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The government will not follow the advice of the previous Tory administration when it comes to slashing the welfare bill, a minister has said following reports the chancellor is eyeing up £3bn worth of cuts.

Work and pensions minister Alison McGovern said the UK was “paying the price of failure” from the previous government, with around 1.8 million people out of work who say they want a job.

Ahead of the budget, the government is looking to raise up to £40bn through tax hikes and spending cuts, to the alarm of some ministers who are concerned by the scale of the chancellor’s plans.

There have been reports that the Department for Work and Pensions is one target for cuts, with Rachel Reeves seeking to slash around £3bn from the welfare bill over the next four years by restricting access to sickness benefits.

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According to The Daily Telegraph, Ms Reeves hopes to achieve this by following the previous government’s plans to reform work capability rules by tightening eligibility, so that around 400,000 more people who are signed off long-term would be assessed as needing to prepare for employment by 2028/29 – a move that would reduce the benefits bill by an estimated £3bn.

Asked whether those who are not currently in work could expect to see their benefits cut, Ms McGovern said there had “always been rules” in the UK’s social security system, with a “duty on both sides”.

“People who are receiving social security have a duty to comply with those rules and the government has a duty to help people,” she said.

But she appeared to distance herself from the suggestion that Labour would follow the Conservatives’ blueprint, telling Sky News: “Like all departments, the Department for Work and Pensions has to make savings because the financial situation our country is in is not good at all.

“But I don’t think we should follow the advice of a Conservative government that failed over 14 years – so we will bring forward our own proposals.”

Before the election, The Tories pledged to reform the disability benefits system and target it at those most in need by tightening the criteria for work capability assessments.

They also proposed to pass on the responsibility for issuing sick notes from GPs to specialist work and health professionals.

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Rishi Sunak also pledged to take benefits away from people who were fit to work but did not accept job offers after 12 months, and to tighten the work capability assessment so those with less severe conditions would be expected to seek employment.

It is understood the chancellor will commit to the plan to save £3bn over four years, but Liz Kendall, the work and pensions secretary, will decide how the system will be changed in order to achieve this.

The reforms will also include overhauling job centres, delivering a “youth guarantee” to ensure young people are either working or learning, and devolving power to local leaders.

Read more:
The 800,000 people who have fallen into ‘economic inactivity’
Surge in young people claiming disability benefits, research suggests

Ms McGovern said it was the government’s ambition to get 80% of people into work, which would translate to more than two million extra people in the Labour market.

She said this could be achieved in part by reforming job centres, which she called “the most unloved public service”, adding: “The system we have means that people go into a job centre, they see somebody for ten minutes, tick the box and you’re off.

“And that has got to change because we’ve had 14 years of failure when it comes to our economy and getting people into work.”

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Ed Davey reveals he has written to King to explain Trump state dinner boycott

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Ed Davey reveals he has written to King to explain Trump state dinner boycott

Sir Ed Davey has written to King Charles to explain why he believes he has to refuse his invite to a state banquet for Donald Trump.

The Lib Dem leader said on Wednesday he will be boycotting the dinner next month during the US president’s second state visit to the UK because of the situation in Gaza.

He told Sky News on Thursday: “I’ve written to him [the King] personally explaining my thinking.

“And it’s with deep regret that I’ve had to take the decision, but I feel with what is going on in Gaza, it’s the best way I can get my voice heard.”

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Sir Ed said the “sad truth” is Mr Trump is the “one man” who has the power to stop the “horrible famine in Gaza, could get the hostages released, could bring an end to this horrendous humanitarian crisis”.

He said the US president could do that by phoning up Israeli Prime Minister Benjamin Netanyahu and telling him to stop.

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The Lib Dem leader said Mr Trump could also call up the Qatari government and other Gulf states to get them to put pressure on Hamas to release the remaining 50 Israeli hostages (20 living, 30 dead) they took on 7 October 2023.

The King and Donald Trump during his first state visit in 2019. Pic: Reuters
Image:
The King and Donald Trump during his first state visit in 2019. Pic: Reuters

He emphasised that he has “huge respect” for the King and it was a very difficult decision he “really wrestled with” and involved him talking to his wife and praying about it.

Sir Ed denied it was political posturing and instead is one of the only ways he could get Mr Trump to listen.

“I didn’t want him to come to the UK without being reminded, as best I can, that he has that moral responsibility, frankly,” he added.

“And from what I’m picking up from many people, there are people across the political spectrum who agree with me and the Democrats that it is Donald Trump, it is the United States who has this power over Netanyahu, over Hamas, albeit indirectly, to stop this horrendous situation.”

Publicly refusing the King’s invite is “the best way I can get my voice heard,” Sir Ed said.

Read more:
British journalists demand action from PM over war in Gaza
Has Trump ended seven wars as he claims?

King Charles will host a state dinner for Donald Trump. Pic: PA
Image:
King Charles will host a state dinner for Donald Trump. Pic: PA

Tony Blair at White House Gaza meeting

While Sir Ed is choosing to snub Mr Trump to get his voice heard, former Labour prime minister Sir Tony Blair has been asked by the US president for help on Gaza.

Sir Tony joined a White House meeting on Wednesday, chaired by Mr Trump, to discuss the war in Gaza and post-war plans for the Palestinian territory, a senior White House official confirmed.

They were joined by Mr Trump’s former Middle East envoy and son-in-law, Jared Kushner, to also discuss the hostage crisis and plans to escalate food aid deliveries.

The official described it as “simply a policy meeting”.

In July, the Financial Times reported the Tony Blair Institute had participated in a project to develop a post-war Gaza plan, with the think tank having “had many calls with different groups on post-war reconstruction of Gaza but none included the idea of forcible relocation of people from Gaza”.

Sir Ed called on Sir Tony to be quizzed in parliament about his discussions with the Trump administration.

“If he has special insight into Trump’s intentions, it’s only right that parliament and the government are made privy to this,” he said.

“We must leverage all the information and resources at our disposal to make Trump do the right thing.”

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US regulator opens pathway for Americans to trade on offshore crypto exchanges

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US regulator opens pathway for Americans to trade on offshore crypto exchanges

US regulator opens pathway for Americans to trade on offshore crypto exchanges

The change is part of the Commodity Futures Trading Commission’s “crypto sprint,” an initiative to overhaul regulations in response to proposals from the Trump administration.

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US Government taps Chainlink, Pyth to publish economic data onchain

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US Government taps Chainlink, Pyth to publish economic data onchain

US Government taps Chainlink, Pyth to publish economic data onchain

The US government announced on Tuesday that it is publishing economic data onchain to boost transparency for government spending.

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