Connect with us

Published

on

Liz Kendall has defended the government’s welfare U-turn saying: “Sometimes there is strength in listening.”

The embattled work and pensions secretary said “positive changes” have come about as a result of crisis talks with senior Labour backbenchers, who were poised to vote against planned cuts to disability benefits next week.

Politics latest: Welfare changes ‘could cost £3.2bn per year by 2030’

However, she would not guarantee the bill will pass, amid criticism from some MPs the changes don’t go far enough.

The welfare concessions follow a U-turn over cuts to winter fuel and the decision to launch a grooming inquiry.

Asked how the government can be trusted, Ms Kendall said: “Sometimes there’s strength in listening.

“I really believe that to be the case, that you end up in the right position when you talk to all of those with knowledge and experience and actually, if you want decisions to be the right ones and to last for generations to come, I believe that’s how you make the right changes.”

The concessions include exempting existing personal independence claimants (pip) from the stricter new criteria, while the universal credit health top-up will only be cut and frozen for new applications.

This has led to criticism of a two-tier system, but Ms Kendall said it is “very common in the welfare system that there are protections for existing claimants”.

Please use Chrome browser for a more accessible video player

“No leadership” in Labour says Tory MP

She said she “hopes” the changes have done enough to get the bill over the line next week.

The cabinet minister also said government had “more to do” and would “talk to people over the coming days”, with many MPs still on the fence about whether they will back the new proposals.

The concessions were hashed out last night after a frantic ring around of MPs earlier in the week failed to bring critics onside.

The government had planned to tighten pip criteria for new and existing claimants, with some 370,000 people set to lose out.

It was part of a package of measures aimed at shaving £5bn off the welfare bill by 2030 and getting more people into work amid record levels of economic inactivity.

However, MPs were concerned that disabled people had not been consulted, while the government’s own impact assessment said the changes could plunge 250,000 people into poverty, including 50,000 children.

Please use Chrome browser for a more accessible video player

Welfare reforms ‘Step in the right direction’

Ministers insisted this would be offset by measures to get people back into work, but many rebel MPs said while they agreed with that in principle it wasn’t clear how this will be achieved.

By Thursday, 127 Labour MPs had backed an amendment calling for the changes to be paused for further consultation – meaning the bill was at risk of being defeated when it goes to a vote on Tuesday.

Dame Meg Hillier, the chair of the Treasury select committee who had tabled the amendment, said last night that the government had offered a “good deal”.

Read more:
Beth Rigby analysis: Welfare bill a humiliating blow for Starmer
What are the concessions to the welfare bill – and will MPs back it?

Ultimately, individual MPs will decide if they want to support it.

Many MPs on the left of the party have said they won’t, with the likes of Ian Byrne and Nadia Whittome saying no concessions are enough while cuts are still going ahead and the bill should be pulled.

Others have told Sky News they are undecided and want to see more details first.

None of the rebels have publicly said they will now support the government, but two have told Sky News they expect they will vote for the new measures.

It’s not clear how much the new package will save, with those details expected to by set out in the autumn budget.

The prime minister’s spokesperson said on Friday that the changes will be fully funded but refused to be drawn on whether that meant tax rises.

He rejected the suggestion that Sir Keir is at the mercy of his backbenchers, saying he has “listened to MPs who support principles but worried about pace of change”.

Continue Reading

Politics

Trump sidesteps question on crypto divesting to pass key bills

Published

on

By

Trump sidesteps question on crypto divesting to pass key bills

Trump sidesteps question on crypto divesting to pass key bills

Several Democratic lawmakers have said that they will not vote to pass crypto regulations if potential conflicts of interest are not addressed.

Continue Reading

Politics

Anchorage ‘Safety Matrix’ faces backlash over stablecoin delistings

Published

on

By

Anchorage ‘Safety Matrix’ faces backlash over stablecoin delistings

Anchorage ‘Safety Matrix’ faces backlash over stablecoin delistings

Nick van Eck, co-founder and CEO of Agora, behind one of the stablecoins Anchorage said it would phase out, claimed inaccuracies and an inconsistently applied framework.

