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Revised UK welfare reforms to push 150,000 into poverty


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Watering down the federal government’s flagship welfare adjustments will price taxpayers £2.5bn, work and pensions secretary Liz Kendall admitted on Monday, as official estimates confirmed the revised measures will nonetheless push 150,000 individuals into poverty.

Setting out the main points of concessions provided to insurgent Labour MPs to stop them voting down the invoice — together with that tighter eligibility standards for incapacity advantages will solely apply to new claimants — Kendall admitted the unique tempo of change had been too quick.

“There have additionally been actual considerations . . . we have now listened fastidiously and we’re making constructive adjustments in consequence,” she informed the Home of Commons.

However she defended the try and familiarize yourself with Britain’s spiralling welfare price range to make it “sustainable” for future generations.

Talks are nonetheless ongoing between whips and Labour MPs, though additional concessions earlier than Tuesday’s vote are unlikely, in accordance with individuals briefed on the discussions. 

Ministers had been braced for a rebel of 126 MPs, which is now anticipated to shrink to round 50 — not sufficient to beat the federal government’s majority.

On Monday night, Labour MPs tabled one other reasoned modification designed to kill the invoice, which shortly garnered 38 signatures from Labour MPs and a handful from members of different events.

Rachel Maskell, MP for York Central, mentioned the modification had been tabled on behalf of deaf and disabled individuals’s organisations, “giving them a voice on this debate as their company has not been heard”.

Requested if she thought it was attainable the modification would appeal to the votes of 83 Labour MPs most likely essential to defeat the federal government, Maskell mentioned: “I believe we’re getting shut, and extra are contemplating. Even loyal MPs who had been going to vote for [the government’s reforms] are considering of abstaining.”

Many MPs usually are not anticipated to resolve till shortly earlier than the vote round 7pm tomorrow, establishing a doubtlessly frantic day of lobbying between the opposing camps inside Labour. 

The Conservatives mentioned they’d vote towards the invoice, regardless that Tory chief Kemi Badenoch described the welfare price range as “uncontrolled”.

Ministers nonetheless anticipate to see the largest rebel of Starmer’s premiership, eclipsing the 16 who opposed the planning and infrastructure invoice earlier this month. 

Tony Blair’s greatest rebel in his first yr concerned 47 backbenchers, in accordance with Philip Cowley, politics professor at Queen Mary College. 

Some Labour MPs additionally remained extremely vital. Marie Tidball, MP for Penistone and Stocksbridge and a incapacity rights campaigner, complained that the individuals most affected had not been correctly consulted on the reforms.

“Having no public session on these plans excludes the voices of disabled individuals . . . This makes disabled individuals worse off,” she mentioned.

Modelling by the Division for Work and Pensions printed on Monday confirmed round 150,000 individuals will nonetheless be pushed into poverty by 2030 due to the deliberate welfare cuts — in contrast with 250,000 beneath the unique proposals.

Nevertheless, the modelling didn’t embrace any “potential constructive influence” from further funding and measures to help individuals with disabilities again into work.

Liz Kendall speaking in the House of Commons on Monday
Liz Kendall talking within the Home of Commons on Monday © Home of Commons

Some MPs have welcomed Starmer’s concessions however critics say they threat making a “two-tier” welfare system the place individuals who change into disabled after the reforms take impact might lose out.

Shadow work and pensions secretary Helen Whately informed the Commons that the adjustments imply that “two individuals recognized with Parkinsons every week aside will now get totally different ranges of help”.

The brand new particulars got here alongside a written assertion by Sir Stephen Timms, disabilities minister, setting out the phrases of reference for a complete evaluate of the non-public independence fee, or “Pip”, which won’t be accomplished till after the brand new adjustments are legislation.

Sarah Owen, Labour chair of the Commons girls and equalities committee, mentioned there was no “logic” to the timing, which she warned would result in much more discrepancies within the system.

Labour officers admitted that MPs wanted to be “reassured” on that time and urged that suggestions made by the Timms panel may very well be utilized retrospectively.

Downing Road mentioned it was assured that making a two-tier advantages system for brand spanking new and present claimants was authorized. Kendall mentioned it was widespread for present claimants to be stored on previous welfare measures as soon as they had been reformed.

Some individuals nonetheless obtain the “extreme disablement allowance” that was abolished in 2001, whereas many others are on the incapacity residing allowance that was changed by Pip in 2013, she mentioned.

The prime minister has argued the reforms are important to cease the welfare price range rising ever increased, however the adjustments will cut back the financial savings for the federal government from nearly £5bn to about £2bn-£2.5bn. 

Mixed with a earlier U-turn on winter gas funds for pensioners, chancellor Rachel Reeves has been left with a gap in her price range of near £4bn — for which taxes might have to rise.

Altering the precise textual content of the welfare invoice at this stage shouldn’t be attainable, so MPs are being requested to take the ministerial assertion as a promise that adjustments shall be enacted later.