Unlock Editor Digest for FREE
Roela Khalaf, Ft Editor, selects his favorite stories in this weekly newsletter.
The Prime Minister of the UK Sir Keir Starmer is forced to make many concessions in his controversial reforms on a great rebellion by rebelting Labor MPs.
But the long term issue is how the state is Able to ballooning welfare bill Remain, with the number of benefits of disability benefits claiming to have many years over the next 10 years.
How big is the problem?
Without reform, the expenditure of health benefits and disability disability is expected to hit £ 66bn in 2029-30, according to financial studies.
These costs have been risen to exponentially since the pandemic, with a £ 16bn increase between 2019 and last year.
Without reforms, the tank estimates a similar size extent expected at the end of parliament.
At the same time, the Office for National Statistics estimates that the UK has 2.8mg people with long-term health conditions preventing them from working.
Welfare bill changes are designed to save almost £ 5.5bn by 2029-30, but concessions on Friday can take overall.
What do Starmer think about?
In March, Starmer unveiled plans to restrict the ability for disability benefits known as “personal freedom fees”.
On Friday, the government says not to implement greater analysis rules for current claims, claims only from November 2026.
It is a large concession, carrying approximately 370,000 additional people receiving the benefit, at the sum of £ 1.9bn of 2029-30, according to sourses.
This can escape an income earned in any household dependent on welfare, but appears to be unfair to the same appropriate claimants fighting. Campaigners accused ministers Friday to make a tier system.
The government also swore to freeze the universal credit element – paid to those who claimed very sick work – until 2029-30.
MPs have now been told that it is currently being paid for inflation for claimant claimants. The payment will be paid and then frozen for new claimants.
The concessions also have now become restricting behaviors to qualify for PIP.
Ministers say that from November 2026, claimants should score at least four points in at least one category that must receive any PIP rate. This MP has been told it will now submit.
The Starmer also brings a £ 1bn package support work To this year to attract MPs to support welfare reforms.
What will happen next?
This week U-Tross means the government “now makes a small tooth” on the welfare bill, according to Tom Waters, Associate Director of IFS.
“The package even though it stands one day ago just slowly, never ceases to be raised, these spending trends”.
He added: “Of course there are no available options here.
Given the concessions made to those present claims, experts hold the government still able to commit at least start welfare bill.
“The concessions they make today have not changed the long-term policy, representative executive and chief economist primarily, everyone can be a new claim… They have been more slowly than in the case when they first published the green paper.”
He added that the most important long-term change, which is not possible next week on the bill, refers to the PIP qualification again. “The next week’s steps slowly grow up spending the disability benefits, but again try to try with a larger impact.”
