A plan to freeze disability benefits to help bring down the welfare bill has been scrapped following backlash from MPs, Sky News understands. Meanwhile, Work and Pensions Secretary Liz Kendall will be answering questions from MPs this afternoon on the welfare proposals.
false,Monday 17 March 2025 09:03, UK
Sky News’ deputy political editor Sam Coates and Politico’s Anne McElvoy have their guide to the day ahead in British politics.
With Chancellor Rachel Reeves’s spring statement fast approaching, Labour faces a major challenge from its own backbenchers ahead of an announcement to restrict some sickness and disability benefits.
Sam says that Personal Independence Payments will not be frozen – as a previous leak suggested – to take an edge off the revolt.
Sam and Anne discuss the stakes for Sir Keir Starmer and the plausibility of a party rebellion.
Plus, it’s classroom war over schools and academies, as Education Secretary Bridget Phillipson comes under pressure over her plans to shake up curriculums. But why is the schools bill causing such a stir?
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There’s been lots of talk recently about the government wanting to slim down so-called “quangos” in a bid to reduce bureaucracy, save money and make the state more efficient.
But rather than an exotic fruit, a quango is actually an acronym of sorts – although it is still a mouthful.
It stands for quasi-autonomous non-governmental organisation.
These are organisations that tend to be state funded and full under the auspices of the government, but function on their own for the sake of accountability.
This can include regulating sectors and managing complaints, among other things.
The fact they are “independent” – not directly overseen by ministers – means politicians are somewhat shielded from blame if something goes wrong.
It also gives the bodies cover to criticise the state.
But it can also lead to a lack of accountability and bloat, according to critics.
David Cameron and George Osborne wanted to reduce the number of quangos, and it looks like Labour is going to continue their work.
John McDonnell is a stalwart of the left of the Labour Party – or he was until he was suspended from the parliamentary party last year.
The former shadow chancellor had the whip suspended after he voted against the two child benefit cap last year.
But he is still an influential figure on the left of the Labour Party, and spoke to Sky News this morning about planned welfare cuts.
McDonnell says there were plans for the Labour government to support people get back into work – but these seem to have been hijacked by the “heavy hand of the Treasury”.
He says the department will “cause more problems than it will save in the long term” by taking money away from the Department For Work And Pensions.
Notably, McDonnell does speak in overly critical terms about the prime minister, and doesn’t ham up the idea of a rebellion.
Sky News deputy political editor Sam Coates has heard that initially around £5bn of cuts was pencilled in for the DWP – with some of it to be reinvested.
But due to the poor economic picture, the chancellor has said this money needs to be completely removed from the outgoings column.
One of the big promises made by the Labour government was to bring in an independent regulator for football.
Sir Keir Starmer – quick to speak of his love for the game – is one of those who previously championed the introduction.
It came following the European Super League debacle, and the collapse of Bury FC.
But after a lot of big promises, the government has been quiet on it in recent weeks.
Now, there are rumours it maybe given the red card.
According to our deputy political editor Sam Coates, there’s a “memo on the prime minister’s desk” calling for the regulator to be scrapped.
The Sun’s political editor Harry Cole has heard similar.
This would be in consort with already existing quangos being scrapped in a bid to save money and make regulation more efficient.
A decision doesn’t seem to have been made yet, but with Cultures Secretary Lisa Nandy strongly advocating for the regulator in public, a direction from Number 10 to scrap it would cut her legs from underneath her.
Asked about the future of the regulator this morning, Treasury minister Emma Reynolds deflected three times while speaking to LBC.
Treasury minister Emma Reynolds has just been speaking to Sky News about the government’s plans to cut welfare spending.
A potential rebellion from within the party over the plans is already crystallising – especially from those on the left of the party.
But Reynolds plays this down.
Last week, Labour MPs were invited into Downing Street to discuss the measures and placate them in the face of the changes – and more talks are expected this week.
The minister says: “Well, look, we have a big majority.
“We are a government that’s secured a mandate for change.
“It is absolutely every day business that we should have discussions with backbenchers, meetings between our MPs and ministers happen all day, every day.
“So this isn’t something that is any different, but we are determined to strike the right balance here.”
Could Thames Water make Rachel Reeves’ job even harder?
In the coming days, the Court of Appeal is going to rule on one of the many contested areas of how the embattled water company works.
This is one of a number of things that could ultimately tip it into special administration, or public ownership.
I’m told that in government, they believe that the cost to government could top £11bn over five years.
That’s because it would cost roughly £2.2bn a year of public assistance before they can get it back into private ownership, probably in the next decade.
I believe that this figure does not currently appear in the Office for Budget Responsibility document out next week. But, if things change in the coming days – the court case goes the wrong way or there’s more rows – then it could appear under the “risks and uncertainties” sections.
