. It did not include the impact of people moving into work. A government spokesperson said: "This Labour government was elected to deliver change. The broken welfare system we inherited is failing the sick and most vulnerable and holding too many young people back. It is fair and responsible to fix it. "Our principled reforms will ensure those who can work should, that those who want to work are properly supported, and that those with most severe disabilities and health conditions are protected."
The Independent
2 days ago
- Business
- The Independent
Welfare reform legislation to be debated next month, MPs told
Proposed legislation to reform the welfare system will be debated by MPs for the first time next month, Commons Leader Lucy Powell has announced. MPs are also expected to vote on the Universal Credit and Personal Independence Payment Bill on July 1, when it receives its second reading in the Commons. The Government has faced backlash from some Labour MPs over the 'damaging disability benefit cuts', which it has said could save up to £5 billion a year. Ms Powell set the date for the Bill's second reading during business questions on Thursday. Labour MP Neil Duncan-Jordan has accused the Government of 'rushing through' the Bill, adding: 'This isn't something I'm prepared to support.' Ministers are likely to face a Commons stand-off with backbenchers over their plans, with dozens of Labour MPs last month saying the proposals were 'impossible to support'. The reforms – aimed at encouraging more people off sickness benefits and into work – are set to include the tightening of criteria for personal independence payment (Pip), which is the main disability benefit, as well as a cut to the sickness-related element of universal credit (UC) and delayed access to only those aged 22 and over. Work and Pensions Secretary Liz Kendall said the legislation 'marks the moment we take the road of compassion, opportunity and dignity'. She added: 'Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.' In what could be seen as an attempt to head off some opposition, the legislation will give existing claimants a 13-week period of financial support. The Department for Work and Pensions said this will apply to those affected by changes to the Pip daily living component, including those who lose their eligibility to Carers Allowance and the carer's element of UC. But campaigners, including disability equality charity Scope, said the longer transition period, up from an originally expected four weeks, 'will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end'. As the Bill was formally introduced to the Commons on Wednesday, and the question was asked as to what the next date for debate will be, former Labour MP John McDonnell, who now sits as an independent for Hayes and Harlington, could be heard to say 'Never'. Mr Duncan-Jordan, MP for Poole, is one of the members who has urged ministers to withdraw the cuts, which he has argued will 'make things worse' for disabled people. Speaking to the PA news agency, he said: 'It's clear the Government are rushing through this change before MPs have received all the necessary impact assessments that they need to make a decision. 'The Bill lays out how large numbers of disabled people are going to be made poorer. This isn't something I'm prepared to support.' Earlier this week, Mr Duncan-Jordan had said: 'The Government will only withdraw its damaging disability benefit cuts if Labour MPs make clear they will vote against them. 'The so-called concessions that have been suggested are nowhere near enough to undo the damage that is being proposed. The facts are undeniable: these cuts won't create jobs, they'll only push three million people deeper into hardship.' The latest data, published on Tuesday, showed that more than 3.7 million people in England and Wales are claiming Pip, with teenagers and young adults making up a growing proportion. 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. Data for Pip claimants begins in January 2019, when the number stood at 2.05 million. An impact assessment published alongside Wednesday's Bill introduction confirmed previously published estimates that changes to Pip entitlement rules could see about 800,000 people lose out, with an average loss of £4,500 per year. 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'. The impact assessment also confirmed a previous estimate that some 250,000 more people, including 50,000 children, are likely to fall into relative poverty after housing costs in 2029/2030, although the Government repeated that this does not take into account the potentially positive impact of £1 billion annual funding by then for measures to support people into work. Changes to UC are expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year. But the Government said around 3.9 million households not on the UC health element are expected to have an average annual gain of £265 from the increase in the standard UC allowance. While all of the Bill applies to England and Wales, only the UC changes apply to Scotland. The Government said there are equivalent provisions to legislate for Northern Ireland included in the Bill.
