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No U-turn comes without a political cost.

This weekend, it has become clear there is a price to pay for Sir Keir Starmer’s decision to row back on winter fuel payment cuts.

One MP said in a text message: “We all want to see more”, while former prime minister Gordon Brown told Sky News this week the two-child benefit cap was “pretty discriminatory” and could be scrapped.

Nigel Farage
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Nigel Farage is expected to call for the two-child benefit cap to be scrapped

The cap, which prevents parents from claiming child tax credit or universal credit for more than two children, is a symbolic sore for Labour that saw seven MPs suspended from the party last year.

Now it’s back to cause more trouble.

A Downing Street source suggests little has changed in the last week, and looking at the cap has always been part of the (now delayed) Child Poverty Strategy.

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‘You’ve got to be fair to pensioners’

But, beyond the whispers behind the scenes, one thing has overtly changed this weekend – growing pressure from Nigel Farage.

We expect Reform UK to announce this week that it will reinstate winter fuel payments and drop the cap.

Mr Farage is parking his tanks on Labour’s lawn, trying to tap into working-class votes on uncomfortable territory for Mr Starmer.

How would they pay for it? A combination of closing asylum hotels, cutting aid, and scrapping net-zero targets, the party says.

Kemi Badenoch on Sunday Morning with Trevor Phillips.
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Conservative leader Kemi Badenoch

Headline-grabbing move

The beauty of not being in power is not having to make all the sums add up right now, and it is a headline-grabbing announcement that will, at the very least, reignite the conversation about the two-child cap.

It’s also a reminder that Reform UK, who were beaten by Labour in 89 out of the 98 constituencies they came second in last year, have set their sights beyond the Conservatives.

As for the Tories, who introduced the measure in 2017, leader Kemi Badenoch is clear, saying: “If you can’t afford to have lots of children, then you shouldn’t do so”.

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Deputy Prime Minister Angela Rayner is hoping for an update on the winter fuel allowance

Blue water between Tories and Reform UK

So, there is blue water between the Conservatives and Reform, but it’s the prime minister and his party that Nigel Farage is targeting now, and Labour is unclear on where it stands.

Deputy leader Angela Rayner told Sunday Morning With Trevor Phillips that “lifting any measures that alleviate poverty is not a bad idea”.

More from Sky News:
PM’s winter fuel claim ‘not credible’
Starmer-Reeves Downing St ‘rift’

With the spending review fast approaching, Sir Keir and Chancellor Rachel Reeves will be working out the actual cost, beyond the political one, of rowing back on winter fuel payment cuts.

But will the anger that the policy ignited among some Labour MPs end there? Or will it move to another uncomfortable subject?

As one MP puts it: “If there’s money for pensioners, why not children?”

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Rayner ‘hoping’ for winter fuel update within weeks – and says she ‘never’ wants to be Labour leader

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Rayner 'hoping' for winter fuel update within weeks - and says she 'never' wants to be Labour leader

Deputy Prime Minister Angela Rayner has told Sky News she “hopes” there will be an update on the winter fuel U-turn within weeks.

Ms Rayner also used her interview on Sunday Morning With Trevor Phillips to say she “never” wants to lead her party.

Some had suggested recent leaks of her plans for when taxes should change were her testing the waters to run a challenge against Sir Keir Starmer.

Politics latest: Badenoch on two-child cap

Earlier this week, the prime minister confirmed his party was looking to make changes to its controversial slashing of winter fuel payments to pensioners at an upcoming “fiscal event”.

Little clarity was provided on when this would be – the budget in the autumn thought the most likely.

Deputy Prime Minister Angela Rayner during a visit to Rossington Miners' Welfare in Doncaster, South Yorkshire, whilst campaigning for this week's local elections. Picture date: Wednesday April 30, 2025.
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Angela Rayner says she wants the changes announced soon. Pic: PA

Ms Rayner has now suggested the 11 June spending review in just over a fortnight is her preferred date.

She told Sky News: “I think that we’ve got the upcoming spending review, and I’m sure that the chancellor will set it out when we’ve got the opportunity – at the first opportunity Trevor she will set out what we’ll be able to do.”

Asked if changes might be announced at the review, Ms Rayner said: “I hope so, but I don’t know. But I hope so.

“I mean, the prime minister’s announced it, so logically to me that indicates that the prime minister wants to do something in this area.

“And if the prime minister wants to do that, I’m sure the chancellor is going to look at how we can achieve that.”

Read more:
Starmer confirms U-turn on winter fuel
Decision needs ‘strong enough’ economy
Analysis: It could have profound consequences

Never wants to be leader

Some might suggest Ms Rayner’s stance was a bid to push Downing Street into an announcement faster than it previously wanted.

It would add to rumours the deputy prime minister is unhappy with the way Sir Keir and Rachel Reeves are running the government.

However, when asked by Trevor Phillips if she wanted to lead her party, Ms Rayner was unequivocal.

“No. I’m very happy and honoured to be deputy prime minister of this country,” she said.

“And I’ve got a lot in my in-tray to prove that I can do the job that I’m doing and deliver on the milestones for the people in this country.”

She continued: “I have no desire to go for the leadership of the Labour Party.”

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Asked to say the word “never”, Ms Rayner repeated “never”.

Ms Rayner also confirmed a leak inquiry was under way after her proposals on tax and spend sent to the chancellor ended up published in The Daily Telegraph.

