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Since taking office nine months ago Sir Keir Starmer has weathered party rows about winter fuel payments, the two child benefit cap, WASPI women, airport expansion and cuts to international aid.

All of these decisions have been justified in the name of balancing the books – filling that notorious £22bn black hole, sticking to the fiscal rules, and in the pursuit of growth as the government’s number one priority.

But welfare reform feels like a far more existential row.

Health Secretary Wes Streeting argued on Sunday Morning With Trevor Phillips that the current system is “unsustainable”.

Ministers have been making the point for weeks that the health benefits bill for working-age people has ballooned by £20bn since the pandemic and is set to grow by another £18bn over the next five years, to £70bn.

But the detail of where those cuts could fall is proving highly divisive.

One proposal reportedly under consideration has been to freeze personal independence payments (PIPs) next year, rather than uprating them in line with inflation.

Charities have warned this would be a catastrophic real-terms cut to 3.6 million people.

Concerned left-wing backbenchers are calling on the government to tax the rich, not take from the most vulnerable.

The Sunday Times and Observer have now reported that Work and Pensions Secretary Liz Kendall has dropped the idea in response to the backlash.

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Streeting denies Labour ‘changing into Tories’
Planned PIP freeze set to be scrapped – reports
What cuts could be announced?

Wes Streeting denied reports of a cabinet row over the plan, insisting the final package of measures hasn’t yet been published and he and his cabinet colleagues haven’t seen it.

Not the final version perhaps – but given all backbench Labour MPs who were summoned to meetings with the Number 10 policy teams for briefings this week, that response is perhaps more than a little disingenuous.

In his interview with Sir Trevor Phillips, he went on to make the broader case for PIP reform – highlighting the thousand people who sign up to the benefit every day and arguing that the system needs to be “sustainable”, to “deliver for those that need it most” and “provide the right kind of support for the different types of need that exist”.

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Streeting defends PM’s comments on ‘flabby’ public sector

To me this signals the government are preparing to unveil a tighter set of PIP eligibility criteria, with a refocus on supporting those with the greatest needs.

Changes to incapacity benefit to better incentivise working – for those who can – are also clearly on the cards.

The health secretary has been hitting out at the “overdiagnosis” of mental health conditions, arguing that “going out to work is better for your mental and physical health, than being spent and being stuck at home”, and promising benefit reforms that will help support people back to work rather than “trapped in the benefits system”.

Turning Tory?

Starmer said this week the current welfare system couldn’t be defended on economic or moral grounds.

The Conservatives don’t disagree.

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Conservatives: Scrapping NHS England is ‘right thing’

Before the election, they proposed £12bn in cuts to the welfare bill, with a focus on getting people on long-term sickness back to work.

This morning, shadow education secretary Laura Trott claimed Labour denied that welfare cuts were needed during the election campaign and had wasted time in failing to include benefits reform in the King’s Speech.

“They’re coming to this chaotically, too late and without a plan,” she said.

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Notwithstanding the obvious critique that the Tories had 14 years to get a grip on the situation – what’s most striking here is that, yet again, the Labour government seems to be borrowing Conservative clothes.

When challenged by Sir Trevor this morning, Streeting denied they were turning Tory – claiming the case for welfare reform and supporting people into work is a Labour argument.

But, from increasing defence spending and cutting the aid budget to scrapping NHS England, there’s a definite pattern emerging.

If you didn’t know a Labour administration was in charge, you might have assumed these were the policies of a Conservative government.

It’s a strategy which makes many of his own backbenchers deeply uncomfortable.

But it’s doing a good job of neutering the Tory opposition.

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Appeals court overturns injunction that blocked asylum seekers from Epping hotel

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Appeals court overturns injunction that blocked asylum seekers from Epping hotel

A temporary injunction that would have blocked asylum seekers from being housed at the Bell Hotel in Essex has been overturned at the Court of Appeal.

The Home Office and Somani Hotels, which owns the Bell Hotel in Epping, have successfully challenged a High Court ruling. Today’s hearing saw both parties win the right to appeal, before also winning the appeals themselves.

