Displaying items by tag: welfare reforms

The UN has sharply criticised the Government’s proposed welfare reforms, warning they could significantly worsen poverty among disabled people. Following a recent parliamentary vote that passed the benefits bill by 75 votes, secured only after last-minute concessions to Labour rebels, the UN’s committee on the rights of persons with disabilities has raised ten pressing concerns about the legislation. Key issues include politicians’ rhetoric suggesting disabled individuals exploit benefits and the reforms’ potential impact on young claimants, women with disabilities, and those requiring high-level support. The UN warns that the bill could deepen existing economic hardship, echoing findings from earlier reports which linked previous welfare cuts to increased food bank reliance, homelessness, and mental health crises. Disability advocates have condemned the reforms as punitive, urging MPs to consider the profound human consequences before advancing the legislation. Parliament will further debate the bill in the coming days, amid mounting national and international scrutiny. See

Financial markets reacted sharply this week after Rachel Reeves appeared tearful during Prime Minister’s Questions, after the Government’s sudden U-turn on welfare reforms. Sterling fell by 1% against the dollar, while UK borrowing costs surged in one of the largest single-day moves since the market turmoil following Liz Truss’s 2022 mini-budget. The welfare reversal has left an almost £5 billion gap in Reeves’s fiscal plans, prompting investor concerns about how the Government will balance the books. While Downing Street insisted Reeves retains Starmer’s full support, analysts say the episode highlights market anxiety over potential leadership instability and future fiscal policy. Speculation mounted about possible tax rises in the autumn, though ministers reiterated pledges not to increase income tax, VAT, or National Insurance. Despite the turbulence, experts noted that markets are not as fragile as during the 2022 crisis.