Labour shifts poll tactics to target fearful Tory over-65s

Alarm grows over possible pension cuts as research suggests Jeremy Hunt tax cut announcement was ‘blunder’

Labour is to wage a new campaign to win over Tory-supporting pensioners in an attempt to neutralise one of the government’s last remaining electoral strengths, amid evidence the Conservatives are now performing as badly among the age group as they did under Liz Truss’s leadership.

With less than a fortnight to go until local elections in England, which some Tories fear could trigger an attempt to topple Rishi Sunak, the Observer understands that Keir Starmer’s top officials are reorienting their campaign after detecting alarm among pensioners over the impact a Conservative tax-cutting pledge could have on pensions and the NHS.

Continue reading...

Labour has 99% chance of forming next government, says elections expert – UK politics live

Prof Sir John Curtice, the psephologist and lead election analyst for the BBC, said the chances of a Tory revival were small

In the House of Lords peers have just started debating the second reading of the leasehold and freehold reform bill. The bill has already passed through the Commons.

Normally, at this stage of the process, the content of a government bill is all but finalised. But, as No 10 admitted on Monday, the government has still not decided how far it will go in terms of cutting ground rents for existing leaseholders.

Continue reading...

Tory MP Robert Halfon quits as minister and James Heappey confirms resignation, paving way for mini reshuffle – as it happened

Robert Halfon quits as skills, apprenticeships and higher education minister as James Heappey confirms decision to step down

In interviews this morning Gillian Keegan, the education secretary, admitted that special educational needs provision was in crisis, Ben Quinn reports.

Universities in England could be told to terminate their arrangements with foreign countries if freedom of speech and academic freedom is undermined, the government’s free speech tsar has said. As PA Media reports, Prof Arif Ahmed, director for freedom of speech and academic freedom at the Office for Students (OfS), said many universities and colleges in England have “international arrangements” – including admitting overseas students on scholarships and hosting institutes partly funded by foreign governments. PA says:

The higher education regulator launched a consultation on guidance about freedom of speech, ahead of universities, colleges and student unions taking on new free speech duties.

The guidance includes examples to illustrate what higher education institutions may have to do to fulfil their new duties – due to come into effect in August – to secure freedom of speech within the law.

University A accepts international students on visiting scholarships funded by the government of country B. Scholars must accept the principles of the ruling party of country B, and direction from country B’s government via consular staff. Depending on the circumstances, these arrangements may undermine free speech and academic freedom at University A. If so, that university is likely to have to terminate or amend the scholarship agreement.

If it means that there are people who are employed by an institute who are preventing legitimate protests or shutting down lecturers from covering certain kinds of content regarding that country for instance, or that country’s foreign policy … If that behaviour amounts to a restriction of freedom of speech within the law, and someone brings a complaint to us, then we may find that the complaint is justified and then we make recommendations …

If there are problems, universities will have to do everything they can to act compatibly with their freedom-of-speech duties. Insofar as that means a rethinking of their relationship with other countries, obviously that’s something that would be a good idea for them to start thinking about now.

Continue reading...

Thousands of UK women owed pension payout after ombudsman’s Waspi ruling

The way women’s state pension age was raised plunged retirement plans into chaos with many now in line for compensation

Thousands of women are owed compensation because of government failings related to the way changes to the state pension age were made, a long-awaited official report has said.

The Parliamentary and Health Service Ombudsman (PHSO) said those affected were owed compensation but added that that Department for Work and Pensions (DWP) had clearly indicated it would “refuse to comply”, which was “unacceptable”.

Continue reading...

UK politics: Sunak refuses to say how abolition of national insurance would be funded – as it happened

PM says ‘people trust me on these things’ and refuses to be drawn on whether government would forgo entire £46bn raised from measure

Keir Starmer has accused Jeremy Hunt of repeating the budget mistakes made by Liz Truss during her disastrous premiership.

In comments on the budget during a visit to a building site this morning, Starmer focused on Hunt’s proposal to abolish employees’ national insurance over time, saying that this was a bigger unfunded tax promise than those in Truss’s mini-budget. (See 9.28am.)

How humiliating was that for the government yesterday?

We’ve argued for years that they should get rid of the non-dom tax status, they’ve resisted that. And now, completely out of ideas, the only decent policy they’ve got is the one that they’ve lifted from us.

Nothing that Jeremy Hunt did yesterday, nor anything the OBR said, changes anything very significantly. Which is a shame. Because that means we are still:

-heading for a parliament in which people will on average be worse off at the end than at the start,

Continue reading...