Telegraph
2 days ago
- Business
- Telegraph
Disability benefit claimants to rise by 750,000 despite Starmer reforms
The number of people claiming disability benefits in Britain will jump by 750,000 over the next five years despite Sir Keir Starmer's attempt to reduce the welfare bill, the Government has admitted. An official impact assessment of Labour's benefits reforms found that the total cost of two disability benefits would increase by £8 billion by 2030 as the number of claimants continued to soar. The rate will rise despite a crackdown on the criteria for some benefits by Sir Keir that prompted a rebellion from Labour backbenchers. There are around five million people currently claiming disability benefits in England and Wales, including 3.7 million on PIP (personal independence payment) and a further 1.4 million on disability living allowance (DLA). The Government had warned that figure was set to spiral in the coming years without reform to the benefits system, because of a large increase in claimants with mental health conditions and a rise in fraud. But even with Labour's changes, the number will increase by 750,000 people by 2030, while costs will increase from £23 billion to £31 billion a year. Labour's changes include a new, tougher criteria for PIP, as well as a cut to the sickness-related element of Universal Credit (UC). Ministers estimate that these reforms will save £5 billion a year by the end of this Parliament. Liz Kendall, the Work and Pensions Secretary, previously said there were 1,000 new PIP awards every day, which she described as adding a city the size of Leicester to the welfare books every year. On Wednesday, the Government laid the legislation to enact its welfare reforms, which Ms Kendall said marked 'the moment we take the road of compassion, opportunity and dignity'. But Labour rebels pointed to the Government's own figures showing that 250,000 more people, including 50,000 children, are likely to fall into poverty by 2030 because of the changes. The impact assessment on Wednesday confirmed previously published estimates that changes to PIP entitlement rules could see about 800,000 people lose out, with an average loss of £4,500 per year. The changes to UC are expected to mean an estimated 2.25 million people lose an average of £500 per year. The UC losses are to people claiming an additional rate of the benefit because they have a 'limited capacity to work', which the Government says encourages jobless people not to go back into employment. Ministers argue that 3.9 million households who do not claim the extra allowance will gain an average of £265 each year from an increase to the standard allowance. Rebel MPs have secured a concession from ministers that PIP and UC claimants losing some benefits will be given a 13-week financial support package, up from a planned four-week package. But documents show the Government has ignited fury from Labour MPs without securing an overall reduction in the cost of welfare, while the number of people claiming disability benefits will rise by around 15 per cent. The £8 billion cost increase under the new system is equivalent to around five times the annual revenue that Labour says it will receive from imposing VAT on private schools, and more than the cost of building Britain's two aircraft carriers. The impact assessment said that without reform, the cost of working-age sickness and disability benefits would have increased by £18 billion a year to a total £70 billion. 'The increase alone is more than the entire police budget,' the document said. Ms Kendall told MPs that Britain's social security system was 'at a crossroads' as a result of rising costs since the pandemic. She said: 'Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. 'This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity. 'This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot.' Sir Keir said he was 'determined' to ensure the reforms go through because he feels the welfare system 'doesn't work for anyone'. 'It doesn't work for those that want to get back to work, and it certainly doesn't work for the taxpayer,' the Prime Minister told ITV, adding that 'those that need to be protected should be protected'.
The Independent
2 days ago
- Business
- The Independent
Welfare reform marks moment of compassion, says Kendall amid backbench anger
The introduction of proposed legislation to reform the welfare system 'marks the moment we take the road of compassion, opportunity and dignity', the Work and Pensions Secretary has said. Liz Kendall's words come amid a backlash from some Labour MPs who have criticised the 'awful' cuts to welfare – which the Government hopes can save up to £5 billion a year. The reforms – aimed at encouraging more people off sickness benefits and into work – are set to include the tightening of criteria for personal independence payment (Pip), which is the main disability benefit, as well as a cut to the sickness-related element of universal credit (UC) and delayed access to only those aged 22 and over. 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'. In what could be seen as an attempt to head off some opposition, the legislation – known as the Universal Credit and Personal Independence Payment Bill – will give existing claimants a 13-week period of financial support. The Department for Work and Pensions said this will apply to those affected by changes to the Pip daily living component, including those who lose their eligibility to Carers Allowance and the carer's element of UC. But campaigners, including disability equality charity Scope, said the longer transition period, up from an originally expected four weeks, 'will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end'. Food bank network Trussell said: 'The last-minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut. 'The reality of this Bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015.' Contrary to Ms Kendall's words, learning disability charity Mencap accused the Government of having 'confirmed the choice to turn its back on thousands of disabled people and by pushing ahead with these welfare reforms, they are causing a huge amount of anxiety'. Ms Kendall said: 'Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. 'This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity. 'This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.' As the Bill was formally introduced to the Commons on Wednesday, and the question asked as to what the next date for debate will be, Labour backbencher and former shadow chancellor John McDonnell could be heard to say 'Never'. A date has not yet been confirmed. Louise Murphy, senior economist at the Resolution Foundation think tank said the longer period of protection for those affected by Pip cuts is 'a sensible tweak that should ease the blow for those who are no longer eligible for support'. But she criticised extra funding for employment support not coming fully into effect until 2029 at the earliest, saying: 'While ministers have softened the stick of welfare cuts, they have not strengthened the carrot of greater employment support.' Sir Keir Starmer said he was 'determined' to ensure the reforms go through because he feels the welfare system 'doesn't work for anyone'. 'It doesn't work for those that want to get back to work, and it certainly doesn't work for the taxpayer,' the Prime Minister told Good Morning Britain, saying 'those that need to be protected should be protected'. 'If you need help in support to get into work, the Government should be providing that support and help to get into work,' he said. 'If you do have conditions, disabilities that mean it is impossible for you to work, then you need to be properly protected and supported.' The latest data, published on Tuesday, showed 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 figures, published by the Department for Work and Pensions, 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. 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. An impact assessment published alongside Wednesday's Bill introduction, confirmed previously published estimates that changes to Pip entitlement rules could see about 800,000 people lose out, with an average loss of £4,500 per year. 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'. The impact assessment also confirmed a previous estimate that some250,000 more people, including 50,000 children, are likely to fall into relative poverty after housing costs in 2029/2030, although the Government repeated that this does not take into account the potentially positive impact of £1 billion annual funding by then for measures to support people into work. Changes to UC are expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year. But the Government said around 3.9 million households not on the UC health element are expected to have an average annual gain of £265 from the increase in the standard UC allowance. While all of the Bill applies to England and Wales, only the UC changes apply to Scotland. The Government said there are equivalent provisions to legislate for Northern Ireland included in the Bill.
