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The government will not follow the advice of the previous Tory administration when it comes to slashing the welfare bill, a minister has said following reports the chancellor is eyeing up £3bn worth of cuts.

Work and pensions minister Alison McGovern said the UK was “paying the price of failure” from the previous government, with around 1.8 million people out of work who say they want a job.

Ahead of the budget, the government is looking to raise up to £40bn through tax hikes and spending cuts, to the alarm of some ministers who are concerned by the scale of the chancellor’s plans.

There have been reports that the Department for Work and Pensions is one target for cuts, with Rachel Reeves seeking to slash around £3bn from the welfare bill over the next four years by restricting access to sickness benefits.

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According to The Daily Telegraph, Ms Reeves hopes to achieve this by following the previous government’s plans to reform work capability rules by tightening eligibility, so that around 400,000 more people who are signed off long-term would be assessed as needing to prepare for employment by 2028/29 – a move that would reduce the benefits bill by an estimated £3bn.

Asked whether those who are not currently in work could expect to see their benefits cut, Ms McGovern said there had “always been rules” in the UK’s social security system, with a “duty on both sides”.

“People who are receiving social security have a duty to comply with those rules and the government has a duty to help people,” she said.

But she appeared to distance herself from the suggestion that Labour would follow the Conservatives’ blueprint, telling Sky News: “Like all departments, the Department for Work and Pensions has to make savings because the financial situation our country is in is not good at all.

“But I don’t think we should follow the advice of a Conservative government that failed over 14 years – so we will bring forward our own proposals.”

Before the election, The Tories pledged to reform the disability benefits system and target it at those most in need by tightening the criteria for work capability assessments.

They also proposed to pass on the responsibility for issuing sick notes from GPs to specialist work and health professionals.

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Rishi Sunak also pledged to take benefits away from people who were fit to work but did not accept job offers after 12 months, and to tighten the work capability assessment so those with less severe conditions would be expected to seek employment.

It is understood the chancellor will commit to the plan to save £3bn over four years, but Liz Kendall, the work and pensions secretary, will decide how the system will be changed in order to achieve this.

The reforms will also include overhauling job centres, delivering a “youth guarantee” to ensure young people are either working or learning, and devolving power to local leaders.

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The 800,000 people who have fallen into ‘economic inactivity’
Surge in young people claiming disability benefits, research suggests

Ms McGovern said it was the government’s ambition to get 80% of people into work, which would translate to more than two million extra people in the Labour market.

She said this could be achieved in part by reforming job centres, which she called “the most unloved public service”, adding: “The system we have means that people go into a job centre, they see somebody for ten minutes, tick the box and you’re off.

“And that has got to change because we’ve had 14 years of failure when it comes to our economy and getting people into work.”

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Crypto to ‘Banana Singularity,’ Bybit halts India services, and more: Hodler’s Digest, Jan. 5 – 11

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Crypto to ‘Banana Singularity,’ Bybit halts India services, and more: Hodler’s Digest, Jan. 5 – 11

Real Vision co-founder and CEO Raoul Pal says crypto is heading for ‘Banana Singularity,’ Russia seizes $10M in Bitcoin, and more: Hodler’s

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Kemi Badenoch calls on Sir Keir Starmer to sack Tulip Siddiq over property allegations

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Kemi Badenoch calls on Sir Keir Starmer to sack Tulip Siddiq over property allegations

Conservative Party leader Kemi Badenoch has called on Sir Keir Starmer to sack Treasury minister Tulip Siddiq over allegations she lived in properties linked to allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh.

It comes after the current Bangladeshi leader, Muhammad Yunus, said London properties used by Ms Siddiq should be investigated.

He told the Sunday Times the properties should be handed back to his government if they were acquired through “plain robbery”.

Tory leader Ms Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.

“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.

“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”

Ms Siddiq insists she has “done nothing wrong”.

Her aunt was ousted from office in August following an uprising against her 20-year leadership and fled to India.

Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.

Kemi Badenoch
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Tory leader Kemi Badenoch has called on Sir Keir to sack the minister

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Liz Truss sends cease and desist letter to Starmer

As economic secretary to the Treasury, Ms Siddiq is responsible for policy on both the City and tackling corruption.

She referred herself to the prime minister’s ethics watchdog on Monday following the reports about the properties.

On the same day, the prime minister said: “Tulip Siddiq has acted entirely properly by referring herself to the independent adviser, as she’s now done, and that’s why we brought into being the new code.

“It’s to allow ministers to ask the adviser to establish the facts, and yes, I’ve got confidence in her, and that’s the process that will now be happening.”

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Kenya drafts legislation to regulate cryptocurrencies

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Kenya drafts legislation to regulate cryptocurrencies

Kenya is preparing legislation to regulate cryptocurrencies with a draft proposal open for public feedback until Jan. 24.

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