Labour ploughs ahead with higher welfare spending Politics The Labour government is backing higher welfare spending projections for the next five years, with plans to partially lift the two-child benefit cap set to add to the strain on public finances. An official statement from the government confirmed that the government would ditch planned savings to disability payments, which are formally known as personal [...]
Reeves may need larger fiscal buffer to ‘build credibility’ Economics Chancellor Rachel Reeves may need to make her headroom larger than £9.9bn in the autumn to restore credibility and fund policy U-turns, an economics think tank has warned, prompting warnings that “unpopular tax hikes” are coming down the line. Proposed welfare reforms saved the government £4.8bn at the Spring Statement in a last minute rush [...]
Government announces concessions to welfare bill in ‘screeching U-turn’ Politics People who currently receive the personal independence payment (Pip) will continue to do so after the government made concessions to Labour rebels on controversial welfare reforms. A letter from Work and Pensions Secretary Liz Kendall to MPs said adjustments to universal credit would also see incomes protected. The announcement comes after crisis talks with backbenchers, [...]
Health Secretary declines to be drawn on benefit freeze ‘speculation’ March 16, 2025 A senior minister has declined to be drawn on whether the government will freeze personal independence payment (PIP) as uncertainty continues to surround Labour’s upcoming benefits reforms. Work and Pensions Secretary Liz Kendall is expected to announce reforms on Tuesday aimed at cutting a welfare bill that ministers have described as “unsustainable”. Ahead of the [...]