Rachel Reeves only left herself £9.9bn headroom before she breaks her self-imposed borrowing limits.
She can ill afford a £2.2bn a year bill to be added to that total anytime soon.
Another reason why she should have left herself more breathing space?
Exclusive by Alex Rogers, political reporter
A row is brewing between teaching unions and Number 10 over the impact AI could have on jobs, Sky News has learnt.
The National Education Union (NEU), the largest teaching union in the UK, is concerned AI teaching tools could lead to some in the profession losing work, particularly lower-paid teaching assistants whose tasks could become automated.
Alarm bells were set off in January when the government announced it was giving £1m in funding to 16 tech companies to build teacher AI tools “for feedback and marking, driving high and rising education standards”.
NEU general secretary Daniel Kebede told Sky News that while there were positive aspects to the rollout of AI, he felt there had “not been any meaningful discussion with the sector yet” and that the Department for Education (DfE) was “running away with itself”.
“AI can reduce workload, slash bureaucracy and there is a role to reduce admin and workload for teachers – but education and learning is ultimately a relational and social experience,” he said.
“AI can be used in a progressive way or it can be used in the way of Elon Musk,” he added, referring to the tech billionaire who is spearheading Donald Trump’s Department of Government Efficiency (Doge) to cut federal waste.
Labour faces a major challenge from its own backbenchers ahead of an announcement to restrict some sickness and disability benefits.
The plans are likely to be opposed by those in the party who are concerned about attempts to slash the ballooning welfare bill and encourage adults back to work.
Work and Pensions Secretary Liz Kendall is expected to set out the reforms on Tuesday, but details of where those cuts could fall is proving highly divisive within Labour.
Total welfare spending in 2023-24 was about £296bn, by the end of the decade it is forecast to reach almost £378bn.
The chancellor needs to find savings to meet her strict fiscal rules and Rachel Reeves has previously insisted “we do need to get a grip” on the welfare budget.
One proposal reportedly under consideration is to save around £5bn by tightening the rules around the personal independence payment (PIP).
Welcome to another week in Westminster with the Politics Hub.
This week, we are expecting to hear more about the government’s plans to change welfare and benefits as they look to save money from the public purse.
It’s a divisive topic for Labour, with many on the left of the party reacting furiously to the prospect of their party reducing the amount of taxpayer money available.
But Wes Streeting told Sky News yesterday that the current system is “unsustainable”.
Liz Kendall, the work and pensions secretary, is facing a grilling in the Commons this afternoon as her department faces its turn to answer questions from MPs in what will surely be a blockbuster session at 2.30pm.
Elsewhere, Chancellor Rachel Reeves is meeting with regulators as the government continues its bonfire of the quangos.
Nigel Farage’s Reform UK is hosting a news conference today at midday.
The insurgent party has been embroiled in scandal and infighting following the suspension of MP Rupert Lowe.
And in the world of the Conservatives, Kemi Badenoch is giving a speech this afternoon.
Speaking to Sky News this morning will be Treasury minister Emma Reynolds just after 7am.
She’ll be followed by suspended Labour MP John McDonnell – who had the whip removed over a rebellion on benefits.
Shadow education minister Neil O’Brien will be on just after 8am.
The Conservatives will begin the process of formulating new policies this week as leader Kemi Badenoch seeks to rebuild her party after its catastrophic defeat last year.
A Conservative source said “nothing is off the table” in a process that starts on Tuesday and will see Mrs Badenoch task her shadow cabinet with coming up with proposals they can put before the electorate.
The source said: “Kemi is not afraid to make sweeping changes where necessary.
“The launch of this policy process will ensure the Conservatives are ready with a plan that will get government working for the British people once more.
“This will be in stark contrast to Keir Starmer and Labour, who have shown they had no plan and are making everything worse.”
The Tories ‘ “policy renewal process” echoes a similar approach taken under David Cameron’s early days as leader as he attempted to change the party’s image to beat New Labour, although not every proposal became official party policy.
Shadow cabinet members will lead the process in their respective areas, but will consult party members, supporters, thinktanks and other experts.
Since becoming leader last year, Mrs Badenoch has been reluctant to commit to many specific policies, saying she wanted to focus on Conservative principles and rebuilding trust instead.
The party faces a challenge of what direction to go in, as it faces a threat from Reform UK on the right but also lost many votes to Labour and the Lib Dems.
Ms Badenoch has made some commitments in response to Labour’s plans, including reversing their decision to charge VAT on private school fees and restoring the inheritance tax exemption for family-owned farms.
She may come under pressure to leave the European Convention on Human Rights (ECHR), as several prominent Conservatives including her leadership rival and shadow justice secretary Robert Jenrick have previously advocated.
With Mr Jenrick now in charge of the process for determining justice policy such a move could be back on the table.
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