Minister declines to rule out tax rises after welfare concessions – UK politics live

Pat McFadden says there will be ‘financial consequences’ to Keir Starmer’s climbdown amid renewed speculation over Labour’s budget plans

Helen Miller, the new head of the Institute for Fiscal Studies thinktank, said the lack of savings from the personal independence payments (Pip) changes made tax rises “increasingly likely” at the budget and that the chancellor, Rachel Reeves, now had “very little wriggle room”.

The welfare bill as it stood would now not create any savings, she told Today:

By the end of this parliament the government will save nothing.

After govt’s 11th hour 59th minute climbdown over Pip it’s time for Reeves to go back to the drawing board and look for fairer and more sensible ways to raise money – like a wealth tax on multimillionaires and billionaires to raise up to £24bn a year.

Continue reading...

Welfare bill climbdown will have ‘a cost’ at budget, says senior minister

Pat McFadden says U-turn will change calculations, as IFS says tax rises in autumn look increasingly likely

There will be “a cost” to the government’s climbdown on welfare changes at the budget, one of Keir Starmer’s senior ministers has said, as a leading fiscal thinktank said new tax rises appeared increasingly likely.

Pat McFadden, the chancellor of the Duchy of Lancaster, defended Starmer and the work and pensions secretary, Liz Kendall, after the second reading of the government’s main welfare bill passed its first Commons test only after a central element was removed.

Continue reading...

Wednesday briefing: ​​Has Starmer’s welfare reform bill victory left a fractured Labour party in its wake?

In today’s newsletter: After frantic late negotiations, the government’s welfare overhaul has ​passed – now saving almost none of the money that the government said was crucial to its success

Good morning. To his loveless landslide, Keir Starmer can now add a vapid victory. Last night, the government’s flagship welfare reform bill passed its second reading in the House of Commons by 335 votes to 260 – a majority of 75. But after last-minute concessions from the government to secure the bill’s passage, a set of measures whose intended savings had already fallen from £5bn to £2.5bn a year, now looks like recouping much closer to nothing.

The central climbdown, where plans for deep cuts to the personal independence payment (Pip) in the future were shelved, has been celebrated by disabled people and the charities who represent them. They had feared that the support they rely on was about to be ripped away. But it is also a measure of how disastrous the whole process has been for Starmer.

Israel-Gaza war | Donald Trump says that Israel has accepted conditions of a ceasefire after US-Israeli talks and urged Hamas to agree. The US president did not give details of the terms and there is no indication that Hamas will accept them.

NHS | Three bosses at the hospital where Lucy Letby worked have been arrested on suspicion of gross negligence manslaughter, police have said. The three, who have not been named, were arrested as part of the investigation into the actions of leaders at the Countess of Chester hospital.

UK news | The home secretary is coming under increasing pressure to abandon plans to ban Palestine Action, as UN experts and hundreds of lawyers warned that proscribing the group would conflate protest and terrorism.

US news | The jury in the high-profile federal sex-trafficking and racketeering conspiracy trial of Sean “Diddy” Combs concluded the day without a verdict on Tuesday, unable to come to a decision on one of the five counts. The judge advised the jury to “keep deliberating”.

Extreme heat | Outdoor working has been banned during the hottest parts of the day in more than half of Italy’s regions, as an extreme heatwave that has smashed June temperature records in Spain and Portugal continues to grip large swathes of Europe.

Continue reading...

No 10 guts welfare bill in big new concession as minister says Pip cuts planned for 2026 shelved until after Timms review – UK politics live

Switch to four-point Pip eligibility rule may never happen at all as Stephen Timms says government will ‘remove clause five from the bill’

Compass, the leftwing group urging Labour to be more pluralistic, has put out a statement condemning the UC and Pip bill. Its director, Neal Lawson, said:

If your own friends are telling you to put the brakes on, then something has clearly gone wrong. Despite the government’s line, this legislation does not advance Labour values. It is fundamentally at odds with them, and with the views of the mainstream of the party and civil society.

MPs from across the House, and especially the Labour side, must back Rachael Maskell’s reasoned amendment. This bill’s creation of a three-tiered social security system would condemn thousands to poverty and could lose Labour the next election.

A bill of this magnitude should have been co-produced with disabled people and our organisations from the very start.

Now, ministers scramble to promise ‘consultation’ as one small part of the process. That is too little, too late. Co-production is not a rushed tick-box exercise tagged onto legislation already steaming through Parliament. It means disabled people shaping the system at every step – not just commenting on the detail of changes already baked in.

Continue reading...

DWP says 150,000 more people pushed into poverty by benefit cuts, not 250,000 as forecast said before U-turn – UK politics live

Analysis says, allowing for concessions to welfare bill announced last week, cuts will still push people into relative poverty

The Department for Work and Pensions has just published an analysis saying that, allowing for the concesssions announced last week, the welfare cuts will still push an extra 150,000 people into relative poverty.

