Minister to melt influence of deliberate incapacity profit cuts

Minister to melt influence of deliberate incapacity profit cuts

Joshua Nevett

Political reporter

PA Work and Pensions Secretary Liz Kendall leaves Downing Street, London, after a Cabinet meeting. Picture date: Tuesday March 18, 2025.PA

Work and Pensions Secretary Liz Kendall is making modifications to her bundle of welfare reforms in an try and reassure Labour MPs who’re contemplating rebelling in opposition to the plans.

Kendall has tried to melt the influence of deliberate advantages cuts price £5bn a 12 months by 2030 earlier than MPs vote on the federal government’s welfare modifications.

The welfare reform invoice will embody proposals to make it more durable for disabled individuals with much less extreme situations to assert private independence cost (Pip).

The BBC has been instructed anyone who loses Pip will obtain the cost for a transitional interval of 13 weeks, slightly than the standard 4 weeks, earlier than it’s eliminated.

Carer’s allowance will proceed to be paid through the 13-week transition, however shall be ended when Pip is taken away.

Advantages recipients with essentially the most extreme well being situations is not going to be reassessed and can obtain further revenue help by a common credit score cost.

A scheme to provide disabled individuals a proper to strive employment with out the chance of shedding their advantages can even be launched similtaneously the welfare reform invoice.

Kendall has described these additions as “non-negotiable” protections, which shall be added to the invoice earlier than it’s printed subsequent week.

The protections have been proposed within the authorities’s Pathways to Work inexperienced paper and consulted on earlier than Kendall determined so as to add them to the invoice.

Kendall instructed the Guardian newspaper: “After we set out our reforms we promised to guard these most in want, notably those that can by no means work.

“I do know from my 15 years as a constituency MP how essential that is. It’s one thing I take severely and can by no means compromise on.

“That’s the reason we’re placing further protections on the face of the Invoice to help essentially the most weak and assist individuals affected by the modifications.

“These protections shall be written into regulation, a transparent signal they’re non-negotiable.”

Labour discontent

The BBC understands the protections had been raised in discussions between ministers, Labour MPs and incapacity rights teams.

Dozens of Labour MPs have expressed issues concerning the plans to chop Pip funds and the sickness-related component of common credit score (UC).

Many have stated they’re ready to vote in opposition to the first laws the federal government must move to make the modifications to welfare funds.

The welfare bundle as an entire may push an additional 250,000 individuals, together with 50,000 kids, into relative poverty, in line with the federal government’s influence evaluation.

Neil Duncan-Jordan is one in every of 42 Labour MPs who wrote a letter that stated the welfare reforms have been “unattainable to help” if modifications weren’t made.

When requested what he product of the protections Kendall had added to the invoice, Duncan-Jordan stated: “Poverty delayed continues to be poverty.”

One other discontented Labour MP, Ian Byrne, stated: “After 14 weeks do the disabled and sick affected miraculously finish the necessity for the very important help being taken away? An absolute nonsense.”

And Labour MP Rachael Maskell stated Kendall had “simply restated the proposals in Pathways to Work with a three-month transition earlier than individuals lose their help”.

She added: “It can due to this fact not change the fabric information nor my intention to vote in opposition to.”

One other Labour MP stated the added protections is not going to cease dozens of his colleagues from opposing the invoice.

“The whips are pushing very laborious with MPs but it surely’s not working,” the Labour MP stated.

However one supportive Labour MP, Alex Ballinger, stated Kendall’s protections sounded smart.

“I welcome these steps on welfare reform,” he stated. “I do know many residing with well being challenges have been anxious concerning the modifications, and I hope these further protections present that the federal government is listening.

“I help reforms that present individuals who need to work further help to take action, whereas persevering with to guard essentially the most weak.”

Some Labour MPs used the federal government’s U-turn on winter gas funds to resume their requires the deliberate profit cuts to be reversed.

However on Thursday, Chancellor Rachel Reeves stated the federal government wouldn’t row again on the cuts.

“We’re not going to be altering that,” she instructed the BBC. “It’s important that we reform the best way the welfare state works.”

The Division for Work and Pensions (DWP) says it expects 3.2 million households – a mix of present and future recipients – to lose out financially, on account of the whole bundle of measures, with a median lack of £1,720 per 12 months.

This consists of 370,000 present Pip recipients who will not qualify and 430,000 future claimants who will get lower than they’d beforehand have been entitled to.

However ministers have burdened the figures don’t issue within the authorities’s plans to spend £1bn on serving to the long-term sick and disabled again into work, or its efforts to cut back poverty.

Ministers hope these efforts will enhance employment amongst advantages recipients, at a time when 2.8 million individuals are economically inactive because of long-term illness.

If nothing modifications, the well being and incapacity advantages invoice is forecast to achieve £70bn a 12 months by the top of the last decade, a stage of spending the federal government says is “unsustainable”.

The federal government is planning to place the welfare reforms in place by November 2026 and nobody will lose out on advantages funds till that occurs.

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