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Labour faces a major challenge from its own backbenchers ahead of an announcement to restrict some sickness and disability benefits.

The plans are likely to be opposed by those in the party who are concerned about attempts to slash the ballooning welfare bill and encourage adults back to work.

Work and Pensions Secretary Liz Kendall is expected to set out the reforms on Tuesday, but details of where those cuts could fall is proving highly divisive within Labour.

Total welfare spending in 2023-23 was about £296bn, by the end of the decade it is forecast to reach almost £378bn.

Explainer: Where could welfare cuts be made?

The chancellor needs to find savings to meet her strict fiscal rules and Rachel Reeves has previously insisted “we do need to get a grip” on the welfare budget.

One proposal reportedly under consideration is to save around £5bn by freezing or tightening the rules around the personal independence payment (PIP).

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But Labour’s Mayor of Greater Manchester Andy Burnham, a former Labour health secretary, has “urged great caution on how changes are made” although, writing in The Times, he accepts “the benefits system needs a radical overhaul”.

“I would share concerns about changing support and eligibility to benefits while leaving the current top-down system broadly in place. It would trap too many people in poverty,” he added.

Health Secretary Wes Streeting argued on Sunday Morning With Trevor Phillips that the current system is “unsustainable” and welfare reforms are needed. He also said mental health conditions are often overdiagnosed.

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‘1,000 people every day signing on to PIP benefits’

PIP is a payment of up to £9,000 a year for people with long-term physical and mental health conditions.

Campaigner Steve Morris is one of those 3.6 million PIP claimants and says freezing it at the current level would make his life much harder.

SN screengrab of campaigner Steve Morris - also deafblind - and a PIP claimant who's worried about reform to the benefit
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Steve Morris claims PIP and is worried about what reforming the benefit could mean for him

“I’m deafblind. PIP makes a huge difference to my life. It enables me to, afford some of the additional costs that are associated with my disability.

“For so many disabled people benefits are a lifeline. So to hear that lifeline might be taken away or severely restricted is hugely concerning.”

Liz 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.

But 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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Sky’s political correspondent Liz Bates said the government had been expected to announce a detailed plan over welfare spending last week.

“This particular issue of PIPs stopped that plan being announced because of the strength of backlash… from the backbenches all the way up to cabinet level.”

She added that talks were going on behind the scenes about whether the policy could be softened in some way, although it was unlikely reforms could be avoided completely ahead of the spring statement on 26 March.

“Could there be a bit of backtracking from Number 10 and from the department? This is what we’re going to find out on Tuesday. There is, of course, a lot of pressure coming from the chancellor.”

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Welfare system ‘letting people down’

Labour is also aiming to tackle economic inactivity – especially among those under 35 – with an increasing proportion out of work due to long-term sickness.

A recent PwC report warns “a significant proportion of working adults are close to becoming economically inactive” and ill-health “is a major driver”.

The poll of 4,000 people shows 10% of the workforce are currently actively considering leaving work, and not just their current role.

That rises to 37% of those aged 18-24, who say they have either seriously considered leaving work in the last year, or are actively considering doing so now.

While the factors are complex and vary by age, the report reflects mental health is a major concern with 42% of 18-24 year-olds citing it as the biggest reason to leave work.

File photo dated 21/11/06 of a patient in a wheelchair
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Backbench Labour MPs are concerned welfare reforms will harm vulnerable people claiming benefits. File pic: PA

On Sunday, Ms Kendall teased one policy announcement to attract people back to work, effectively giving 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 Conservatives support welfare reform but claim Labour is “divided” over the issue and “cannot deliver the decisive change we need”.

Shadow work and pensions secretary Helen Whately said: “The government’s dithering and delay is costing taxpayers millions every day and failing the people who rely on the welfare system.”

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US Supreme Court will not review IRS case involving Coinbase user data

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US Supreme Court will not review IRS case involving Coinbase user data

US Supreme Court will not review IRS case involving Coinbase user data

A lower court ruling will stand in a case involving a Coinbase user who filed a lawsuit against the IRS after the crypto exchange turned over transaction data.

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First US staking ETF to launch Wednesday, giving investors exposure to Solana

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First US staking ETF to launch Wednesday, giving investors exposure to Solana

First US staking ETF to launch Wednesday, giving investors exposure to Solana

REX Shares will launch the first US staked crypto ETF this week, giving investors direct exposure to SOL with staking rewards.

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Government accused of ‘stark’ contradiction over position on Gaza genocide allegations

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Government accused of 'stark' contradiction over position on Gaza genocide allegations

The government has won a long-running legal challenge about its decision to continue allowing the sale of spare parts for F-35 fighter jets to Israel, while suspending other arms licences over concerns about international humanitarian law in Gaza.

But a key part of its case has highlighted mixed messaging about its position on the risk of genocide in Gaza – and intensified calls for ministers to publish their own assessment on the issue.

