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Kate Whannel and Jack Fenwick, both political journalists, reported on Sir Keir Starmer’s welfare reforms that have received mixed reactions within the government. Initially intended to reduce the welfare bill by making it harder for individuals to claim Personal Independence Payment (PIP), a benefit for millions with long-term health conditions, the government faced backlash from Labour MPs and a likely defeat in the Commons. To appease the dissent, the stricter criteria will now only apply to new claimants, a compromise that Sir Keir believes strikes “the right balance.”
The government’s aim to save £5bn annually by 2030 through the Universal Credit and Personal Independence Payment Bill has caused unrest among its own MPs. Approximately 120 MPs expressed discontent with the proposed changes, leading to the concessions made to avoid defeat. Despite some Labour MPs stating they will still vote against the bill, Dame Meg Hillier, a key figure opposing the plans, acknowledged the government’s introduction of “reassuring measures” and pledged her support.
Several backbench Labour MPs have raised concerns over the potential creation of a “two-tier” system where individuals with the same conditions could be treated differently based on their claimant status. While the Institute for Fiscal Studies and Resolution Foundation think tanks estimate a £3bn cost for the government’s U-turn, Chancellor Rachel Reeves may need to consider tax increases, spending cuts, or additional borrowing to adhere to spending rules. Conservative leader Kemi Badenoch criticized the concessions, labeling them as “the worst of all worlds,” while other parties like the Liberal Democrats, Reform UK, and the Green Party condemned the changes for various reasons
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