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The Labour government has unveiled a raft of plans for changes to the UK’s welfare system, which it says will save the UK a total of £5bn.

Work and Pensions Secretary Liz Kendall detailed the government’s planned reforms to the welfare and benefits system in the House of Commons.

Politics latest: Reaction as welfare system reforms announced

She made clear Labour’s motivation, pointing to the sheer cost of long-term sickness and disability benefits for working-age people, which has risen by £20bn since the pandemic and is forecast to hit £70bn over the next five years.

Here, Sky News looks at all the changes Labour plan to make to the welfare system.

Changes to eligibility for personal independent payments

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PIP is a tax-free payment given to people aged 16-64 to help with the extra costs caused by long-term ill-health or disability.

There are two components of PIP: a daily living part designed for those who have a long-term physical or mental health condition or disability, and a mobility part, for those who have difficulty doing certain everyday tasks or getting around.

It’s possible to meet the criteria for one part or both parts, and payments vary for each.

Ms Kendall confirmed on Tuesday the government will change the criteria to reduce the number of people eligible for PIP.

The minister also confirmed the government will not freeze PIP – as reports had previously suggested – but instead make it harder to qualify from November 2026.

People will need to score at least four points in one activity to qualify for the benefit – a move that will require a change in law. This will not affect the mobility component.

All you need to know about PIP changes – read more here

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‘Government’s plan to cut welfare is terrifying’

Boost to standard universal credit

The government has pledged to raise the standard universal credit allowance by £775 in 2029/30.

Universal credit (UC) is available to those who are on a low income, out of work or cannot work.

The benefit is replacing the six you can currently claim – child tax credit, housing benefit, income support, income-based jobseeker’s allowance, income-related employment and support allowance, and working tax credits.

Alongside a hike in the basic rate of universal credit, Labour have pledged to “switch back on” reassessments after a significant drop in the number carried out in the pandemic.

However, the government said claimants with severe, lifelong disabilities will not usually face benefits reassessments.

Ms Kendall told MPs the government “will legislate to rebalance the payments in universal credit from April next year, holding the value of the health top up fixed in cash terms for existing claimants and reducing it for new claimants, with an additional premium for people with severe lifelong conditions”.

The minister said the government will consult on whether the health top up to UC should be delayed for those under 22, with the savings spent on work support and training opportunities.

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Welfare system ‘letting people down’

Scrap work capability assessments in 2028

It was confirmed that work capability assessments will be entirely scrapped in 2028.

Under the current system, those not fit for work are told they have limited capability for work related activity (LCWRA) – which means they will not receive employment support or further engagement from the system after their assessment, potentially locking them out of future work.

However, work capability assessments (WCA) will be scrapped altogether in three years’ time.

Ms Kendall said the WCA is “not fit for purpose”, describing the assessments as “complex, time-consuming and often stressful for claimants”.

Consider merging benefits into new ‘unemployment insurance’

The government has pledged to consult on merging jobseeker’s allowance and employment support allowance into a new, time-limited “unemployment insurance”.

This would be paid at a higher rate – and claimants would not have to prove they are unable to work in order to receive it.

Ms Kendall said: “So if you have paid into the system, you’ll get stronger income protection while we help you get back on track.”

This new “unemployment insurance” benefit would be created by merging jobseeker’s allowance – the benefit paid to people who are out of work but looking for a job – and the employment and support allowance, used for those with a disability or health condition that affects how much they can work.

Legislating for a ‘right to try’ initiative

Lastly, the government has vowed to legislate for a “right to try” initiative.

The minister told MPs this will guarantee that “work in and of itself will never lead to a benefit reassessment, giving people the confidence to take the plunge and try work without the fear this will put their benefits at risk”.

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‘Shameful’ that black boys in London more likely to die than white boys, says Met Police chief

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'Shameful' that black boys in London more likely to die than white boys, says Met Police chief

It is “shameful” that black boys growing up in London are “far more likely” to die than white boys, Metropolitan Police chief Sir Mark Rowley has told Sky News.

The commissioner told Sunday Morning with Trevor Phillips that relations with minority communities “is difficult for us”.

Sir Mark, who came out of retirement to become head of the UK’s largest police force in 2022, said: “We can’t pretend otherwise that we’ve got a history between policing and black communities where policing has got a lot wrong.

“And we get a lot more right today, but we do still make mistakes. That’s not in doubt. I’m being as relentless in that as it can be.”

He said the “vast majority” of the force are “good people”.

However, he added: “But that legacy, combined with the tragedy that some of this crime falls most heavily in black communities, that creates a real problem because the legacy creates concern.”

