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The welfare state will be there for those who need it “now and for years to come”, the work and pensions secretary has said – as the government faces pressure from its own MPs over benefit changes.

Liz Kendall acknowledged there has been “lots of speculation” about the government’s plans to reform welfare, which are due to be announced on Tuesday following a delay because of concerns from Labour backbenchers.

Politics latest: Welfare reforms ‘imminent’

Speaking in the House of Commons, Ms Kendall said she wanted to assure the public the announcements will “ensure there is trust and fairness in the social security system” – and that it will remain in place for those who need it.

Earlier on Monday, Sky News revealed the government has chosen not to freeze the personal independence payment (PIP) next year following pressure from Labour MPs over the past week.

Ministers had wanted to stop PIP (a payment of up to £9,000 a year for people with long-term physical and mental health conditions, and disabilities) rising with inflation as part of a drive to cut the welfare budget.

The proposal had been set to save about £5bn, as Chancellor Rachel Reeves searches for savings.

She has lost £9.9bn of fiscal headroom (the amount she could increase spending or cut taxes without breaking her fiscal rules) since the October budget due to a poor economy and geopolitical events.

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Which benefits could be cut?

Why Labour MPs are so uncomfortable

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Will there be a backlash over benefits?

What’s the government’s case?

The government is expected to make qualifying for PIP more difficult when Ms Kendall reveals her plans on Tuesday.

Sky News’ deputy political editor Sam Coates, on the Politics At Sam And Anne’s podcast, said the Treasury is also expected to abolish the Work Capability Assessment, which determines whether someone is fit or not to work and to then receive disability payments.

The government has described the system as “dysfunctional”, as those “not fit for work” do not receive employment support or further engagement after the assessment, which could lock them out of future work altogether.

Sir Keir Starmer has made cutting the welfare budget a key project, as spending on sickness benefits soared to £65bn last year – a 25% increase since the year before the pandemic – and is expected to rise to £100bn before the next general election in 2029.

The number of people in England and Wales claiming either sickness or disability benefit has gone from 2.8 million to about four million since 2019.

Ms Kendall also revealed in the Commons the number of young people not working because of mental health conditions has risen by more than 25% in the last year, with the number considered “economically inactive” now reaching 270,000.

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

Unhappy Labour MPs

Ms Kendall had been expected to announce welfare cut plans last week.

But due to the scale of the backlash, the government took the unusual step of asking all 404 Labour MPs to attend “welfare roundtables” in Downing Street last week.

Sky News’ political correspondent Amanda Akass said Ms Kendall’s Commons appearance offered no real answers to the “serious concerns” raised by MPs, though social security minister Stephen Timms insisted they would “welcome” many of the changes when they are announced.

Treasury minister Emma Reynolds earlier played down the level of discontent over plans to freeze PIP, telling Sky News the roundtables were nothing more than “everyday business”.

She pointed out Labour created the welfare state in 1945, but said it needs to be “more sustainable”.

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Democrats probe housing regulator over considering crypto in mortgages

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Democrats probe housing regulator over considering crypto in mortgages

Democrats probe housing regulator over considering crypto in mortgages

A group of Senate Democrats has probed Federal Housing Finance Agency director William Pulte over his order to propose how to consider crypto in mortgage applications.

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Sir Keir Starmer set for Donald Trump trade talks as PM walks diplomatic line between EU allies and US on Gaza

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Sir Keir Starmer set for Donald Trump trade talks as PM walks diplomatic line between EU allies and US on Gaza

Gaza and transatlantic trade are set to dominate talks between Donald Trump and Sir Keir Starmer when the pair meet in Scotland on Monday.

Downing Street said the prime minister would discuss “what more can be done to secure the ceasefire [in the Middle East] urgently”, during the meeting at the president’s Turnberry golf course in Ayrshire.

Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams.

Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group “didn’t want to make a deal… they want to die”.

Sir Keir has tried to forge close personal ties with the president, frequently praising his actions on the world stage despite clear foreign policy differences between the US and UK.

The approach seemed to pay off in May when Mr Trump announced the agreement of a trade deal with the UK that would see several tariffs lowered.

The two leaders are expected to discuss this agreement when they meet, with the prime minister likely to press the president for a lowering of outstanding tariffs on imports such as steel.

Prior to the visit, the White House said the talks would allow them to “refine the historic US-UK trade deal”.

Extracting promises from the president on the Middle East may be harder though.

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Should aid be dropped into Gaza?

Despite some reports that Mr Trump is growing frustrated with Israel, there is a clear difference in tone between the US and its Western allies.

As he did over the Ukraine war, Sir Keir will have to walk a diplomatic line between the UK’s European allies and the White House.

On Thursday, French President Emmanuel Macron announced his country would formally recognise a Palestinian state in September, the first member of the G7 to do so.

That move was dismissed by Mr Trump, who said it “doesn’t carry any weight”.

Read more from Sky News:
US and EU agree trade deal – with bloc facing 15% tariffs
Geldof accuses Israel of ‘lying’ about Gaza starvation

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Trump: ‘It doesn’t matter what Macron says’

The UK, French and German leaders spoke over the weekend and agreed to work together on the “next phase” in Gaza that would see transitional governance and security arrangements put in place, alongside the large-scale delivery of aid.

Under pressure from members of his own party and cabinet to follow France and signal formal recognition of Palestine, Sir Keir has gradually become more critical of Israel in recent months.

On Friday, the prime minister said “the starvation and denial of humanitarian aid to the Palestinian people, the increasing violence from extremist settler groups, and Israel’s disproportionate military escalation in Gaza are all indefensible”.

Government sources say UK recognition is a matter of “when, not if”, however, it’s thought Downing Street wants to ensure any announcement is made at a time when it can have the greatest diplomatic impact.

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Baby Zainab starved to death in Gaza

Cabinet ministers will be convened in the coming days, during the summer recess, to discuss the situation in Gaza.

The UK has also been working with Jordan to air drop supplies, after Israel said it would allow foreign countries to provide aid to the territory.

President Trump’s trip to Scotland comes ahead of his second state visit to the UK in September.

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Downing Street says Ukraine will also likely be discussed in the meeting with both men reflecting on what can be done to force Russia back to the negotiating table.

After the meeting at Turnberry, the prime minister will travel with the president to Aberdeen for a private engagement.

Mr Trump is also expected to meet Scottish First Minister John Swinney while in the country.

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Crypto isn’t crashing the American dream; it’s renovating it

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Crypto isn’t crashing the American dream; it’s renovating it

Crypto isn’t crashing the American dream; it’s renovating it

The US housing regulator’s decision to recognize crypto assets in mortgage applications marks a historic shift from exclusion to integration, opening new pathways to homeownership.

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