Here is the key chart from the document.

Continue reading...

Starmer’s disability benefit concessions are not enough, says rebel Labour whip

Exclusive: Vicky Foxcroft, who resigned as whip over welfare bill, urges ministers to work with affected people on changes

The Labour whip who resigned in protest against disability benefit cuts has said Keir Starmer’s concessions do not yet go far enough to win her over, as No 10 launched a fresh attempt to stem the revolt against its welfare bill.

Vicky Foxcroft, who quit her frontbench role over the welfare bill a little more than a week ago, urged the government to work jointly on the changes with disabled people and to publish the review of the system before bringing in cuts.

Continue reading...

Extra cost of being disabled in UK to rise by almost 12% in five years, says Scope report

Estimate by disability charity published on eve of MPs’ vote on restricting welfare payments for new claimants

The extra cost of being disabled is on course to rise by almost 12% to £14,688 in five years, according to a new estimate published on the eve of a controversial vote to restrict welfare payments for new claimants.

A threatened rebellion by more than 120 Labour MPs forced the government into a last-minute climbdown on its welfare bill, by exempting claimants to planned cuts in personal independence payments (Pip), England’s main disability payment.

Continue reading...

Starmer says welfare concessions are ‘common sense’ but dodges funding question – UK politics live

No 10 has offered significant concessions to the rebels, estimated to cost around £3bn a year, amid fears over Tuesday’s vote

Stephen Kinnock, the care minister, was the government voice on the airwaves this morning. Here are the main points he made about the welfare bill U-turn.

Kinnock rejected claims that the U-turn was a sign of weakness. When it was put to him on the Today programme that this move, coming after the U-turns on winter fuel payments and a national inquiry into grooming gangs, showed that if Keir Starmer was pushed, he would give in, Kinnock replied:

I think if you talk to people out there in the country, they respond very positively to politicians listening, engaging, recognising that you don’t get everything right from day one every time, and making the adjustments and the changes that are needed.

And this prime minister will always put the country first. He puts country before party, and he does the right thing for the country.

He defended having a “staggered” approach to changing benefit rules. Asked about the Tory claim that the government was creating a “two-tier benefits system” (see 8.30am), he replied:

Whenever you bring forward change to a complex system, you always have to decide between do you make the change for everybody that’s in that system, in one big move, or do you do it in a more staggered way? What’s clear from the announcement today is that it’s going to be a more staggered process.

He declined to say how much the U-turn would cost. He told Times Radio:

The full details around what we are laying out, what I’ve summarised really today, is going to be laid out in parliament, and then the chancellor will set out the budget in the autumn the whole of the fiscal position and this will be an important part of that.

He said he was now confident that the UC and Pip bill will pass its second reading on Tuesday.

All of the MPs I’ve spoken to who signed the reasoned amendment – MPs from across the party, not just on the left – are sticking to their position because we understand that we are answerable to our constituents.

If the government doesn’t pull the bill, doesn’t consult properly with disabled people and come back to MPs with a serious proposal that protects the dignity of disabled people, I will vote against and I will be far from the only one.

Continue reading...

Starmer confirms willingness to make concessions on welfare bill, saying reforms must be fair – UK politics live

‘We want to see reform implemented with Labour values of fairness,’ the PM says

In his final answer Starmer explained how he thought government and business should work together.

A true partnership is not two people or two bodies trying to do the same thing. It’s two people or bodies realising they bring different things to the table.

Government shouldn’t try to run businesses. It’s done that in the past and it doesn’t work particularly well.

Continue reading...

Widespread Labour dissent over welfare bill is sign things are going very badly for Starmer

Prime minister deployed ministers to contain rebellion after more than 100 Labour MPs signed amendment to bill

When a prime minister is forced to deploy his cabinet to try to contain a rebellion, it is not a sign that things are going well. For one with a working majority of 165 MPs, it suggests that things are, in fact, going very badly.

This was the scenario Keir Starmer faced on Tuesday after more than 100 Labour MPs signed an amendment to his welfare bill which could blow up his attempts to reform the disability benefits system.

Continue reading...

Government officials brace for up to 50 Labour MPs rebelling against welfare bill

Sources say party should have focused on the moral case for reforming the benefits system

Government officials have admitted they made a mistake by making the financial case for cutting benefits as they steel themselves for as many as 50 Labour MPs rebelling against the welfare bill that is being published on Wednesday.

Sources told the Guardian that they now believed the party should have focused on the moral case for reforming the welfare system, arguing that it was letting down millions of people who could be supported into work.

Continue reading...

Carer’s allowance: woman who won case against DWP calls for end to ‘sickening harassment’

Nicola Green, 42, speaks out after significant legal victory against department that accused her of fraud

The mother of a teenager with cerebral palsy has demanded an end to the “sickening harassment” of unpaid carers after a significant legal victory against the government.

