Chancellor toughens rules on benefits as he announces Civil Service freeze
Chancellor Jeremy Hunt has reiterated the government’s commitments to make benefits sanctions harsher – while also committing to raising the national living wage above £11 an hour.
In his speech to the Conservative Party conference in Manchester, the senior minister also revealed a plan to save £1bn by freezing the expansion of the Civil Service and reducing the level of staffing to pre-pandemic levels.
Mr Hunt‘s intervention comes around six weeks ahead of his autumn financial statement.
While not as tumultuous as his predecessor’s party conference speech last year – where Kwasi Kwarteng had to admit his party was U-turning on a key part of his mini-budget – Mr Hunt is still under pressure.
Tory conference live: Party chair makes admission about next election
Many voices within the Conservative Party want him to cut taxes, including cabinet ministers.
Speaking to Sky News’ Sunday Morning with Trevor Phillips, Levelling Up Secretary Michael Gove said he would “like to see the tax burden reduced by the next election”.
Mr Hunt on Saturday said the government was “not in a position to talk about tax cuts at all” – but all bets are off when it comes to party conferences.
The government has been eyeing welfare changes as a way to cut down on spending, and also encouraging people back into work in a bid to grow the economy.
The chancellor will address conference today
Mr Hunt told the party membership in Manchester: “Since the pandemic, things have been going in the wrong direction. Whilst companies struggle to find workers, around 100,000 people are leaving the labour force every year for a life on benefits.
“As part of that, we will look at the way the sanctions regime works. It is a fundamental matter of fairness. Those who won’t even look for work do not deserve the same benefits as people trying hard to do the right thing.”
Read more:
Gove calls for tax cuts ahead of next election
Sunak and Johnson overseen largest tax rises since WW2
Please use Chrome browser for a more accessible video player
Government divided over tax
The chancellor also announced that Work and Pensions Secretary Mel Stride would look again at the benefit sanctions regime to make it harder for people to claim benefits while refusing to take active steps to move into work.
And a spokesman confirmed the proposals would be set out in the upcoming autumn statement.
Speaking last month, Mr Stride said that he was consulting on changes to the Work Capability Assessment, the test aimed at establishing how much a disability or illness limits someone’s ability to work.
Please use Chrome browser for a more accessible video player
Tories tight-lipped on tax cut prospects
Mr Hunt also confirmed a new policy that could seek people looking for new jobs, with a freeze on the number of civil servants.
“We have the best civil servants in the world – and they saved many lives in the pandemic by working night and day,” said the chancellor. “But even after that pandemic is over, we still have 66,000 more civil servants than before.
“New policies should not always mean new people. So today I’m freezing the expansion of the civil service and putting in place a plan to reduce its numbers to pre-pandemic levels. This will save £1bn next year.
“And I won’t lift the freeze until we have a proper plan not just for the civil service but for all public sector productivity improvements.”
But the move was criticised by the Public and Commercial Services union general secretary, Mark Serwotka, who said: “Thirty seconds after praising civil servants for their work during the pandemic, Jeremy Hunt announced a freeze on recruitment.
“Shrinking an already-overstretched and under-resourced civil service will inevitably result in cuts to vital services that people depend on.”
He added: “As usual, a Conservative government is seeking to blame working people for the incompetence of their own ministers.”
Raising the living wage
On the national living wage, Mr Hunt said the government was going to accept the Low Pay Commission’s recommendation to raise the baseline to at least £11 an hour from April 2024.
Resisting sizeable pay increases in the public sector has been part of the government’s strategy to keep spending and inflation under control.
Mr Hunt said: “Since we introduced the national living wage, nearly two million people have been lifted from absolute poverty. That’s the Conservative way of improving the lives of working people. Boosting pay, cutting tax.”
Click to subscribe to Politics at Jack and Sam’s wherever you get your podcast
Ahead of the speech, Prime Minister Rishi Sunak, said: “I’ve always made it clear that hard work should pay, and today we’re providing a well-earned pay rise to millions of people across the country.
“This means a full-time worker will receive an increase of over £1,000 to their annual earnings, putting more money in the pockets of the lowest paid.
“We’re sending a clear message to hard-working taxpayers across the country; our Conservative government is on your side”.
Labour’s shadow work and pensions secretary, Liz Kendall, said her party “believes in responsibility – that those who can work, should look for work and take jobs when they are offered”.
But she said the government also had “a responsibility to create real opportunities and not write people off”, adding: “This is something the Tories have utterly failed to deliver.
“We now have record numbers of people out of work due to long-term sickness, which is costing taxpayers an extra £15bn a year just since the pandemic.
“[Labour] will tackle the root causes of economic inactivity by driving down NHS waiting lists, reforming social security, making work pay, and supporting people into good jobs across every part of the country. Real opportunities matched by the responsibility to take them up – because that’s what fairness is all about.”
The US Securities and Exchange Commission’s Crypto Task Force has scheduled a roundtable discussion centered on privacy and financial surveillance for December, as a renewed focus on privacy grips the cryptocurrency industry.
The privacy roundtable is slated for Dec. 15. Like other SEC roundtables, crypto industry executives and SEC officials will discuss common pain points and solutions, but no hard policy proposals will be submitted.
