The federal government had been taking a look at freezing the non-public independence fee (PIP) subsequent 12 months so it didn’t rise with inflation as a part of a drive to chop down the ballooning welfare finances.
The proposal had been set to avoid wasting about £5bn as Chancellor Rachel Reeves searches for financial savings after dropping £9.9bn of fiscal headroom (the quantity she might improve spending or reduce taxes with out breaking her fiscal guidelines) because the October finances resulting from a poor economic system and geopolitical occasions.
Politics newest: Minister performs down degree of revolt
PIP is a fee of as much as £9,000 a 12 months for folks with long-term bodily and psychological well being circumstances and disabilities to assist with further dwelling prices.
Nonetheless, the federal government is predicted to make qualifying for PIP harder when Work and Pensions Secretary Liz Kendall reveals plans on Tuesday.
The federal government has described the system as “dysfunctional” as these “not fit for work” don’t obtain employment help or additional engagement after the evaluation, which might lock them out of future work altogether.
Explainer: Which advantages might be reduce?
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1:13
Will there be a backlash over advantages?
Sir Keir Starmer has made slicing the welfare finances a key mission as spending on illness advantages soared to £65bn final 12 months – a 25% improve because the 12 months earlier than the COVID pandemic – and is predicted to rise to £100bn earlier than the subsequent common election in 2029.
The variety of folks in England and Wales claiming both illness or incapacity profit has soared from 2.8 million to about 4 million since 2019.
Nonetheless, many Labour MPs are uncomfortable with slicing advantages for disabled folks.
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0:45
Streeting defends desirous to slash welfare advantages
Ms Kendall had been anticipated to announce welfare reduce plans final week however this was delayed by displeasure from backbenchers, with the federal government taking the bizarre step of asking all 404 Labour MPs to attend “welfare roundtables” in Downing Avenue final week.
Higher Manchester’s Labour mayor, Andy Burnham – a former well being secretary – agreed the advantages system “needs a radical overhaul” however wrote in The Occasions: “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.”
Will authorities observe by on powerful speak regardless of backbench considerations?
Mhari Aurora
@MhariAurora
Tomorrow, the federal government will publish its plans to chop the welfare finances, however it’s the Labour benches which might be prone to trigger essentially the most havoc.
This mini u-turn on freezing PIP will placate some Labour MPs nervous in regards to the unintended penalties of the welfare crackdown and the way it could have an effect on disabled folks.
His muted tone might be a sign the federal government’s efforts to steer backbenchers of the deserves of the plan – by inviting them to Downing Avenue to talk their minds and be reassured essentially the most weak could be protected – is taking impact.
Nonetheless, regardless of a comparatively understanding tone from Mr McDonnell, he additionally warned Reeves’s plans could end up to create extra issues than it would resolve in the long term.
Mr McDonnell accused the federal government of not understanding the world has modified, hinting the chancellor should observe Germany’s lead, break her fiscal guidelines and blame the coverage pivot on unprecedented world occasions.
Reynolds argued there’s dignity in work and that reforms have been wanted as “something has gone seriously wrong under the Tories”, arguing the cuts chime with Labour ideology.
And Well being Secretary Wes Streeting – the self-proclaimed Tory whisperer – has hardened his rhetoric even additional, claiming the over-diagnosing of psychological well being issues is partly responsible for the ballooning advantages invoice.
This hardening of the federal government’s language is a transparent try to speak powerful, however will the federal government have the ability to observe by on the motion the Treasury is determined to see whereas many Labour backbenchers stay unconvinced Starmer has his priorities in the precise order?
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3:01
Labour faces criticism over welfare reforms
“So this isn’t something that is any different, but we’re determined to strike the right balance here.”
She added there’ll “always be a safety net for the most vulnerable” and identified Labour created the welfare state in 1945, however it must be “more sustainable”.
