Zürcher Nachrichten - UK govt climbs down on welfare cuts in latest U-turn

EUR -
AED 4.307995
AFN 81.959148
ALL 97.942882
AMD 450.405226
ANG 2.098993
AOA 1075.520855
ARS 1456.098343
AUD 1.804525
AWG 2.114096
AZN 1.994512
BAM 1.956257
BBD 2.368453
BDT 143.463517
BGN 1.956023
BHD 0.442132
BIF 3494.616432
BMD 1.172869
BND 1.500351
BOB 8.105894
BRL 6.384626
BSD 1.173074
BTN 100.701526
BWP 15.650389
BYN 3.838897
BYR 22988.232639
BZD 2.35625
CAD 1.601805
CDF 3383.726817
CHF 0.935125
CLF 0.028438
CLP 1091.295412
CNY 8.40408
CNH 8.417998
COP 4674.27006
CRC 592.438409
CUC 1.172869
CUP 31.081029
CVE 110.290767
CZK 24.62199
DJF 208.888802
DKK 7.460426
DOP 70.206402
DZD 152.38028
EGP 58.256759
ERN 17.593035
ETB 162.799334
FJD 2.639305
FKP 0.859309
GBP 0.861091
GEL 3.189983
GGP 0.859309
GHS 12.19985
GIP 0.859309
GMD 83.855656
GNF 10173.376761
GTQ 9.017107
GYD 245.417336
HKD 9.206928
HNL 30.64716
HRK 7.533286
HTG 153.455851
HUF 399.690312
IDR 19061.173969
ILS 3.912814
IMP 0.859309
INR 100.779297
IQD 1536.659003
IRR 49407.106839
ISK 142.409435
JEP 0.859309
JMD 187.22374
JOD 0.83155
JPY 170.710497
KES 151.557942
KGS 102.567138
KHR 4712.100867
KMF 490.259557
KPW 1055.582598
KRW 1603.65202
KWD 0.358159
KYD 0.977512
KZT 609.362363
LAK 25277.905565
LBP 105104.054995
LKR 352.932454
LRD 235.190936
LSL 20.827966
LTL 3.463177
LVL 0.709457
LYD 6.318476
MAD 10.558667
MDL 19.789286
MGA 5144.201817
MKD 61.534917
MMK 2462.48681
MNT 4203.093738
MOP 9.484916
MRU 46.511866
MUR 52.755579
MVR 18.067341
MWK 2033.675119
MXN 21.971414
MYR 4.967074
MZN 75.017239
NAD 20.827966
NGN 1794.864994
NIO 43.170086
NOK 11.875065
NPR 161.122642
NZD 1.955225
OMR 0.450968
PAB 1.173074
PEN 4.162472
PGK 4.918149
PHP 66.417249
PKR 333.289065
PLN 4.249311
PYG 9348.183975
QAR 4.288202
RON 5.065267
RSD 117.122286
RUB 92.390759
RWF 1693.895737
SAR 4.398828
SBD 9.77812
SCR 17.238627
SDG 704.312762
SEK 11.163303
SGD 1.499935
SHP 0.921691
SLE 26.330642
SLL 24594.481049
SOS 670.356612
SRD 43.847688
STD 24276.020539
SVC 10.264398
SYP 15249.556715
SZL 20.821865
THB 38.209138
TJS 11.290438
TMT 4.11677
TND 3.421199
TOP 2.746973
TRY 46.905023
TTD 7.950858
TWD 34.06126
TZS 3096.599392
UAH 49.077966
UGX 4207.983092
USD 1.172869
UYU 47.080999
UZS 14730.441408
VES 128.398079
VND 30664.660324
VUV 138.901022
WST 3.040086
XAF 656.099094
XAG 0.032342
XAU 0.000355
XCD 3.169737
XDR 0.812913
XOF 656.110284
XPF 119.331742
YER 284.010358
ZAR 20.818144
ZMK 10557.215538
ZMW 28.416154
ZWL 377.663343
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

UK govt climbs down on welfare cuts in latest U-turn
UK govt climbs down on welfare cuts in latest U-turn / Photo: Eddie MULHOLLAND - AFP

UK govt climbs down on welfare cuts in latest U-turn

The UK government backed down Friday on controversial plans to slash disability and sickness benefits after a major rebellion by MPs, in a blow to Prime Minister Keir Starmer's authority.

Text size:

The climbdown is the third U-turn that Starmer has been forced into in less than a month, leading to questions about his political acumen and direction of the ruling Labour party.

Only days after Starmer insisted he would plough ahead with the reforms, the government confirmed concessions had been made to 126 rebel MPs who had threatened to scupper the proposed changes.

Tue turnaround comes just before Starmer marks the first anniversary of what has been a rocky return to power for Labour after 14 years in opposition to the Conservatives.

A spokesperson for Number 10 said the government had "listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the system".

It said a revised package of measures would preserve the welfare system for those "who need it, by putting it on a sustainable footing".

The backtrack means the Universal Credit and Personal Independence Payment (Pip) Bill, which contains the welfare reforms, will likely make it through a parliamentary vote due on Tuesday.

"It's always best to concede and then get it through in some way, shape or form. This is sort of damage limitation," political scientist Steven Fielding told AFP.

The concessions, due to be set out in parliament later on Friday, include a "staggered approach" to the reforms, care minister Stephen Kinnock said.

This means that the narrower eligibility criteria proposed will only apply to new claimants, not those already receiving the benefit payments.

Starmer's government had hoped to make savings of £5.0 billion ($6.9 billion) as a result of the changes that have now been partly abandoned, meaning finance minister Rachel Reeves will need to find them elsewhere.

- 'Unforced errors' -

It has been a bumpy 12 months in office for Starmer during which Reeves has struggled to generate growth from a sluggish UK economy.

On June 9, the government declared it had reversed a policy to scrap a winter heating benefit for millions of pensioners, following widespread criticism, including from its own MPs.

Less than a week later Starmer announced a national enquiry focused on a UK child sex exploitation scandal that had attracted the attention of US billionaire Elon Musk.

Starmer had previously resisted calls for an enquiry into the so-called "grooming gangs" -- that saw girls as young as 10 raped by groups of men mostly of South Asian origin -- in favour of a series of local probes.

The prime minister has a massive majority of 165 MPs, meaning he should be able to force whatever legislation he wants through parliament.

But many of his own MPs complain of a disconnect between Starmer's leadership, which is focused on combatting the rise of the far-right Reform UK party, and Labour's traditional centre-left principles.

"Labour is meant to stand for fairness, and those two flagship mistakes are all about being unfair," Fielding said of winter fuel and the disability cuts.

The furores are also overshadowing Labour's tightening of employment rights, and investment in housing and green industries, he added.

A YouGov poll of more than 10,000 Britons released this week found that while Labour is losing voters to Reform, it is also forfeiting supporters to the Liberal Democrats and the Greens on the left.

"They've been making so many unforced errors," said Fielding, a politics professor at Nottingham University.

"I think there is now being a very reluctant recalibration of things."

F.Carpenteri--NZN