PM braced for pivotal vote – politics latest

Lawyers acting for the government told judges “the evidence available does not support a finding of genocide” and “the government assessment was that…there was no serious risk of genocide occurring”.

Therefore, they argued, continuing to supply the F-35 components did not put the UK at risk of breaching the Genocide Convention.

This assessment has never been published or justified by ministers in parliament, despite numerous questions on the issue.

Some MPs argue its very existence contrasts with the position repeatedly expressed by ministers in parliament – that the UK is unable to give a view on allegations of genocide in Gaza, because the question is one for the international courts.

For example, just last week Deputy Prime Minister Angela Rayner told PMQs “it is a long-standing principle that genocide is determined by competent international courts and not by governments”.

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Situation in Gaza ‘utterly intolerable’

‘The UK cannot sit on our hands’

Green MP Ellie Chowns said: “The government insists only an international court can judge whether genocide is occurring in Gaza, yet have somehow also concluded there is ‘no serious risk of genocide’ in Gaza – and despite my urging, refuse to publish the risk assessments which lead to this decision.

“Full transparency on these risk assessments should not be optional; it is essential for holding the government to account and stopping further atrocity.

“While Labour tie themselves in knots contradicting each other, families are starving, hospitals lie in ruins, and children are dying.

“The UK cannot sit on our hands waiting for an international court verdict when our legal duty under the Genocide Convention compels us to prevent genocide from occurring, not merely seek justice after the fact.”

‘Why are these assessments being made?’

“This contradiction at the heart of the government’s position is stark,” said Zarah Sultana MP, an outspoken critic of Labour’s approach to the conflict in Gaza, who now sits as an independent after losing the party whip last summer.

“Ministers say it’s not for them to determine genocide, that only international courts can do so. Yet internal ‘genocide assessments’ have clearly been made and used to justify continuing arms exports to Israel.

“If they have no view, why are these assessments being made? And if they do, why refuse to share them with parliament? This Labour government, in opposition, demanded the Tories publish their assessments. Now in office, they’ve refused to do the same.”

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Routes for Palestinians ‘restricted’

Judges at the High Court ultimately ruled the case was over such a “sensitive and political issue” it should be a matter for the government, “which is democratically accountable to parliament and ultimately to the electorate, not the court”.

Dearbhla Minogue, a senior lawyer at the Global Legal Action Network, and a solicitor for Al-Haq, the Palestinian human rights group which brought the case, said: “This should not be interpreted as an endorsement of the government, but rather a restrained approach to the separation of powers.

“The government’s disgraceful assessment that there is no risk of genocide has therefore evaded scrutiny in the courts, and as far as we know it still stands.”

Palestinians inspect the damage at an UNRWA school sheltering displaced people that was hit in an Israeli air strike, in Gaza.
Pic Reuters
A Palestinian woman sits amid the damage at an UNRWA school sheltering displaced people. Pic: Reuters
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Pics: Reuters

What is the government’s position?

Government lawyers argued the decision not to ban the export of F-35 parts was due to advice from Defence Secretary John Healey, who said a suspension would impact the whole F-35 programme and have a “profound impact on international peace and security”.

The UK supplies F-35 component parts as a member of an international defence programme which produces and maintains the fighter jets. As a customer of that programme, Israel can order from the pool of spare parts.

Labour MP Richard Burgon said the ruling puts the government under pressure to clarify its position.

“This court ruling is very clear: only the government and parliament can decide if F-35 fighter jet parts – that can end up in Israel – should be sold,” he said.

“So the government can no longer pass the buck: it can stop these exports, or it can be complicit in Israel’s genocide in Gaza.

“On many issues they say it’s not for the government to decide, but it’s one for the international courts. This washing of hands will no longer work.”

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Dozens dead in Gaza after Israeli strikes

Israel has consistently rejected any allegations of genocide.

Prime Minister Benjamin Netanyahu branded a recent UN report on the issue biased and antisemitic.

“Instead of focusing on the crimes against humanity and war crimes committed by the Hamas terrorist organisation… the United Nations once again chooses to attack the state of Israel with false accusations,” he said in a statement.

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‘Gaza disinformation campaign is deliberate’

The UK government has not responded to requests for comment over its contrasting messaging to parliament and the courts over allegations of genocide.

But in response to the judgement, a spokesperson said: “The court has upheld this government’s thorough and lawful decision-making on this matter.

“This shows that the UK operates one of the most robust export control regimes in the world. We will continue to keep our defence export licensing under careful and continual review.

“On day one of this Government, the foreign secretary ordered a review into Israel’s compliance with international humanitarian law (IHL).

“The review concluded that there was a clear risk that UK exports for the IDF (Israel Defence Forces) in the Gaza conflict might be used to commit or facilitate serious violations of IHL.

“In contrast to the last government, we took decisive action, stopping exports to the Israeli Defence Forces that might be used to commit or facilitate serious violations of international humanitarian law in Gaza.”

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