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Proposals to freeze some dis­ability benefits are reportedly being scrapped after concerns from Labour politicians about the scale of planned welfare cuts.

The work and pensions secretary had been under pressure to cut the benefits bill and was expected to cancel an inflation-linked rise to the personal independence payment (PIP).

But it is reported those plans will be ditched by Liz Kendall, despite the Chancellor Rachel Reeves insisting “we do need to get a grip” on the welfare budget, saying the “current system is not working for anyone”.

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Welfare system ‘letting people down’

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Reforms to the welfare system are expected to be announced this week, ahead of the spring statement on 26 March.

Explainer: Where could welfare cuts be made?

Some MPs fear drastic cuts to support for the most vulnerable, but Ms Kendall may have attempted to partly address concerns from cabinet colleagues and Labour backbenchers about the scale of the reforms.

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Almost four million working-age adults in England and Wales currently claim incapacity or disability benefits, up from 2.8 million before the pandemic.

It is being widely reported that instead of scrapping a rise in PIP, savings could be achieved by changing the eligibility criteria along with cutting the top rate of incapacity benefit.

Ms Kendall told The Sunday Times it was an “absolute principle” to protect welfare payments for people unable to work. “For those who absolutely cannot work, this is not about that,” she said.

She said the number of people on PIP is set to more than double this decade, partly driven by younger people.

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‘Government’s plan to cut welfare is terrifying’

“Increasingly, there is lots of clear evidence that work is good for mental health and physical health too… social security alone for many people will never be the key to a better life. It should be a springboard and not trapping people,” she told the newspaper.

Ms Kendall has revealed plans to give disabled people the right to try employment without the risk of losing their benefits.

The so-called “right to try guarantee” aims to prevent those people who receive health-related benefits from having their entitlements automatically re-assessed if they enter employment.

The Observer said the details are due to be announced as part of a green paper on Tuesday.

Read more from Sky News:
Welfare cuts could trigger backbench fight
Tough choices the chancellor has to make
Harriet Harman: Stop briefing against DWP

Research published in February by the Department for Work and Pensions (DWP) showed the number of 16 to 34 year-olds who are long-term sick with a mental health condition has reached 270,000, increasing by 60,000 (26%) in the last year alone.

Some on benefits ‘taking the mickey’

The figure for all working-age people is 790,000, an increase of 140,000 (22%) over the last year.

Responding at the time to those figures, Ms Kendall said some people on benefits were “taking the mickey”.

“I have no doubt, as there always have been, there are people who shouldn’t be on those benefits who are taking the mickey and that is not good enough – we have to end that,” she told ITV News.

The same survey found 200,000 people receiving health-related or disability benefits were ready to work if the right job or support was available.

Welfare cuts are supported by the Conservatives, albeit the party has accused Labour of “dithering, delay and division” on the issue.

Meanwhile, the SNP argues any planned cuts to disability payments should be “abandoned”, and disability charities have expressed a similar view.

Sky News’ Trevor Phillips will be looking at all the political headlines this week from 8.30am this morning. He will be joined by Health Secretary Wes Streeting, shadow education secretary Laura Trott and former national security adviser Lord Ricketts.

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UK and global economic growth forecasts cut – as Trump tariffs blamed

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UK and global economic growth forecasts cut - as Trump tariffs blamed

Global economic growth has been downgraded by the Organisation for Economic Co-operation and Development (OECD) – as the impact of US President Donald Trump’s tariffs becomes apparent.

Major economies including the UK will have lower rates of GDP – a measure of an economy’s value and everything produced – due to the US’s imposition of taxes on some goods it imports, the Paris-based OECD club of 38 rich countries said.

The UK economy will grow only 1.4% this year, as opposed to the 1.7% previously anticipated.

Next year, the figure will be 1.2%, lower than the 1.3% forecast before Mr Trump took office in January, according to the OECD interim economic outlook.

Money blog: West End performer on what it’s really like

It’s more unwelcome news for Chancellor Rachel Reeves after January GDP unexpectedly shrank. The government has repeatedly said growing the economy is its number one priority.

In response to the OECD figures, Ms Reeves pointed out the UK is forecast to be “Europe’s fastest growing G7 economy over the coming years – second only to the US”.

“This report shows the world is changing, and increased global headwinds such as trade uncertainty are being felt across the board,” said the chancellor.

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Reeves reacts to growth figures

Global GDP will slow, the OECD said, from 3.2% in 2024 to 3.1% in 2025 and 3% in 2026 due to the higher trade barriers caused by the tariffs and the policy uncertainty around their implementation.

US growth has been revised downward to 2.2% in 2025 and 1.6% in 2026. Higher GDP of 2.4% and 3.1% had been expected for this year and next.

While the Eurozone has not escaped the downgrades it is less impacted than first thought, the report said.

“European economies will experience fewer direct economic effects from the tariff measures incorporated in the baseline projections, but heightened geopolitical and policy uncertainty is still likely to restrain growth,” it said.

What’s happening with tariffs?

After some false starts, where levies were announced and paused last minute or not brought into effect at all, tariffs are now in effect on some goods coming from China.

A 25% tariff on all steel and aluminium imports to the US came into effect earlier this month.

Tariffs on Canada and Mexico were suspended until 2 April.

The full effect of tariffs has also yet to be felt as EU retaliatory taxes on US goods are yet to take effect.

In response, Mr Trump said he would impose a 200% tariff on EU alcohol – including wine and champagne.