MoD firefighters’ pensions delayed after Capita Group blunders

Trade union Unite tells of concerns about 2025 contract to administer civil service pension scheme

Retired firefighters who were responsible for tackling blazes on military bases have been unable to access their full pension due to “numerous” blunders by the outsourcing group Capita, it has emerged.

Capita won a £525m contract to run the Ministry of Defence’s fire and rescue service in 2019, renaming it the Defence Fire and Rescue Project (DFRP) after the privatisation.

Continue reading...

Retired teacher’s pension stopped as provider refuses to believe she is not dead

Payments halted four times and left Eileen McGrath without income over Christmas

A retired teacher has had her pension payments stopped four times because her pension provider repeatedly refuses to accept that she is not dead.

Eileen McGrath, 85, was left without income over Christmas when Teachers’ Pensions, which administers payments on behalf of the UK government, wrongly matched her with a deceased stranger.

Continue reading...

Divorces delayed by cost of living crisis, research finds

Financial pressures have led to postponement of 19% of divorces, involving 270,000 couples, Legal & General claims

The start of the new year is often boom time for divorce lawyers, but 2024 may be different as new research shows the cost of living crisis has delayed more than 270,000 couples from splitting.

Financial pressures delayed 19% of divorces, researchers at Legal & General found. The impact has been particularly pronounced since 2020, with income concerns, cost of living pressures and the price of divorce all cited as reasons to postpone the split.

Continue reading...

No bounce for the Tories after tax-cutting budget, poll shows

Opinium poll for the Observer reveals the public is unimpressed with Jeremy Hunt’s attempt to woo them by trimming national insurance

Rishi Sunak has received no poll bounce after cutting taxes in last week’s autumn statement, according to the latest Opinium poll for the Observer.

Following a week in which the chancellor, Jeremy Hunt, described a reduction in national insurance as “the biggest tax cut on work since the 1980s” Labour’s lead has increased to 16 percentage points over the Tories.

Continue reading...

Autumn statement: Jeremy Hunt looks to cut UK taxes and ‘turbo-charge growth’

Amid less gloomy OBR forecasts the chancellor is expected to take first steps towards cutting personal taxes

Jeremy Hunt will announce 110 measures to boost Britain’s stagnant economy and bow to demands from anxious Tory MPs for tax cuts when he delivers his second autumn statement on Wednesday.

In one of the last set-piece economic events before the general election, the chancellor will pledge to “turbo charge” growth while taking the first steps to cut personal taxes after recent sharp increases.

Continue reading...

Huge ethnicity pension gap revealed in UK figures

Shortfalls fuelled by misconceptions and distrust of employers, as well as lack of spare income, figures show

A UK individual from a minority ethnic background typically has a pension pot less than half the size of that belonging to the average white British saver, data reveal.

The research from Legal & General’s investment arm claimed there was a sizeable “ethnicity pensions gap” in the UK that was being fuelled by “misconceptions” around pensions and a “significant distrust of employers”, as well as a lack of spare income.

Continue reading...

Boris Johnson government ‘always hoped’ Northern Ireland protocol would collapse – UK politics live

Lord Frost, Brexit negotiator for former PM, tells House of Lords that government never wanted ‘unsatisfactory’ protocol to work

Rayner says Labour will update trade union laws to make them fit for the 21st century.

The laws affecting union reps and officials do not take into account technological advancements, she says.

First, we will update regulations to outlaw the use of predictive technologies for blacklisting and safeguard against singling out workers for mistreatment or the sack without any evidence of human interaction.

Second, we will act to end the loophole that allows employers to pass the dirty work down to third party contractors, so that any third party found to be carrying out blacklisting can legally be held to account.

The Tories pushed through the 2016 Trade Union Act, preventing fair bargaining and holding back living standards.

And this year they gave us the minimum service levels bill [the Strikes Act] …

Continue reading...

Sunak refuses to make pensions triple lock election commitment

PM says he will not speculate over policy as he grapples with how to fund tax cuts demanded by Tory MPs

Rishi Sunak has refused to commit to keeping the pensions triple lock in the next Conservative manifesto, as he grapples with how to fund tax cuts demanded by his own MPs.

The prime minister told reporters during the G20 summit in Delhi that the triple lock – which guarantees that pensions will rise by at least 2.5%, and by either inflation or earnings if they are higher – remains government policy.

Continue reading...