Privacy has become a hot-button topic following several developments, including the partial guilty verdict in Tornado Cash developer Roman Storm’s trial in June, the Samourai Wallet developer sentencing in November and the privacy token price rally over the last two months.
“Authoritarians thrive when people have no privacy. When those in charge start being hostile to privacy protections, it is a major red flag,” said Naomi Brockwell, founder of the Ludlow Institute, an organization advocating for liberty through technology.
The renewed interest in privacy hearkens back to crypto’s cypherpunk roots, and one of the core reasons the cryptographic technology that underpins crypto was invented — to ensure secure communication channels between parties in hostile environments.
Related: Crypto investors flee visibility for anonymity as privacy coins surge 80%
Crypto community sounds the alarm about privacy following precedent-setting legal cases
The verdict in the Storm trial and other cases where open-source software developers have been convicted or imprisoned for creating non-custodial, privacy-preserving protocols has set a dangerous precedent for privacy technology in the US, legal experts have said.
Crypto industry executives and advocates argue that the prosecutions are meant to dissuade developers from building privacy-preserving tools.
The verdict in the Samourai Wallet case is analogous to the US government accusing car manufacturer Toyota of a conspiracy because terrorists and criminals also use their cars, according to journalist and crypto advocate Lola Leetz.
“People should not be held accountable for what other people do with the tools they build,” Leetz said.
In August, Matthew Galeotti, the acting assistant attorney general for the Department of Justice’s criminal division, signaled the agency would no longer prosecute open-source software developers for writing code.
“Our view is that merely writing code, without ill intent, is not a crime,” Galeotti said. “The department will not use indictments as a law-making tool. The department should not leave innovators guessing as to what could lead to criminal prosecution.”
Magazine: 2026 is the year of pragmatic privacy in crypto: Canton, Zcash, and more
Politics
All four UK governments ‘failed to appreciate’ scale of COVID pandemic threat – inquiry finds
All four UK governments failed to appreciate the scale of the threat posed by COVID-19 or the urgency of the response the pandemic required, a damning report published on Thursday has claimed.
Baroness Heather Hallett, the chair of the inquiry, described the response to the pandemic as “too little, too late”.
Tens of thousands of lives could have been saved during the first wave of COVID-19 had a mandatory lockdown been introduced a week earlier, the inquiry also found.
Noting how a “lack of urgency” made a mandatory lockdown “inevitable”, the report references modelling data to claim there could have been 23,000 fewer deaths during the first wave in England had it been introduced a week earlier.
The UK government first introduced advisory restrictions on 16 March 2020, including self-isolation, household quarantine and social distancing.
Had these measures been introduced sooner, the report states, the mandatory lockdown which followed from 23 March might not have been necessary at all.
Please use Chrome browser for a more accessible video player
All four UK govts ‘failed to appreciate’ scale of pandemic
COVID-19 first emerged in the Chinese city of Wuhan at the end of 2019, and as it developed into a worldwide pandemic, the UK went in and out of unprecedented lockdown measures for two years starting from March 2020.
Lady Hallett admitted in her summary that politicians in the government and devolved administrations were forced to make decisions where “there was often no right answer or good outcome”.
“Nonetheless,” she said, “I can summarise my findings of the response as ‘too little, too late'”.
‘Toxic culture’ at the heart of UK government
The report said there was “a toxic and chaotic culture” at the heart of the UK government during the pandemic.
The inquiry heard evidence about the “destabilising behaviour of a number of individuals” – including former No 10 adviser Dominic Cummings.
It said that by failing to tackle this chaotic culture – “and, at times, actively encouraging it” – former PM Boris Johnson “reinforced a culture in which the loudest voices prevailed and the views of other colleagues, particularly women, often went ignored, to the detriment of good decision-making”.
‘Misleading assurances’
The inquiry found all four governments in England, Scotland, Wales and Northern Ireland failed to understand the urgency of response the pandemic demanded in the early part of 2020.
The report reads: “This was compounded, in part, by misleading assurances from the Department of Health and Social Care and the widely held view that the UK was well prepared for a pandemic.”
The report notes how the UK government took a “high risk” when it significantly eased restrictions in England in July 2020 – “despite scientific advisers’ concerns about the public health risks of doing so”.
Lady Hallett has made 19 key recommendations which, if followed, she believes will better protect the UK in any future pandemic and improve decision-making in a crisis.
Repeated failings ‘inexcusable’
In a statement following the publication of Thursday’s report, Lady Hallett said there was a “serious failure” by all four governments to appreciate the level of “risk and calamity” facing the UK.
She said: “The tempo of the response should have been increased. It was not. February 2020 was a lost month.”
Read more:
A timeline of the UK’s response to the pandemic
Lady Hallett said the inquiry does not advocate for national lockdowns, which she said should have been avoided if at all possible.
She said: “But to avoid them, governments must take timely and decisive action to control a spreading virus. The four governments of the UK did not.”
Lady Hallett said none of the governments were adequately prepared for the challenges and risks that a lockdown presented, and that many of the same failings were repeated later in 2020, which she said was “inexcusable”.
She added: “Each government had ample warning that the prevalence of the virus was increasing and would continue to do so into the winter months. Yet again, there was a failure to take timely and effective action.”
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024