Continue Reading

Politics

Welfare concessions ‘common sense’, says PM – as he defends U-turn

Published

on

By

Welfare concessions 'common sense', says PM - as he defends U-turn

Sir Keir Starmer said changes to his welfare bill “strike the right balance” after making concessions to his backbench MPs.

The prime minister described the U-turn as “common sense” and said it means “we can now get on with the job”.

Politics Live: Starmer defends U-turn

Sir Keir faced a significant rebellion over plans to cut sickness and disability benefits as part of a package he said would shave £5bn off the welfare bill and get more people into work.

Speaking to reporters on Friday, he stood by his position that the welfare system needs reform as “it doesn’t work, and it traps people”.

He added: “We need to get it right. That’s why we’ve been talking to colleagues and having a constructive discussion.

“We’ve now arrived at a package that delivers on the principles with some adjustments, and that’s the right reform, and I’m really pleased now that we’re able to take this forward.

“For me, getting that package adjusted in that way is the right thing to do, it means it’s the right balance, it’s common sense that we can now get on with it.”

The concessions include exempting existing Personal Independence Payment claimants (PIP) from the stricter new criteria, while the universal credit health top-up will only be cut and frozen for new applications.

Analysis: Welfare bill U-turn a humiliating blow for Starmer

Please use Chrome browser for a more accessible video player

“No leadership” in Labour says MP

More money will also be front-loaded into helping people find jobs, though it is not clear how much beyond the £1bn already announced.

The changes came after 127 Labour MPs signed an amendment calling for the cuts to be delayed and consulted on with disabled people.

Rebels feared the reforms wouldn’t actually help people find work while pushing thousands of disabled people and children into poverty, as per the government’s own impact assessment.

The discontent threatened to derail the Universal Credit and Personal Independence Payment Bill when it comes before the Commons for a vote on Tuesday, on the week that marks a year of Starmer in government.

Asked what he would do about a “hole” in the public finances that the changes are said to leave, Sir Keir said the funding will be set out in the autumn budget “in the usual way”.

The concessions on PIP alone will protect an estimated 370,000 people currently receiving the allowance who were set to lose out following reassessment.

Economists at the Institute for Fiscal Studies and the Resolution Foundation have both suggested that the changes could reduce savings intended in the original package by up to £3bn.

Chancellor Rachel Reeves is also under pressure to find money to pay for the U-turn on cuts to winter fuel, which followed a drubbing at the local elections in May.

Please use Chrome browser for a more accessible video player

‘This week is going to haunt the prime minister,’ says Sky’s Ali Fortescue .

Asked about the series of U-turns, Work and Pensions Secretary Liz Kendall earlier said: “Sometimes there’s strength in listening.

“I really believe that to be the case, that you end up in the right position when you talk to all of those with knowledge and experience and actually, if you want decisions to be the right ones and to last for generations to come, I believe that’s how you make the right changes.”

However, she would not guarantee the bill will pass next week.

Some 83 Labour MPs would need to rebel for the government to be defeated.

Please use Chrome browser for a more accessible video player

Govt makes offer to rebels on welfare reforms

Last night Dame Meg Hillier, one of the leading rebel voices, hailed the concessions as “massive changes” to protect vulnerable people and involve disabled people in the design of future reforms.

However, not all the rebels have been satisfied with the changes, with several suggesting they would create a “two-tier system”. Sky News is aware of at least 20 MPs who currently intend to still vote against. Many others are undecided.

The concessions came after Downing Street publicly stuck to its guns while engaging in a frantic ring-around to get rebels onside, which further angered MPs.

Many have called for a reset in relations with Downing Street, as the fallout from the rebellion threatens to cause lasting damage.

Conservative leader Kemi Badenoch criticised the U-turn, saying the government’s failure to make “minor savings” on welfare showed they were unable to deal with major issues.

Continue Reading

Trending