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The government can’t “shrug its shoulders” and pretend the welfare system is “progressive”, Sir Keir Starmer has said, as he again defended his benefit cuts.

The prime minister told Sky News political correspondent Serena Barker-Singh he understands why some of his backbenchers are uncomfortable, noting his late mother had a disability and he recently lost his brother to cancer.

Politics live: Protesters get into House of Lords

However, he said it is “morally indefensible that a million young people are going essentially from education on to benefits”.

“All the evidence shows if young people are in that position and so early in their lives, they’re going to find it really difficult ever to get out of that,” the prime minister said.

He said it was indefensible to have a system that “makes it really difficult” for the unemployed to get into work.

“There aren’t many people who genuinely argue the status quo is working,” Sir Keir said.

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Benefits cuts explained

‘We can’t just shrug our shoulders’

Sir Keir said there were two million people on benefits because of sickness – a figure he said would double by 2030 without action from the government.

“We can’t just shrug our shoulders and pretend that it’s progressive to watch millions more people go on to disability benefits when they could and many of them want to be in work,” he added.

“That’s why it’s so vital that we carry out these reforms.”

The £5bn package of savings announced on Tuesday includes making it harder for people to claim a key disability benefit called personal independence payment (PIP).

The government is also delaying access to the universal credit health top-up until claimants are 22, using the cash to invest in training opportunities for young people.

This will go alongside a £1bn investment into “tailored” support to help the disabled and long-term sick get jobs, as well as several other reforms.

Read more:
What is PIP?
Key welfare changes explained

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Govt ‘rushed’ welfare reforms

Labour backlash

The timing of the announcement has attracted criticism given Chancellor Rachel Reeves’ spring statement next Wednesday, when she is expected to announce more spending cuts.

At PMQs, veteran Labour left-winger Diane Abbott challenged ministers’ arguments of a “moral” need for change, saying: “This is about the Treasury’s wish to balance the country’s books on the back of the most vulnerable and poor people in this society.”

It echoes an argument the Tories are making, which is that while they broadly support reform, the cuts are only being made because of the damage they say Ms Reeves’ October budget has done.

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What to expect from the spring statement

Ministers insist they would have changed things regardless of the fiscal situation, but that hasn’t quelled discontent, with Labour MP Chris Webb becoming the first of the 2024 cohort to break ranks.

It has led to questions about what the Starmer government stands for, following rows over cuts to the aid budget and the winter fuel payment, and the refusal to drop the two-child benefit cap.

Earlier on Thursday, defence minister Luke Pollard denied Labour was now a centre-right party.

It came after Health Secretary Wes Streeting rejected accusations Labour was “turning into the Tories”.

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Crypto’s path to legitimacy runs through the CARF regulation

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Crypto’s path to legitimacy runs through the CARF regulation

Crypto’s path to legitimacy runs through the CARF regulation

The CARF regulation, which brings crypto under global tax reporting standards akin to traditional finance, marks a crucial turning point.

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Tokenized equity still in regulatory grey zone — Attorneys

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Tokenized equity still in regulatory grey zone — Attorneys

Tokenized equity still in regulatory grey zone — Attorneys

The nascent real-world tokenized assets track prices but do not provide investors the same legal rights as holding the underlying instruments.

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

Rachel Reeves has hinted that taxes are likely to be raised this autumn after a major U-turn on the government’s controversial welfare bill.

Sir Keir Starmer’s Universal Credit and Personal Independent Payment Bill passed through the House of Commons on Tuesday after multiple concessions and threats of a major rebellion.

MPs ended up voting for only one part of the plan: a cut to universal credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

Initially aimed at saving £5.5bn, it now leaves the government with an estimated £5.5bn black hole – close to breaching Ms Reeves’s fiscal rules set out last year.

Read more:
Yet another fiscal ‘black hole’? Here’s why this one matters

Success or failure: One year of Keir in nine charts

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Rachel Reeves’s fiscal dilemma

In an interview with The Guardian, the chancellor did not rule out tax rises later in the year, saying there were “costs” to watering down the welfare bill.

“I’m not going to [rule out tax rises], because it would be irresponsible for a chancellor to do that,” Ms Reeves told the outlet.

More on Rachel Reeves

“We took the decisions last year to draw a line under unfunded commitments and economic mismanagement.

“So we’ll never have to do something like that again. But there are costs to what happened.”

Meanwhile, The Times reported that, ahead of the Commons vote on the welfare bill, Ms Reeves told cabinet ministers the decision to offer concessions would mean taxes would have to be raised.

The outlet reported that the chancellor said the tax rises would be smaller than those announced in the 2024 budget, but that she is expected to have to raise tens of billions more.

It comes after Ms Reeves said she was “totally” up to continuing as chancellor after appearing tearful at Prime Minister’s Questions.

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Why was the chancellor crying at PMQs?

Criticising Sir Keir for the U-turns on benefit reform during PMQs, Conservative leader Kemi Badenoch said the chancellor looked “absolutely miserable”, and questioned whether she would remain in post until the next election.

Sir Keir did not explicitly say that she would, and Ms Badenoch interjected to say: “How awful for the chancellor that he couldn’t confirm that she would stay in place.”

In her first comments after the incident, Ms Reeves said she was having a “tough day” before adding: “People saw I was upset, but that was yesterday.

“Today’s a new day and I’m just cracking on with the job.”

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Reeves is ‘totally’ up for the job

Sir Keir also told Sky News’ political editor Beth Rigby on Thursday that he “didn’t appreciate” that Ms Reeves was crying in the Commons.

“In PMQs, it is bang, bang, bang,” he said. “That’s what it was yesterday.

“And therefore, I was probably the last to appreciate anything else going on in the chamber, and that’s just a straightforward human explanation, common sense explanation.”

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