Read more:
What are Donald Trump’s tariffs – and how will they affect the UK?

Consumers to be hit

It’s consumers who will pay the price for the additional taxes, the OECD said.

“Consumers face much of the burden of higher tariffs,” it said, as it warned of a “significant” impact on living standards.

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Thames Water avoids being taken into government ownership in coming days after unsuccessful court challenge

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Thames Water avoids being taken into government ownership in coming days after unsuccessful court challenge

Thames Water has staved off effective government ownership after an unsuccessful legal challenge to its financial restructuring.

The Court of Appeal has ruled in favour of a £3bn loan intended to temporarily sort out its finances while the company raises more private investment, dismissing an appeal.

The decision backs the High Court judgment of last month and means the UK’s biggest water supplier is unlikely to be taken into special administration – a form of government control – in the coming days.

Without the loan, Thames Water said it would run out of money on 24 March.

The appeal was launched by Lib Dem MP Charlie Maynard and a small group of Thames Water creditors.

Those creditors had objected to the loan as they faced being wiped out completely in the financial restructuring.

The company is now struggling under a £19bn debt pile. It was unable to secure more investment from existing shareholders over the high fines it faced from regulator Ofwat for rule breaches.

More on Thames Water

Monday’s decision was met with dismay from campaigners and welcomed by Thames Water.

“As a vital public utility serving a quarter of the population, the Environment Secretary should be charting a course to safer waters by putting Thames into special administration and public ownership,” said Matthew Topham the lead campaigner for We Own It, which campaigns for public ownership of public services.

“Instead, Steve Reed has just flushed nearly £1bn of households’ cash down the drain in the form of interest payments and professional fees by supporting this terrible deal to go ahead.”

Thames Water chief executive Chris Weston said “We remain focused on putting Thames Water onto a more stable financial foundation as we seek a long-term solution to our financial resilience.”

“Today’s news demonstrates further progress.”

The first half of the £3bn will come through in “the coming months”, he added.

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‘A starting salary? There’s no such thing’: What it’s really like being a West End performer

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'A starting salary? There's no such thing': What it's really like being a West End performer

Each Monday, our Money team speaks to someone from a different profession to discover what it’s really like. This week, we chat to Aaron Archer from Joseph And The Amazing Technicolor Dreamcoat and Mamma Mia! about life as a West End performer…

There’s no such thing as a starting salary in the performing arts… A job may be an equity contract with a union that sets out minimum salaries depending on the size of the theatre or the amount of work and many other varying factors. Or it could be a privately/commercially financed job, meaning the salary can vary hugely. All equity minimum figures can be found online but it can range between £600-900 roughly a week for an ensemble member in a West End show. Again, this figure can vary below or above this. The principals will earn a higher salary as well as people who cover other roles or have extra responsibilities such as being the dance captain.

You don’t necessarily have a stable income to rely on… Contracts can differ in length from just a few days to a year or more.

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Many performers have another job on the side… to supplement their income, as sometimes you can’t solely rely on the earnings from performing.

People might look down at a cruise ship contract… but these performers are extremely talented and earning money doing the job they love just the same as somebody in a show in the West End, with the cruise ship job paying more than a West End contract sometimes.

A usual week consists of eight shows… but over busy periods extra shows can be added. With most shows being around two and half hours, as well as any additional rehearsals, we are working between 35-40 hours a week with one day off.

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It’s very hard to plan ahead... You never know what you’re going to be doing or where you are going to be from one year to the next. I went from working on a cruise as a dancer travelling the world, to then the next year making my West End debut in Mamma Mia.

Theatres on London's West End
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Theatres on London’s West End

The most important skill to do this job well is… to just be a nice person. Obviously your talent and hard work and dedication will be a huge factor in getting jobs but if you are a nice, friendly person then that will make you 10x more employable.

My favourite part of my job is… knowing that six-year-old me would have never imagined I’d be doing this as my career and getting to meet so many amazing people.

You meet amazing people at the stage door… who want to meet the cast members and sometimes get a picture or signature after the show. But stage door isn’t compulsory and sometimes you do just want to get home to rest and you can be made to feel guilty if people are unhappy that they didn’t get the chance to see you afterwards.

Read more from this series:
What it’s really like to be a… bodyguard
What it’s really like to be a… zookeeper
What it’s really like to be a… driving instructor

My mind has gone blank for split seconds… and there have been multiple occasions where in a scene carrying bagpipes the pipes have fallen off or broken on stage. I’ve just had to carry on while holding a snapped pipe in my hand, somehow managing to keep a straight face.

Rejection is a regular thing to deal with… It’s normal to get emotionally attached to opportunities that you have put so much time and effort into, after rounds and rounds of auditions for a job and waiting weeks to hear if you’ve booked the job or not. It is emotionally draining.

For one role I had to fake tan twice a week… and another I had to wear a wetsuit and flippers on stage while dancing.

Dealing with burnout from a very physically and mentally demanding schedule… can make it harder to have other commitments outside of work and seeing friends and family.

Theatre is good value for money when you look at… how much work goes into what the audience members are seeing on the stage. The sheer volume of people that it takes to put on a show, from the production team to the backstage team, cast, creatives, wardrobe, wigs, makeup, sound, theatre front of house staff and many other teams of people that make it possible. I do think that some ticket prices for some shows have become not as easily accessible, but apps like TodayTiks are great for finding affordable tickets for various shows.

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