{"id":3664,"date":"2025-07-07T01:16:39","date_gmt":"2025-07-07T01:16:39","guid":{"rendered":"https:\/\/260web.com\/news\/welfare-u-turn-makes-spending-decisions-harder-minister-says\/"},"modified":"2025-07-07T01:16:39","modified_gmt":"2025-07-07T01:16:39","slug":"welfare-u-turn-makes-spending-decisions-harder-minister-says","status":"publish","type":"post","link":"https:\/\/260web.com\/news\/welfare-u-turn-makes-spending-decisions-harder-minister-says\/","title":{"rendered":"Welfare U-turn makes spending decisions harder, minister says"},"content":{"rendered":"<p>Welfare U-turn makes spending decisions harder, minister says<\/p>\n<p><div><img decoding=\"async\" src=\"https:\/\/260web.com\/news\/wp-content\/uploads\/2025\/07\/gTxmxZ.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<div data-component=\"byline-block\" class=\"sc-3b6b161a-0 dEGcKf\">\n<div data-testid=\"byline-new\" class=\"sc-801dd632-0 eSlECZ\">\n<div class=\"sc-801dd632-1 eeJXtz\"><time datetime=\"2025-07-06T10:39:18.030Z\" class=\"sc-801dd632-2 IvNnh\">15 hours ago<\/time><\/div>\n<div data-testid=\"byline-new-contributors\" class=\"sc-801dd632-12 jSIeFi\">\n<div class=\"sc-801dd632-5 kRoBHa\">\n<div><span class=\"sc-801dd632-7 lasLGY\">Joshua Nevett<\/span><\/p>\n<p><span>Political reporter<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-component=\"text-block\" class=\"sc-3b6b161a-0 dEGcKf\" readability=\"19\">\n<p class=\"sc-9a00e533-0 hxuGS\">Spending decisions have been made &#8220;harder&#8221; by the government&#8217;s U-turn on welfare changes, the education secretary has said, as she did not commit to scrapping the two-child benefit cap.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Bridget Phillipson told BBC One&#8217;s Sunday With Laura Kuenssberg programme that ministers were &#8220;looking at every lever&#8221; to lift children out of poverty.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">But she said removing the cap would &#8220;come at a cost&#8221; and insisted the government was supporting families with the cost of living in other ways.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">It comes after a rebellion of Labour MPs forced the government to significantly water down a package of welfare reforms that would have saved \u00a35bn a year by 2030.<\/p>\n<\/div>\n<div data-component=\"text-block\" class=\"sc-3b6b161a-0 dEGcKf\" readability=\"30.735620585267\">\n<p class=\"sc-9a00e533-0 hxuGS\">The climbdown means the savings will now be delayed or lost entirely, which puts pressure on Chancellor Rachel Reeves ahead of the autumn Budget.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Before its retreat on benefits, the Labour government was considering lifting the two-child benefit cap, a policy that restricts means-tested benefits to a maximum of two children per family for those born after April 2017.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">About 1.6 million children live in households affected by the cap, according to the Department for Work and Pensions.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The Institute for Fiscal Studies think tank estimates that axing the policy would cost the government about \u00a33.4bn a year and would lift 500,000 children out of relative poverty.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">When pressed by Kuenssberg on if the chances of getting rid of the cap had diminished, Phillipson said: &#8220;The decisions that have been taken in the last week do make decisions, future decisions harder.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">&#8220;But all of that said, we will look at this collectively in terms of all of the ways that we can lift children out of poverty.&#8221;<\/p>\n<\/div>\n<div data-component=\"text-block\" class=\"sc-3b6b161a-0 dEGcKf\" readability=\"31.376506024096\">\n<p class=\"sc-9a00e533-0 hxuGS\">Phillipson and Work and Pensions Secretary Liz Kendall are leading a child poverty taskforce, which is looking at the case for removing the cap, among other policy options.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The taskforce was expected to publish a strategy for reducing child poverty in the autumn.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The government launched the taskforce last year, at a time when it was being urged by opposition parties and some Labour MPs to scrap the two-child benefit cap.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">There is still a big appetite to lift the cap among many Labour backbenchers, especially those who were leading opponents of the planned cuts to welfare.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">In May, Phillipson said &#8220;nothing is off the table&#8221;, when asked whether the government was considering lifting the cap.