Fri, 27 Jun 2025

Fri, 27 Jun 2025 The benefits U-turn raises deeper questions about the credibility of Labour's long-term plan

The Government is boxed in from this week's events - and lacks the Houdini skills to escape, says the BBC's Faisal Islam
Background: The government had planned significant cuts to benefits for people with disabilities and long-term health conditions, including a freeze on higher rate payments for existing claimants and a reduction in payments for future claimants. U-turn: However, after pressure from opposition parties and disability charities, the government announced a U-turn on these plans. Instead, they will:
* Introduce a new four-point threshold for disability benefits
* Raise universal credit payments by inflation
* Spare the most severe cases of universal credit claimants from benefit cuts Additional spending: The government has also brought forward £1 billion in funding to help people with disabilities and long-term health conditions find work. This was originally due to be spent in 2029. Consequences: The U-turn is estimated to cost around £3 billion, which the Chancellor will need to fund either through increased taxes or reduced spending elsewhere. The Institute for Fiscal Studies and Resolution Foundation think tanks have criticized the government's handling of the welfare policy changes. Questions and doubts: The article raises several questions about the government's approach:
* Is Britain really fundamentally sicker than it was a decade ago?
* Can employers cope with supporting sick workers back into the workforce?
* Should support for disability be reformed to reflect changing needs and circumstances? The article concludes that the government has created significant challenges for itself, both in terms of budget arithmetic and political credibility. The Prime Minister will spend his anniversary marking a year in office grappling with crises, including this one. Overall: The article suggests that the UK's welfare policy is at an inflection point, with fundamental questions about how to support people with disabilities and long-term health conditions. The government must now consider whether to pursue more radical reform or continue with incremental changes.
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