Lord Justice Bean, sitting with Lady Justice Nicola Davies and Lord Justice Cobb, quashed an earlier injunction granted to Epping Forest District Council, saying: “We allow the appeals and we set aside the injunction imposed on 19 August 2025.”

This means asylum seekers will stay in the accommodation in Essex past 12 September. There are currently 138 asylum seekers being housed at the hotel.

Lord Justice Bean delivering the ruling. Pic: PA
Image:
Lord Justice Bean delivering the ruling. Pic: PA

Last week, the initial court ruling centred on the change in use of the premises without consent from the local authority.

But after the Home Office argued its case – which involved stating it had the right to appeal – judges have backed the government’s side.

The decision avoids a precedent for other councils to appeal against asylum hotels in their areas.

Council ‘will continue the fight’

A councillor for Epping said the “battle is not over” after the Court of Appeal ruling and vowed the council would “continue the fight”.

Councillor Ken Williamson. Pic: PA
Image:
Councillor Ken Williamson. Pic: PA

Speaking outside the London court, Ken Williamson, said: “We are deeply disappointed by the outcome of today’s hearing.

“The concern and motivation of Epping Forest District Council throughout has been the wellbeing of our local residents, where we had clarity and resolution, we now have doubt and confusion.”

The council could still be granted an injunction following a full hearing of the legal claim, which is due to be heard in October.

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Reform UK’s deputy leader Richard Tice: Epping residents should feel ‘angry and frustrated’

Reform UK leader Nigel Farage also criticised the ruling, claiming that “illegal migrants have more rights than the British people under (Keir) Starmer”.

Tory leader Kemi Badenoch echoed this in her own statement, saying: “Keir Starmer has shown that he puts the rights of illegal immigrants above the rights of British people who just want to feel safe in their towns and communities.”

She also urged Conservative councillors seeking similar injunctions against asylum hotels to “keep going” despite the ruling.

Focal point of protests

Epping Forest District Council had asked for the injunction after the Bell Hotel became the focal point of several protests and counter-protests. It claimed its owner, Somani Hotels, had breached planning rules.

Lord Justice Stephen Eyre, who gave the original High Court decision, had said that while the council had not “definitively established” that the company had breached planning rules, “the strength of the claimant’s case is such that it weighs in favour” of granting the injunction.

Anti-migration protesters in Epping in July
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Anti-migration protesters in Epping in July

Regular protests have been held outside the Bell Hotel since an asylum seeker housed there was accused of sexually assaulting a 14-year-old girl in July.

Hadush Gerberslasie Kebatu, 38, denies two counts of sexual assault, one count of attempted sexual assault, one count of inciting a girl to engage in sexual activity, and one count of harassment without violence.

His trial has been taking place this week and verdicts are expected at Chelmsford Magistrates’ Court on 4 September.

A view of an England flag outside the Bell Hotel in Epping, Essex, after a temporary injunction that would have blocked asylum seekers from being housed at the Bell Hotel in Epping, Essex, was overturned at the Court of Appeal. Picture date: Friday A
Image:
A view of an England flag outside the Bell Hotel in Epping, Essex, after a temporary injunction that would have blocked asylum seekers from being housed at the Bell Hotel in Epping, Essex, was overturned at the Court of Appeal. Picture date: Friday A

After the Court of Appeal ruling, a small number of protesters gathered outside the Bell Hotel carrying England and Union flags, with police officers guarding the entrance to the hotel, which is gated off with metal fencing.

An England flag has been attached to a drainpipe outside the hotel, while England flags have also been painted onto signs and a speed camera outside the hotel.

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Avalanche leads blockchain transaction growth amid US gov’t implementation

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Avalanche leads blockchain transaction growth amid US gov’t implementation

Avalanche leads blockchain transaction growth amid US gov’t implementation

Avalanche transaction growth topped all blockchain networks with 66%, as the smart-contract network saw more government implementation and renewed ETF applications.

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Unicoin says SEC distorted its filings in $100M fraud case

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Unicoin says SEC distorted its filings in 0M fraud case

Unicoin says SEC distorted its filings in 0M fraud case

Unicoin urged a New York judge to toss the SEC’s $100 million fraud case, arguing the regulator misquoted filings and relied on “snippets” taken out of context.

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