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">But speaking to the Guardian newspaper on Friday, Chancellor Rachel Reeves said she was &#8220;not wedded to any specific policy&#8221; to reduce child poverty.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">In that interview, Reeves said it would be &#8220;irresponsible&#8221; for a chancellor to rule out tax rises and said &#8220;there are costs to what happened&#8221; with welfare.<\/p>\n<\/div>\n<div data-component=\"text-block\" class=\"sc-3b6b161a-0 dEGcKf\" readability=\"58.320480721082\">\n<p class=\"sc-9a00e533-0 hxuGS\">On the Sunday with Laura Kuenssberg programme, Phillipson struck a similar tone.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The cabinet minister said scrapping the two-child benefit cap &#8220;does come at a cost and that&#8217;s why, in keeping with our fiscal rules, we do need to make sure that we have a strong foundation for the economy&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Phillipson said while the cap was &#8220;an important consideration&#8221;, it was &#8220;not the only way that we are supporting and will support families&#8221;, pointing to the expansion of family hubs, free school meals, breakfast clubs, and childcare.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">In a post on X, Labour MP Jon Trickett &#8211; who voted against the government&#8217;s welfare changes &#8211; wrote: &#8220;The suggestion that Labour government will leave children in poverty because they couldn&#8217;t take welfare benefits from the disabled is truly shocking.&#8221;<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Conservative shadow chancellor Mel Stride, who also appeared on the programme, said the government had made some &#8220;poor choices&#8221; and argued more could be done to cut the growing benefits bill.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">He said his party would attempt to make changes to the government&#8217;s welfare reform bill as it makes its way through Parliament.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">One of the party&#8217;s amendments would reduce entitlement to disability and health-related benefits for those with less severe mental conditions.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">IFS analysis says more than half of the rise in 16-64 year-olds claiming disability benefits since the Covid-19 pandemic is related to mental health or behavioural conditions.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">If nothing changes, the health and disability benefits bill is forecast to reach \u00a370bn a year by the end of the decade, a level of spending the government says is &#8220;unsustainable&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The Conservatives have pointed to a report by the Centre for Social Justice, which argued cutting mental health benefits for all but the worst cases would save \u00a37.4bn per year by 2030.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">&#8220;We believe, particularly when it comes to mental health, one of the best solutions to those kinds of challenges is work,&#8221; Stride said.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">&#8220;We are the party that believes in work. We don&#8217;t believe that welfare should trap people.&#8221;<\/p>\n<\/div>\n<p>Published at Sun, 06 Jul 2025 10:39:18 +0000<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welfare U-turn makes spending decisions harder, minister says 15 hours ago Joshua Nevett Political reporter Spending decisions have been made &#8220;harder&#8221; by the government&#8217;s U-turn on welfare changes, the education secretary has said, as she did not commit to scrapping the two-child benefit cap. Bridget Phillipson told BBC One&#8217;s Sunday With Laura Kuenssberg programme that&hellip; <a class=\"more-link\" href=\"https:\/\/260web.com\/news\/welfare-u-turn-makes-spending-decisions-harder-minister-says\/\">Continue reading <span class=\"screen-reader-text\">Welfare U-turn makes spending decisions harder, minister says<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":3663,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk-politics","entry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/posts\/3664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/comments?post=3664"}],"version-history":[{"count":0,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/posts\/3664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/media\/3663"}],"wp:attachment":[{"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/media?parent=3664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/categories?post=3664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/tags?post=3664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}