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Pakistan allocates 2,000MW power for Bitcoin mining and AI centers

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Pakistan allocates 2,000MW power for Bitcoin mining and AI centers

Pakistan allocates 2,000MW power for Bitcoin mining and AI centers

Pakistan has allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence centers.

The move is part of a broader digital transformation plan spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, according to a May 25 report by local news outlet 24NewsHD TV Channel.

In the first phase, the government plans to channel excess power into AI infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb said the decision is expected to attract billions in foreign investment while generating high-tech employment across the country.

The initiative’s second phase will introduce access to renewable energy for mining operations, aiming to balance growth with environmental responsibility.

Related: Trump-backed World Liberty Financial partners with Pakistan Crypto Council

Pakistan unveils tax incentives to attract investors

Per the report, interest from international Bitcoin (BTC) miners and AI firms has already picked up. Officials confirmed that multiple foreign delegations have visited Pakistan in recent months to explore potential partnerships.

To further incentivize investment, the Ministry of Finance announced a package of tax incentives for AI centers and duty exemptions for Bitcoin miners.

Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, reportedly welcomed the development, calling it a “turning point” for the country’s digital economy.

Saqib claimed that with clear regulations and a transparent framework, Pakistan could emerge as a significant player in the global crypto and AI sectors.

Saqib first proposed using the country’s runoff energy to fuel Bitcoin mining at the Crypto Council’s inaugural meeting on March 21.

The meeting included lawmakers, the Bank of Pakistan’s governor, the chairman of Pakistan’s Securities and Exchange Commission (SECP), and the federal information technology secretary.

Related: Pakistan proposes compliance-based crypto regulatory framework — Report

Pakistan creates Digital Asset Authority

On May 21, Pakistan’s Ministry of Finance endorsed the creation of a dedicated body to regulate blockchain-based financial infrastructure in the country.

The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications.

The PDAA will also be tasked with tokenizing national assets and government debt, facilitating monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and helping startups build blockchain-based solutions at scale.

Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in ninth, mainly due to strong retail adoption and transactions at centralized services.

Pakistan allocates 2,000MW power for Bitcoin mining and AI centers
Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in 9th. Source: Chainalysis

Data from Statista also shows Pakistan’s crypto market is “experiencing rapid growth,” estimating the number of crypto users to amount to over 27 million by 2025, out of a population of 247 million.

Magazine: Bitcoin bears eye $69K, CZ denies WLF ‘fixer’ rumors: Hodler’s Digest, May 18 – 24

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Crypto investor charged with kidnapping, torturing an Italian for passwords

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Crypto investor charged with kidnapping, torturing an Italian for passwords

Crypto investor charged with kidnapping, torturing an Italian for passwords

A Manhattan crypto investor is facing serious charges after allegedly kidnapping and torturing an Italian man in a disturbing bid to extract access to digital assets.

John Woeltz, 37, was arraigned on Saturday in Manhattan criminal court following his arrest on Friday. He stands accused of holding a 28-year-old Italian man captive for weeks inside a luxury townhouse in Soho, reportedly rented for $30,000 per month.

According to police reports cited by The New York Times, the victim arrived in the US on May 6 and was allegedly abducted by Woeltz and an accomplice.

The attackers are said to have stolen the man’s passport and electronic devices before demanding the password to his Bitcoin (BTC) wallet. When he refused, the suspects allegedly subjected him to prolonged physical abuse.

Crypto investor charged with kidnapping, torturing an Italian for passwords
Source: Mario Nawfal

Related: Violent crypto robberies on the rise: Six attacks that targeted investors

Crypto victim beaten, electroshocked

The victim described being beaten, shocked with electricity, assaulted with a firearm and even dangled from the upper floors of the five-story building.

He also told police that Woeltz used a saw to cut his leg and forced him to smoke crack cocaine. Threats were also reportedly made against his family.

Photographic evidence found inside the property, including Polaroids, appears to support claims of sustained abuse. The victim managed to escape on Friday and alert authorities, leading to Woeltz’s arrest.

Woeltz was charged with four felony counts, including kidnapping for ransom, and entered a plea of not guilty. Judge Eric Schumacher ordered him to be held without bail. He is expected back in court on May 28.

A 24-year-old woman was also taken into custody on Friday in connection with the incident. However, she was seen walking freely in New York the next day, and no charges against her were found in the court’s online database.

Authorities have yet to clarify the relationship between the suspect and the victim or whether any cryptocurrency was ultimately stolen.

Related: Crypto crime goes industrial as gangs launch coins, launder billions — UN

Crypto executives turn to bodyguards

Executives and investors in the crypto industry are increasingly seeking personal security services as kidnapping and ransom cases surge, especially in France.

On May 18, Amsterdam-based private firm Infinite Risks International reported a rise in requests for bodyguards and long-term protection contracts from high-profile figures in the space.

French authorities have responded by introducing enhanced protections for crypto entrepreneurs and their families, including security briefings and priority access to police assistance.

This comes amid a recent surge in kidnappings and ransom attempts. David Balland, the co-founder of hardware wallet company Ledger, was kidnapped in January 2025 and held for ransom for several days before being rescued by French police.

In May 2024, the father of an unnamed crypto entrepreneur was freed from a ransom attempt after French law enforcement officials raided the location in a Paris suburb where the individual was being held hostage by organized criminals.

Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express

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