Welfare reforms to PIP disability benefit trigger intense row within Labour

Published

1 day ago

March 17, 2025

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Labour faces a major challenge from its own backbenchers ahead of an announcement to restrict some sickness and disability benefits.

The plans are likely to be opposed by those in the party who are concerned about attempts to slash the ballooning welfare bill and encourage adults back to work.

Work and Pensions Secretary Liz Kendall is expected to set out the reforms on Tuesday, but details of where those cuts could fall is proving highly divisive within Labour.

Total welfare spending in 2023-23 was about £296bn, by the end of the decade it is forecast to reach almost £378bn.

Explainer: Where could welfare cuts be made?

The chancellor needs to find savings to meet her strict fiscal rules and Rachel Reeves has previously insisted “we do need to get a grip” on the welfare budget.

One proposal reportedly under consideration is to save around £5bn by freezing or tightening the rules around the personal independence payment (PIP).

But Labour’s Mayor of Greater Manchester Andy Burnham, a former Labour health secretary, has “urged great caution on how changes are made” although, writing in The Times, he accepts “the benefits system needs a radical overhaul”.

“I would share concerns about changing support and eligibility to benefits while leaving the current top-down system broadly in place. It would trap too many people in poverty,” he added.

Health Secretary Wes Streeting argued on Sunday Morning With Trevor Phillips that the current system is “unsustainable” and welfare reforms are needed. He also said mental health conditions are often overdiagnosed.

PIP is a payment of up to £9,000 a year for people with long-term physical and mental health conditions.

Campaigner Steve Morris is one of those 3.6 million PIP claimants and says freezing it at the current level would make his life much harder.

“I’m deafblind. PIP makes a huge difference to my life. It enables me to, afford some of the additional costs that are associated with my disability.

“For so many disabled people benefits are a lifeline. So to hear that lifeline might be taken away or severely restricted is hugely concerning.”

Liz Kendall told The Sunday Times it was an “absolute principle” to protect welfare payments for people unable to work. “For those who absolutely cannot work, this is not about that,” she said.

But she said the number of people on PIP is set to more than double this decade, partly driven by younger people.

Sky’s political correspondent Liz Bates said the government had been expected to announce a detailed plan over welfare spending last week.

“This particular issue of PIPs stopped that plan being announced because of the strength of backlash… from the backbenches all the way up to cabinet level.”

She added that talks were going on behind the scenes about whether the policy could be softened in some way, although it was unlikely reforms could be avoided completely ahead of the spring statement on 26 March.

“Could there be a bit of backtracking from Number 10 and from the department? This is what we’re going to find out on Tuesday. There is, of course, a lot of pressure coming from the chancellor.”

Labour is also aiming to tackle economic inactivity – especially among those under 35 – with an increasing proportion out of work due to long-term sickness.

A recent PwC report warns “a significant proportion of working adults are close to becoming economically inactive” and ill-health “is a major driver”.

The poll of 4,000 people shows 10% of the workforce are currently actively considering leaving work, and not just their current role.

That rises to 37% of those aged 18-24, who say they have either seriously considered leaving work in the last year, or are actively considering doing so now.

While the factors are complex and vary by age, the report reflects mental health is a major concern with 42% of 18-24 year-olds citing it as the biggest reason to leave work.

On Sunday, Ms Kendall teased one policy announcement to attract people back to work, effectively giving disabled people the right to try employment without the risk of losing their benefits.

The so-called “right to try guarantee” aims to prevent those people who receive health-related benefits from having their entitlements automatically re-assessed if they enter employment.

The Conservatives support welfare reform but claim Labour is “divided” over the issue and “cannot deliver the decisive change we need”.

Shadow work and pensions secretary Helen Whately said: “The government’s dithering and delay is costing taxpayers millions every day and failing the people who rely on the welfare system.”