UK’s LGBTQ+ community ‘more likely’ to face real hardship in retirement

Data shows 44% at risk of struggling to afford food and heating after leaving workplace

Close to half of individuals who identify as LGBTQ+ are heading for a retirement where they are at risk of struggling to afford such basics as food and heating, according to new UK data.

Looking across various measures including amounts saved and pension scheme membership, researchers concluded that members of the LGBTQ+ community were “far more likely than the general population” to struggle in retirement.

Continue reading...

Ministers reportedly scrap plan to bring forward rise in UK state pension age

Falling life expectancy and fears of voter unhappiness thought to be behind rethink about increase to 68 late next decade

Ministers have reportedly delayed plans to bring forward a rise in the state pension age amid falling life expectancy in the UK.

The state pension age, which is currently 66, was due to rise to 68 after 2044 but reports earlier this year suggested ministers had planned to bring the increase forward to between 2037 and 2039.

Continue reading...

NHS workers expected to be offered one-off payments worth up to 6% as part of revised pay offer – UK politics live

Health secretary expected to announce a formal pay offer to key unions later today

Sinn Féin’s US fundraising arm has caused a row by calling for a referendum on Irish unity in adverts in the New York Times, Washington Post and other US publications.

The half-page ads were paid for by Friends of Sinn Féin and ran on Wednesday urging support for unity referendums in Northern Ireland and the Republic of Ireland. “It is time to agree on a date,” it said. “Let the people have their say.”

They’re ads from Irish American organisations whose view on reunification is well known and held for a very long time and they take out ads every year. So, the focus now needs to be on getting back to work [at Stormont].

Continue reading...

Jeremy Hunt defends pensions giveaway as Labour vows to scrap it

Shadow chancellor says decision to axe lifetime allowance is ‘wrong priority at the wrong time for the wrong people’

The Labour party has vowed to reverse the chancellor’s £1bn budget pensions tax “gilded giveaway” for the wealthiest 1% if it wins the next general election, as Jeremy Hunt defended his decision to scrap the lifetime pensions allowance.

The shadow chancellor, Rachel Reeves, said Labour would seek to force a Commons vote next week on the decision, which critics argue will allow the wealthiest people to put a limitless amount into their pension pots, which can then be passed on to their heirs without paying inheritance tax.

Continue reading...

Jeremy Hunt is helping rich instead of helping people into work, says thinktank

IFS says budget pensions giveaway could open up loophole for avoidance of inheritance tax

Jeremy Hunt’s huge pensions giveaway for the wealthiest 1% may have no impact on increasing the number of people in work, while opening a loophole for avoidance of inheritance tax, a leading economic thinktank has warned.

The Institute for Fiscal Studies said the surprise measure in the chancellor’s budget “probably won’t play a big part, if any” in increasing the number of people in work.

Continue reading...

Budget pension shake-up is £4bn tax giveaway for wealthy, critics say

Jeremy Hunt criticised for scrapping lifetime allowance and increasing annual contribution cap

The chancellor has been accused of unveiling a £4bn tax giveaway that will benefit the wealthiest people in the UK by dramatically increasing how much they can stash away in pensions while enjoying the full tax benefits.

Jeremy Hunt announced a major shake-up of the rules governing how much people can pay into their retirement pots, which will have no impact on the vast majority of the population but could lead to huge gains for the top few per cent of wealthy, older pension savers. Labour claimed it was a handout for “the richest 1%” and that someone with a £2m pension pot would pay up to £275,000 less in tax as a result.

Continue reading...

Starmer ‘should bring in workplace pension for the self-employed’

Fabian Society also says Labour needs to be radical and introduce better provision for the lowest paid

Sir Keir Starmer should promise that a future Labour government would introduce a new workplace pension for self-employed workers and more generous retirement provision for the low paid, a leading left-of-centre thinktank has said.

Calling for the biggest shake-up of the pensions’ system in two decades, the Fabian Society said Labour needed to copy the radical approach of the Turner Commission two decades ago, which encouraged saving through opt-out schemes.

Increasing the minimum contributions for workplace auto-enrolment pensions to 12% of total earnings from the current 8%. This would be done by phasing in higher contributions from employers over time.

The introduction of new pension credits for carers, who are primarily women, to reduce the “gender pensions gap”

Changes to how people access pensions at retirement so that separate pensions are automatically consolidated into a single fund and then converted into new whole-of-retirement pension plans designed to increase with inflation.

Continue reading...