Nicola Green, 42, was pursued by the Department for Work and Pensions (DWP) for more than a year after she was accused of fraudulently claiming nearly £3,000 in carer’s allowance.

Continue reading...

‘Labour has made me feel like a scrounger’: disabled people urge welfare cuts rethink

People who rely on personal independence payments tell how cuts will affect them as chancellor rules out U-turn

Ministers are facing a backlash over planned disability welfare changes, but Rachel Reeves on Thursday resisted calls to abandon the cuts.

After ruling out a U-turn, pressure is building on the UK chancellor to tweak qualification rules to protect many disabled people from being stripped of their benefits. On Thursday, she said the government was “reviewing the criteria”, but ministers are yet to release details.

Continue reading...

No 10 won’t say if fuel payments U-turn will be implemented in time for this winter – UK politics live

Downing Street unable to say how many more pensioners would receive winter fuel payments or when changes would come in

YouGov has published more details of its polling on the electorate’s relationship with Labour, as covered in the Sky News report mentioned earlier. (See 10.06am.)

It shows that Reform UK supporters are most likely to think that Labour is trying hard to appeal to them – but least likely to say they would respond positively. Only 4% of Reform UK supporters say they would consider voting Labour, the poll says.

I ask her if there will be any changes as demanded by MPs

She says while “we want to make sure we address all of people’s concerns, but stressed: “whatever the fiscal position that the government faces, I think the system as a whole needs to change.”

Continue reading...

No 10 won’t say if fuel payments U-turn will be implemented in time for this winter – UK politics live

Downing Street unable to say how many more pensioners would receive winter fuel payments or when changes would come in

YouGov has published more details of its polling on the electorate’s relationship with Labour, as covered in the Sky News report mentioned earlier. (See 10.06am.)

It shows that Reform UK supporters are most likely to think that Labour is trying hard to appeal to them – but least likely to say they would respond positively. Only 4% of Reform UK supporters say they would consider voting Labour, the poll says.

I ask her if there will be any changes as demanded by MPs

She says while “we want to make sure we address all of people’s concerns, but stressed: “whatever the fiscal position that the government faces, I think the system as a whole needs to change.”

Continue reading...

Deaths prompt MPs to call for better support for vulnerable benefit claimants

Commons committee recommends independent scrutiny of failures and legal duty to safeguard those at most risk

A cross-party committee of MPs has called for greater protections for vulnerable benefit claimants after hundreds of cases of deaths and serious harms linked to safeguarding failures by welfare officials.

The work and pensions select committee said many of these cases, which include instances where claimants took their own lives, could have been prevented had the Department for Work and Pensions (DWP) discharged its responsibilities effectively.

Continue reading...

Liz Kendall to overhaul DWP’s assessment for disability benefits

Work and pensions secretary calls for groups to engage as she scraps capability assessment and overhauls Pip application

Liz Kendall is to begin an overhaul of the disability benefit assessment process long decried by campaigners as cruel, calling on groups to engage with the changes amid criticism of the government’s forthcoming welfare cuts.

The work and pensions secretary said on Monday she was beginning the process of abolishing the work capability assessment and overhauling the process to apply for the personal independence payment (Pip) – which can be paid to those in or out of work – to form a single assessment process.

Continue reading...

Starmer claims voters being ‘conned’ by Tories and Reform UK as parties are planning a coalition – as it happened

PM says supporters of both groups are being misled and a tie-up would be a ‘disaster’ for Britain. This live blog is closed

Downing Street has described the alleged comments by the band Kneecap in the ‘kill MP’ footage (see 12.10pm) as “completely unacceptable”.

At the morning lobby briefing, the PM’s spokesperson described the comments as “completely unacceptable”.

We do not think individuals expressing those views should be receiving government funding.

That’s up to the group, but clearly the PM rejects the views expressed … does not shy away from condemning them.

I don’t want to see strike action, I don’t think anybody wants to see strike action.

And certainly here we are in a healthcare environment with all the staff working really hard. The last thing they want to do is to go into dispute again.

Continue reading...

Scope plans major job cuts, hitting disabled employees hardest

Charity set to reduce its workforce by more than a fifth this year amid mounting financial pressures

Scope expects to cut more than a fifth of its staff this year amid mounting financial pressures, with about a third of those affected to be disabled employees.

The disability charity announced a consultation last week over plans to place 124 of its 326 corporate roles at risk of redundancy, a move likely to result in about 70 job losses in the summer.

Continue reading...

Wales and north of England face disability cuts ‘double whammy’

Policy in Practice analysis shows twice as many people affected in north-east, north-west and Wales than in London and south-east

A £5bn programme of disability benefits cuts planned by the UK government will disproportionately hit people living in Wales and northern England “entrenching deprivation”, according to new analysis.

The consultancy Policy in Practice has looked at how the proposed changes would affect individual regions and local authorities, and found the impact across the UK starkly uneven.

Continue reading...