Politics

LIBRA memecoin orchestrators named as defendants in US class-action suit

Published

43 mins ago

March 18, 2025

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LIBRA memecoin orchestrators named as defendants in US class-action suit

The Libra token scandal is set to be reviewed by the Supreme Court of New York after a newly filed class-action lawsuit accused its creators of misleading investors and siphoning over $100 million from one-sided liquidity pools.

Burwick Law filed the suit on behalf of its clients against Kelsier Ventures, KIP Protocol and Meteora on March 17 for launching the Libra (LIBRA) token in a “deceptive, manipulative and fundamentally unfair” manner. The token was then promoted by Argentine President Javier Milei on X as an economic initiative to stimulate private-sector funding in the country.

The law firm slammed the two crypto infrastructure and launchpad firms behind LIBRA — KIP and Meteora — claiming that they used a “predatory” one-sided liquidity pool to artificially inflate the memecoin’s price, allowing insiders to profit while “everyday buyers bore the losses.”

Within hours, the insiders “rapidly siphoned approximately $107 million from the liquidity pools,” causing a 94% crash in LIBRA’s market value, Burwick Law said in a March 17 filing shared on X.

President Milei was mentioned in the lawsuit but wasn’t named a defendant.

Burwick accused the defendants of leveraging Milei’s influence to aggressively promote the token, deliberately creating a false sense of legitimacy and misleading investors about its economic potential.

Approximately 85% of LIBRA’s tokens were withheld at launch and the “predatory infrastructure techniques” allegedly used by the defendants weren’t disclosed to investors, Burwick said.

“These tactics, combined with omissions about the true liquidity structures, deprived investors of material information.”

Burwick is seeking compensatory and punitive damages, the disgorgement of “unjustly obtained” profits and injunctive relief to prevent further fraudulent token offerings.

Data from blockchain research firm Nansen found that of the 15,430 largest Libra wallets it examined, over 86% of those sold at a loss, combining for $251 million in losses.

Only 2,101 profitable wallets were able to take home a combined $180 million in profit, Nansen noted in a Feb. 19 report.

The venture capital firm behind the LIBRA token, Kelsier Ventures, and its CEO, Hayden Davis, were apparently two of the biggest winners from the token launch. They claim to have netted around $100 million.

Davis, who is now facing a potential Interpol red notice following an Argentine lawyer’s request, said on Feb. 17 that he didn’t directly own the tokens and wouldn’t sell them.

Meanwhile, Milei has distanced himself from the memecoin, arguing he didn’t “promote” the LIBRA token — as fraud lawsuits filed against him have alleged — and instead merely “spread the word” about it.

Argentina’s opposition party called for Milei’s impeachment but has had limited success thus far.

Magazine: Meet lawyer Max Burwick — ‘The ambulance chaser of crypto’

Politics

Paul Atkins closes in on SEC chair role amid setbacks: Report

Published

3 hours ago

March 18, 2025

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Paul Atkins closes in on SEC chair role amid setbacks: Report

Paul Atkins could move one step closer to becoming the US Securities and Exchange Commission’s new crypto-friendly chair, with a Senate committee hearing reportedly in the works for March 27.

President Donald Trump nominated Atkins to lead the SEC on Dec. 4, but his marriage into a billionaire family has reportedly caused headaches with financial disclosures — delaying his potential start date.

While it isn’t clear whether the White House has produced those papers to the Senate, Senate Banking, House and Urban Affairs Chair Tim Scott is reportedly eyeing a March 27 hearing to review Atkins’ standing, Semafor’s Eleanor Mueller said in a March 17 X post.

“No clarity yet on whether the committee has Atkins’ paperwork in hand, but either way, this is the most momentum we’ve seen so far.”

Atkins would, however, need to be voted in by the Senate at a later date.

Mueller also said the Senate banking committee is also planning to hold a bipartisan meeting on Atkins’ nomination on March 21.

It follows an earlier March 3 Semafor report, where Mueller said financial disclosures had held Atkins back from scheduling a Senate hearing to review his standing.

