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Rachel Reeves will unveil further welfare cuts in her spring statement after being told the reforms announced last week will save less than planned, Sky News understands.

The Office for Budget Responsibility (OBR) has rejected the government’s assessment that the package of measures, including narrowing the eligibility criteria for personal independence payments (PIP), will save £5bn.

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The fiscal watchdog put the value of the cuts at £3.4bn, leaving ministers scrambling to find further savings.

Ms Reeves is now expected to announce that universal credit (UC) incapacity benefits for new claimants, which were halved under the original plan, will also be frozen until 2030 rather than rising in line with inflation

As originally reported by The Times, there will also be a small reduction in the basic rate of UC in 2029, with the new measures expected to raise £500m.

A Whitehall source told Sky’s political editor Beth Rigby that it is “hard to tell how MPs will react”, as while the OBR’s assessment means fewer people will be affected by the PIP changes than thought, they “might be unhappy about the chaotic nature of it all”.

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The government did not publish an impact assessment of the crackdown on benefits it announced last week, saying that would come alongside the spring statement on Wednesday.

Several Labour MPs criticised the measures as pushing more sick and disabled people into poverty, while former Labour leader Jeremy Corbyn called the package a “disgrace” on Tuesday and accused the government of imposing austerity on the country.

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‘Labour MPs are upset’

Spending cuts expected

Ms Reeves is expected to announce a large package of departmental spending cuts when she gives an update on the economy on Wednesday, potentially putting her on a further collision course with her own MPs.

Having only committed to doing one proper budget each year in the autumn, the spring statement was meant to be a low-key affair.

However, a turbulent economic climate since October means the OBR is widely expected to downgrade its growth forecasts for the UK while the government has borrowed more than previously expected.

This has wiped out the £9.9bn gap in her fiscal headroom Ms Reeves left herself at her budget last year – money she needs to make up if she wants to stick to her self-imposed fiscal rule that day-to-day spending must be funded through tax receipts, not debt, by 2029-30.

Chancellor of the Exchequer Rachel Reeves during a visit to Bury College in Greater Manchester. Picture date: Thursday March 20, 2025. Anthony Devlin/PA Wire
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Chancellor Rachel Reeves. Pic: PA

The chancellor has sought to blame global factors but the Conservatives blame measures like the national insurance tax hike on employers, saying this is choking business.

Shadow chancellor Mel Stride urged Ms Reeves to “use the emergency budget” to “fix her own mistakes and end Labour’s war on enterprise”.

Ms Reeves will defend her record in the spring statement, saying she is “proud” of what Labour has achieved in its first nine months in office.

However, on the eve of the statement, polling showed the public is pessimistic about what is to come.

According to More in Common, half think the cost of living crisis will never end, while YouGov found three-quarters of people want to see a tax on the richest over spending cuts.

Ms Reeves is not expected to announce any tax hikes, having said her tax-raising budget in October was a once-in-a-parliament event.

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Defence increase to ‘deliver security’

In a bid to fend off criticism, she will also announce an extra £2.2bn will be spent on defence over the next year to “deliver security for working people”.

The money is part of the government’s aim to hike defence spending to 2.5% of the UK’s economic output by 2027 – up from the 2.3% where it stands now.

Ms Reeves will insist this plan, set out by the prime minister in February, was the “right decision” against the backdrop of global instability, saying it will put “an extra 6.4bn into the defence budget by 2027”.

“This increase in investment is not just about increasing our national security but increasing our economic security, too,” she will say.

The money is coming from reductions to the international aid budget and Treasury reserves, and will be used to invest in new technology, refurbish homes for military families and upgrade HM Naval Base Portsmouth.

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Woman dies in skydiving incident in County Durham

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Woman dies in skydiving incident in County Durham

A woman has died in a skydiving incident in County Durham.

Emergency crews were called to Wreford’s Farm in Shotton Colliery, near Peterlee, on Sunday morning.

The woman, aged in her 30s, was pronounced dead at the scene.

A Durham Constabulary spokesperson said the woman’s death is not being treated as suspicious and a file will be prepared for the coroner.

North East Ambulance Service said it was called to the incident at 10.17am on Sunday.

“We dispatched one ambulance crew and one specialist paramedic to the incident,” a spokesperson added.

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Wreford’s Farm is described on its website as a “small, family run farm” which produces pork and beef using “regenerative agriculture”.

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No criminal charges over death of ice hockey player Adam Johnson whose neck was cut by opponent’s skate

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No criminal charges over death of ice hockey player Adam Johnson whose neck was cut by opponent's skate

No criminal charges will be brought over the death of an ice hockey player who died during a match in Sheffield, prosecutors have announced.

Nottingham Panthers’ Adam Johnson died in October 2023 after his neck was cut by an opposition player’s skate during a match at Sheffield’s Utilita Arena.

The Sheffield Steelers player, Matthew Petgrave, was arrested on suspicion of manslaughter and later bailed – but the Crown Prosecution Service (CPS) has now said it will not bring criminal charges against the Canadian.

Michael Quinn, deputy chief crown prosecutor, said: “This was a shocking and deeply upsetting incident. The CPS and South Yorkshire Police have worked closely together to determine whether any criminal charges should be brought against the other ice hockey player involved.

“Following a thorough police investigation and a comprehensive review of all the evidence by the CPS, we have concluded that there is not a realistic prospect of conviction for any criminal offence and so there will not be a prosecution.

“Our thoughts remain with the family and friends of Adam Johnson.”

Flowers and messages left in tribute to Nottingham Panthers' ice hockey player Adam Johnson outside the Motorpoint Arena in Nottingham, the home of the Panthers. Mr Johnson died after an accident during a Challenge Cup match with Sheffield Steelers on Saturday night. Picture date: Monday October 30, 2023.
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Tributes were left outside the Motorpoint Arena in Nottingham following the ice hockey player’s death. Pic PA

Before joining Nottingham Panthers, the Minnesota-born Johnson played in Pennsylvania for the Pittsburgh Penguins, and Sweden for the Malmo Redhawks.

He also played in California for Ontario Reign and in Germany for Augsburger Panther.

A post-mortem examination confirmed the 29-year-old died as a result of the fatal neck injury.

The crowd of 8,000 spectators watched in horror as desperate attempts were made to save his life as he lay on the ice, shielded by fellow players.

The game was abandoned and spectators were asked to leave in the aftermath.

Lit candles among the flowers and messages left in tribute to Nottingham Panthers' ice hockey player Adam Johnson outside the Motorpoint Arena in Nottingham, the home of the Panthers. Mr Johnson died after an accident during a Challenge Cup match with Sheffield Steelers on Saturday night. Picture date: Monday October 30, 2023.
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Pic PA

Kari Johnson, Johnson’s aunt, was watching the match via a livestream with his father and grandmother when he was fatally injured.

Speaking to Sky News at the time, Ms Johnson said: “It was a mess, it was a nightmare, it was like it wasn’t real. We were in shock, we couldn’t believe this was happening.”

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Kari Johnson said her nephew was ‘a kind soul’

Ms Johnson described her nephew as a “kind soul” and a “private kid” who “never would have wanted to be in the limelight like this”.

He simply wanted to be “good at hockey and have fun”, she said, adding he was “having the time of his life in the UK” and was planning to get engaged to his girlfriend.

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In January 2024, Sheffield’s senior coroner, Tanyka Rawden, suspended her investigation while the police inquiry took its course.

It later emerged that Ms Rawden had issued a Prevention of Future Deaths Report to Ice Hockey UK and the English Ice Hockey Association (EIHA) about the use of neck guards in the sport.

In the report, Ms Rawden said she was “sufficiently concerned that deaths may occur in the future if neck guards or protectors are not worn”, with the bodies given 56 days to say what action had been taken – or why action had not been taken.

Neck guards have been mandatory in the Elite League (EIHL), in which the Nottingham Panthers and Sheffield Steelers compete, since January 2024.

This followed the International Ice Hockey Federation’s decision in December to mandate the use of neck laceration protectors for its competitions.

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Government reviewing ‘right to family life’ court decisions as sex offenders to be denied refugee status

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Government reviewing 'right to family life' court decisions as sex offenders to be denied refugee status

Court decisions where people were granted asylum after arguing they had a “right to family life” will be reviewed as the government plans to ban migrants convicted of sex offences, the home secretary has said.

Foreign nationals who are added to the sex offenders register will forfeit their rights to protection under the Refugee Convention, the Home Office announced.

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As part of the 1951 UN treaty, countries are allowed to refuse asylum to terrorists, war criminals and individuals convicted of a “particularly serious crime” – which is currently defined in UK law as an offence carrying a sentence of 12 months or more.

The government now plans to extend that definition to include all individuals added to the Sex Offenders’ Register, regardless of the length of sentence, in an amendment to the Border Security, Asylum and Immigration Bill, which is currently going through parliament.

Home Secretary Yvette Cooper told Sky News the new definition would also “take into account” sexual offence convictions in another country.

However, she was less clear if those affected will still be able to appeal against their removal from the UK under the European Convention on Human Rights (ECHR).

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More than 10,000 people have now been detected crossing the Channel. Pic: PA
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More than 10,000 people have now been detected crossing the Channel. Pic: PA

She said: “We continue to comply with international law, but the whole point is that our laws and our frameworks are about how we interpret international law… and how we make sure that the courts are then making their decisions based on the UK law that parliament has passed.”

She added the government is “reviewing” a “series of decisions” made in the courts where criminals have been allowed to stay in the UK under Article 8 of the Human Rights Act, which protects the right to respect “your private life, your family life, your home and your correspondence”.

“We are reviewing that because we do believe that the way in which it’s being interpreted in the courts is an issue and actually, there is greater clarification we can provide through our law to address that,” she said.

It is unclear how many asylum seekers will be affected by the change in law, as the government has been unable to provide any projections or past data on the number of asylum seekers added to the Sex Offenders’ Register.

Ms Cooper earlier said: “Sex offenders who pose a risk to the community should not be allowed to benefit from refugee protections in the UK. We are strengthening the law to ensure these appalling crimes are taken seriously.”

Safeguarding and Violence Against Women and Girls Minister Jess Philips said: “We are determined to achieve our mission of halving violence against women and girls in a decade.

“That’s exactly why we are taking action to ensure there are robust safeguards across the system, including by clamping down on foreign criminals who commit heinous crimes like sex offences.”

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Has Labour tackled migration?

The Home Office would like voters to see this as a substantial change. But that’s hard to demonstrate without providing any indication of the scale of the problem it seeks to solve.

Clearly, the government does not want to fan the flames of resentment towards asylum seekers by implying large numbers have been committing sex crimes.

But amid rising voter frustration about the government’s grip on the issue, and under pressure from Reform – this measure is about signalling it is prepared to take tough action.

Conservatives: ‘Too little, too late’

The Conservatives claim Labour are engaged in “pre-election posturing”.

Chris Philp, the shadow home secretary, said: “This is too little, too late from a Labour government that has scrapped our deterrent and overseen the worst year ever for small boat crossings – with a record 10,000 people crossing this year already.

“Foreign criminals pose a danger to British citizens and must be removed, but so often this is frustrated by spurious legal claims based on human rights claims, not asylum claims.”

The Home Office has also announced plans to introduce a 24-week target for appeal hearings (known as “first-tier tribunals”) to be held for rejected asylum seekers living in taxpayer-supported accommodation, or for foreign national offenders.

The current average wait is 50 weeks.

The idea is to cut the asylum backlog and save taxpayers money – Labour have committed to end the use of asylum hotels by the end of this parliament.

It’s unclear how exactly this will be achieved, although a number of additional court days have already been announced.

The government also plans to crack down on fake immigration lawyers who advise migrants on how to lodge fraudulent asylum claims, with the Immigration Advice Authority given new powers to issue fines of up to £15,000.

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