Sir Mark, who also leads the UK’s counter-terrorism policing, said it is “not right” that black boys growing up in London “are far more likely to be dead by the time they’re 18” than white boys.

“That’s, I think, shameful for the city,” he admitted.

The Met Police chief’s admission comes two years after an official report found the force is institutionally racist, misogynistic and homophobic.

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Police chase suspected phone thief

Baroness Casey was commissioned in 2021 to look into the Met Police after serving police officer Wayne Couzens abducted, raped and murdered Sarah Everard.

She pinned the primary blame for the Met’s culture on its past leadership and found that stop and search and the use of force against black people was excessive.

At the time, Sir Mark, who had been commissioner for six months when the report was published, said he would not use the labels of institutionally racist, institutionally misogynistic and institutionally homophobic, which Casey insisted the Met deserved.

However, London Mayor Sadiq Khan, who helped hire Sir Mark – and could fire him – made it clear the commissioner agreed with Baroness Casey’s verdict.

After the report was released, Sir Mark said “institutional” was political language so he was not going to use it, but he accepted “we have racists, misogynists…systematic failings, management failings, cultural failings”.

A few months after the report, Sir Mark launched a two-year £366m plan to overhaul the Met, including increased emphasis on neighbourhood policing to rebuild public trust and plans to recruit 500 more community support officers and an extra 565 people to work with teams investigating domestic violence, sexual offences and child sexual abuse and exploitation.

Watch the full interview on Sunday Morning with Trevor Phillips from 8.30am on Sunday.

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Unite votes to suspend Angela Rayner over Birmingham bin strike

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Unite votes to suspend Angela Rayner over Birmingham bin strike

Labour’s largest union donor, Unite, has voted to suspend Deputy Prime Minister Angela Rayner over her role in the Birmingham bin strike row.

Members of the trade union, one of the UK’s largest, also “overwhelmingly” voted to “re-examine its relationship” with Labour over the issue.

They said Ms Rayner, who is also housing, communities and local government secretary, Birmingham Council’s leader, John Cotton, and other Labour councillors had been suspended for “bringing the union into disrepute”.

There was confusion over Ms Rayner’s membership of Unite, with her office having said she was no longer a member and resigned months ago and therefore could not be suspended.

But Unite said she was registered as a member. Parliament’s latest register of interests had her down as a member in May.

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The union said an emergency motion was put to members at its policy conference in Brighton on Friday.

More on Angela Rayner

Unite is one of the Labour Party’s largest union donors, donating £414,610 in the first quarter of 2025 – the highest amount in that period by a union, company or individual.

The union condemned Birmingham’s Labour council and the government for “attacking the bin workers”.

Mountains of rubbish have been piling up in the city since January after workers first went on strike over changes to their pay, with all-out strike action starting in March. An agreement has still not been made.

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Rat catcher tackling Birmingham’s bins problem

Ms Rayner and the councillors had their membership suspended for “effectively firing and rehiring the workers, who are striking over pay cuts of up to £8,000”, the union added.

‘Missing in action’

General secretary Sharon Graham told Sky News on Saturday morning: “Angela Rayner, who has the power to solve this dispute, has been missing in action, has not been involved, is refusing to come to the table.”

She had earlier said: “Unite is crystal clear, it will call out bad employers regardless of the colour of their rosette.

“Angela Rayner has had every opportunity to intervene and resolve this dispute but has instead backed a rogue council that has peddled lies and smeared its workers fighting huge pay cuts.

“The disgraceful actions of the government and a so-called Labour council, is essentially fire and rehire and makes a joke of the Employment Relations Act promises.

“People up and down the country are asking whose side is the Labour government on and coming up with the answer not workers.”

SN pics from 10/04/25 Tyseley Lane, Tyseley, Birmingham showing some rubbish piling up because of bin strikes
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Piles of rubbish built up around Birmingham because of the strike over pay

Sir Keir Starmer’s spokesman said the government’s “priority is and always has been the residents of Birmingham”.

He said the decision by Unite workers to go on strike had “caused disruption” to the city.

“We’ve worked to clean up streets and remain in close contact with the council […] as we support its recovery,” he added.

A total of 800 Unite delegates voted on the motion.

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Binance’s CZ threatens to sue Bloomberg over Trump stablecoin report

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Binance’s CZ threatens to sue Bloomberg over Trump stablecoin report

Binance’s CZ threatens to sue Bloomberg over Trump stablecoin report

Binance co-founder CZ has dismissed a Bloomberg report linking him to the Trump-backed USD1 stablecoin, threatening legal action over alleged defamation.

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