His wife’s family is tied to TAMKO Building Products LLC — a manufacturer of residential roofing shingles that reportedly turned over $1.2 billion in revenue in 2023, Forbes said on Dec. 14, 2024.

“It’s a lot to go through,” one former Senate Banking Committee staffer reportedly told Mueller on March 3.

“But he got named so early on, so I think that’s why people are starting to be like, ‘What the hell’s taking so long?’”

Atkins previously served as an SEC commissioner between 2002 and 2008 and worked as a corporate lawyer at Davis Polk & Wardwell LLP in New York before that. He is expected to regulate the crypto arena with a more collaborative approach than former SEC Chair Gary Gensler.

It’s been almost four months since Atkins was chosen by Trump to lead the SEC on Dec. 4, and over two months since Trump was inaugurated on Jan. 20.

A late start for an SEC chair wouldn’t be too unusual, however.

The two most recent SEC chairs, Gary Gensler and Jay Clayton, started on April 17, 2021, and May 4, 2017 — months after presidential transitions occurred in those years.

Meanwhile, Mark Uyeda has been serving as the SEC’s acting chair since Gensler left on Jan. 20.

Since then, the Uyeda-led SEC has established a Crypto Task Force led by SEC Commissioner Hester Peirce and canceled a controversial rule that asked financial firms holding crypto to record them as liabilities on their balance sheets.

The SEC has dropped several investigations and lawsuits that the Gensler-led commission filed against the likes of Coinbase, Consensys, Robinhood, Gemini, Uniswap and OpenSea over the last month.

The SEC is also looking to abandon a rule requiring crypto firms to register as exchanges and may even axe the Biden administration’s proposed crypto custody rules, Uyeda said on March 17.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Politics

SEC could axe proposed Biden-era crypto custody rule, says acting chief

Published

5 hours ago

March 18, 2025

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SEC could axe proposed Biden-era crypto custody rule, says acting chief

The US Securities and Exchange Commission could change or scrap a rule proposed under the Biden administration that would tighten crypto custody standards for investment advisers, according to the agency’s acting chair, Mark Uyeda.

In prepared remarks to an investment industry conference in San Diego on March 17, Uyeda said the rule proposed in February 2023 had seen commenters express “significant concern” over its “broad scope.”

“Given such concern, there may be significant challenges to proceeding with the original proposal. As such, I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives, including its withdrawal,” Uyeda said.

The rule was floated under the Biden administration during Gary Gensler’s tenure leading the regulator. It aimed to expand custody rules for investment advisers to any and all assets held for a client, including crypto, and upped the requirements to protect them.

This meant that investment advisers would have to custody their clients’ crypto with a qualified custodian. Gensler said at the time that investment advisers “cannot rely on” crypto platforms as qualified custodians due to how they operate.

The proposal caused friction with Uyeda and Commissioner Hester Peirce, along with industry advocacy bodies who claimed the rule was unlawful and dangerous.

“How could an adviser seeking to comply with this rule possibly invest client funds in crypto assets after reading this release?” Uyeda remarked at the time. He did, however, support the proposal despite disagreeing “with a number of provisions.”

Peirce, who was the sole commissioner of the five to vote against the rule, said at the time that the proposed rule “would expand the reach of the custody requirements to crypto assets while likely shrinking the ranks of qualified crypto custodians.”

Uyeda’s latest remarks come days after he said on March 10 that he had asked SEC staff “for options on abandoning” part of a proposal pushing for some crypto firms to register with the regulator as exchanges.

The Trump-era SEC has also killed a rule that asked financial firms holding crypto to record them as liabilities on their balance sheets, called SAB 121.

In December, President Donald Trump picked former SEC Commissioner Paul Atkins to take over from Uyeda to chair the agency. This is now a step closer, with a Senate hearing reportedly slated for March 27.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered