Politics
More than 1m households to get £420 budget boost in universal credit change | Universal credit
More than 1m of the UK’s poorest households will be £420 a year better off on average as a result of a change to universal credit set to be announced in next week’s budget.
The measure is intended to primarily help the worst-off families, and will be seen as a way for ministers to head off criticism over decisions to cut winter fuel allowance for most pensioners and maintain the two-child benefit cap.
“It’s a downpayment on poverty reduction. It is unacceptable that people are in this kind of deep poverty, and this is a small victory for people in deep poverty,” one Whitehall source told the Guardian.
The measure, called the Fair Repayment Rate, is expected to come into force next April and will cap the amount that can be cut from benefit payments each month to repay short-term loans and debts.
It was welcomed by the charity Save the Children UK, which described the current level of benefit deductions shouldered by the poorest families as unfair and unsustainable.
Ruth Talbot, Save the Children UK’s policy and advocacy adviser, said: “It is bold thinking from ministers and we know it will have a significant impact for families and put more money in their pockets for food, toys, clothes and books.”
The move would cap the level of monthly deductions to individuals’ universal credit standard allowance at 15%, rather than the current 25%. It would help 1.2m households, including 700,000 families with children, who now see between about a sixth and a quarter of their monthly universal credit payments clawed back.
Benefit deductions are taken automatically for a range of debts, including Department for Work and Pensions (DWP) benefit advances, historical child tax credit overpayments, rent and council tax arrears, and water and utility bill debts.
The move would in effect allow claimants to repay debts over a longer period. It is unclear how much this will cost the Treasury. A more generous deduction minimisation scheme drawn up by the food bank charity Trussell earlier this month was put at £3bn in public sector net debt.
Save the Children estimates the measure could see single parents receive up to £39 more of their universal credit entitlement each month. For two-parent families, this could be up to £62. In some areas of the UK, two-thirds of children in households in receipt of universal credit are pushed deeper into poverty due to deductions.
Helen Barnard, the director of policy at Trussell, said: “This would be a positive first step to tackling the appalling levels of hardship our community of food banks see every day. On its own, however, this is unlikely to significantly reduce the numbers of people forced to turn to food banks to survive.”
Trussell studies have shown that the vast majority of households hit by universal credit deductions had been forced to go without food, heating or clothing in the previous six months because of lack of income.
There is some disappointment ministers did not go further and introduce a formal minimum protected floor to universal credit. This would have also neutralised the extreme poverty-creating effects of benefit cap deductions, which have left some families living on as little as £4 a day per person.
It is understood the welfare secretary, Liz Kendall, co-chair of the government’s child poverty strategy, has been arguing for the Fair Repayment Rate to be introduced to provide some relief to low-income families hit hard by the cost of living crisis.
Families on the lowest incomes typically pay more for food and energy than better-off households, with their day-to-day bills consuming a far greater share of their budgets, leaving them more at risk of problem debt or going without food and heating.
Latest figures show there were 4.3 million children in relative poverty in 2022-23, equivalent to one in three of all UK children, and an increase of 700,000 since 2011. Campaigners are especially worried about the increasing numbers of children experiencing extreme levels of poverty or destitution.
New research by the Joseph Rowntree Foundation estimates the UK’s poorest families are up to £700 a year worse off than they were five years ago. It said living standards for the poorest third were due to fall over the next five years, widening income inequalities, without government action.
Ministers set out the government’s 10-year child poverty strategy framework this week, ahead of a more detailed plan of action to be published in the spring. “Tackling child poverty is both a moral imperative and crucial to building a stronger society and economy,” it said.
The government has rejected calls to abolish the two-child benefit limit, despite heavy pressure from campaigners and backbenchers, arguing that scrapping the Tory-designed policy is unaffordable. It has also been criticised for cuts to winter fuel allowance.
In a separate budget announcement, the Treasury announced a boost to social housing, with an additional £500m to be given to the government’s affordable homes programme.
Additionally, housing associations will be allowed to set rents for five years, giving them more stability to invest in extra housing. They will be allowed to raise rent by the consumer price index level of inflation plus 1% each year.
The BBC reported that the chancellor will increase the amount employers pay in national insurance to raise £20bn for public services. Reeves is also expected to lower the threshold for when employers start paying the tax.
Politics
Starmer slams Tory leader candidates for Southport comments
The prime minister has criticised both Conservative leadership candidates for casting doubt on the police and government’s response to the Southport attack that left three young girls dead.
Tory leadership hopeful Robert Jenrick has suggested information on the attack was “concealed”, while his rival Kemi Badenoch argued that the government, police and prosecutors “have questions to answer”.
This follows the revelation 18-year-old Axel Rudakubana, who is accused of murdering the three girls, was charged with two further offences – including one under the Terrorism Act.
Sir Keir warned MPs they “can either support the police in their difficult work” on the Southport case or “undermine” it.
During his weekly Prime Minister’s Questions session, Sir Keir told a packed House of Commons: “It is important police and prosecutors are able to do their difficult job.
“All of us have a choice to make, including those running to be Conservative leader, they can either support the police in their difficult task or they can undermine the police in their difficult task, and I know what side I am on.”
Badenoch was in the Commons to hear the comments.
Sir Keir was responding to a question from Reform UK’s deputy leader Richard Tice, who called for the police to be more open about investigations.
Reform UK leader Nigel Farage faced criticism after the Southport killings for questioning the police’s assessment of the attacks.
Following the revelations about the extra charges against Mr Rudakubana, Farage released a video claiming “perhaps I was right all along”.
On Wednesday, Mr Rudakubana appeared in court charged with production of the poison ricin and possession of a military study of the Al Qaeda training manual, an offence under terrorism legislation.
Counter Terrorism Police are not currently treating the Southport attack itself as a terrorist incident.
The teenager had already been charged with the murders of Bebe King, six, Elsie Dot Stancombe, seven, and nine-year-old Alice Dasilva Aguiar who died at a Taylor Swift-themed dance class on 29 July.
Following reports of the new charges, Jenrick told ITV News he wanted answers on “when the prime minister knew”.
“The state should not be lying to its own citizens,” he said.
Asked if he thought the state had lied, Jenrick said: “We don’t know the reason why this information has been concealed.
“Why has it taken months for the police to set out basic facts about this case that it is reasonable to believe were known within hours or days of this incident occurring?”
In a social media post Badenoch said there were “serious questions to be asked of the police, the [Crown Prosecution Service] and also of Keir Starmer’s response to the whole situation”.
She said: “Parliament is the right place for this to happen.
“While we must abide by the rules of contempt of court and not prejudice this case, it is important that there is appropriate scrutiny.”
The BBC understands senior figures in government first became aware of the possibility of new charges against the suspect in the Southport murders in the past few weeks.
A spokesperson for the prime minister said it was “not correct” to say the government had been involved in withholding facts from the public.
The CPS said it has taken time to bring the charges because this was a “lengthy and complex investigation”.
Ahead of PMQs, House of Commons Speaker Sir Lindsay Hoyle warned MPs of the risk of seriously prejudicing criminal proceedings by commenting on the investigation in the Commons.
While members might be frustrated at not being able to comment he said: “More importantly at the heart of this case are three young girls.
“We all went to see justice for them and others affected by this appalling incident.”
The day after the Southport attack, thousands attended a peaceful vigil in the town, but a separate protest later turned violent outside a mosque.
This sparked a wave of protests across many towns and cities in the following days, leading to violence and rioting, particularly against asylum centre hotels.
More than 1,000 people have been arrested, and hundreds have been charged and sentenced to jail.
Politics
Starmer thanks Sunak for hard work, commitment and decency
Prime Minister Sir Keir Starmer has thanked his predecessor Rishi Sunak “for his service” to the country, and wished his family well for the future.
The Speaker also mentioned that this is the last time Sunak would appear at PMQs, as a new Conservative Party leader is due to be selected on 2 November.
Politics
Government aware of new Southport charges in past few weeks
The most senior figures in government first became aware of the possibility of new charges against the suspect in the Southport murders in the past few weeks, the BBC has been told.
A spokesperson for the prime minister said it was “not correct” to say the government had been involved in withholding facts from the public.
It comes after the two candidates for the Conservative leadership said the government had questions to answer about the new charges.
Axel Rudakubana, 18 – who is accused of murdering three young girls in Southport – is facing two further charges, including one under the terrorism act.
On Tuesday he was charged with production of a biological toxin contrary to Section 1 of the Biological Weapons Act 1974.
He has also been charged with possessing a PDF document of a kind likely to be useful to a person committing to or preparing an act of terrorism, contrary to Section 58 of the Terrorism Act 2000.
The teenager had already been charged with the murders of Bebe King, six, Elsie Dot Stancombe, seven, and nine-year-old Alice Dasilva Aguiar who died at a Taylor Swift-themed dance class on 29 July.
To charge someone under the Biological Weapons Act, the Crown Prosecution Service has to obtain consent from the government’s law officers – the attorney general or solicitor general.
The BBC has been told that in this case, consent was requested in recent weeks, and granted “within days”.
The teenager had been due in court in Liverpool for a pre-trial preparation hearing last Friday, 25 October.
That was postponed in order for all the charges to be dealt with together at Westminster Magistrates Court, where he will appear on Wednesday 30 October.
The charging decision and its timing were a matter for the CPS, a government spokesperson added.
It comes after the two candidates for the Conservative leadership raised questions about the new charges.
Robert Jenrick suggested that information was being “concealed” from the public.
“We were told for months that this was not a terror-related incident, and yet we have learnt that this individual, the suspect, was allegedly reading al-Qaeda manuals and had access to dangerous substances like ricin,” he said.
“Given the scale of public interest, I think it is an important question to be asked, why was this information not put into the public domain sooner? So I’m asking the public authorities and the prime minister, what did they know, when did they learn it, and why was the decision taken not to be more honest and transparent with the public.”
Meanwhile Kemi Badenoch has suggested there are “serious questions to be asked of the police, the CPS and also of Keir Starmer’s response”.
She has not elaborated on what those questions are, suggesting they should be asked in Parliament.
The police say it is “certainly not the case” that they have been keeping things from the public. It would be highly unusual for them to release details of a live police investigation.
The CPS suggest it has taken time to bring the charges because this was a “lengthy and complex investigation”.
The new charges do not mean the Southport attacks are being treated as a terrorist incident.
Possessing a document that could be useful in preparing an act of terrorism is an entirely separate offence.
To be labelled as terrorism, the attack would have to be an attempt to advance a political, religious, racial or ideological cause. But it is not clear what possible motivation there might have been.
Authorities are urging people not to speculate, as it could jeopardise the entire court case.
Home Secretary Yvette Cooper said: “These additional charges will undoubtedly be distressing for people in Southport.
“The most important thing is to get justice for Bebe, Alice and Elsie and their heartbroken families, and all those affected by the attack and nobody should put that at risk.
“The police and prosecutors have an important job to do in their investigation, pursuing every avenue and taking the action they need to ahead of the trial.
“We must support them and ensure that everything possible is done to deliver justice.”
Politics
A big Budget – for tax, borrowing and spending
This will be a big Budget.
Big tax rises, big borrowing, big spending.
And big politically – because it will set the political landscape for the years to come.
Chancellor Rachel Reeves will promise that she will “invest, invest, invest” and will tell the Commons: “My belief in Britain burns brighter than ever.
“More pounds in people’s pockets. An NHS that is there when you need it.
“An economy that is growing, creating wealth and opportunity for all.”
Note the upbeat tone, after no shortage of the bleak from ministers recently.
The government is also emphasising that it is “protecting working people’s payslips” – which is code for National Insurance paid by employers, rather than employees, going up – one of the biggest rows of the last few weeks.
Expect Labour to try to use this Budget to attempt to open up a political dividing line with the Conservatives – rather similar to the one Gordon Brown tried a decade and a half ago – where they advocate what they call “investment”, ie spending, and contrast that with what they will label the “decline” offered by the Tories.
Conservative leader Rishi Sunak – on his last big day in the job before his successor is elected on Saturday – will, unsurprisingly, strongly criticise the Chancellor later.
“She’s called National Insurance a ‘jobs tax’ which ‘takes money out of people’s pockets’,” he says.
“And worst of all, she said the problem with National Insurance ‘is that it is a tax purely on people who go to work and those who employ them’.
“Far from protecting working people she would be raising literally the only major tax that specifically hits working people.”
It is expected the Liberal Democrats will focus on social care and the availability of GP and dentist appointments in their response to the Budget.
It is 14 years and seven months since a Labour Chancellor waved the Budget Red Box on the step of 11 Downing Street.
Wednesday 24 March 2010 was the day of Alistair Darling’s third Budget, delivered on the eve of an election campaign Labour would go on to lose.
Incidentally, what was the most expensive measure that day? A promise, costing £600m, to increase the Winter Fuel Allowance for another year.
A Labour idea that would continue throughout the coalition and Conservative years of power, only to be cancelled for the vast majority of pensioners when Labour won again back in July.
For 800 years, men have run the nation’s finances. There have been 110 Chancellors since Sir Richard Sackville was appointed in 1559 – a centuries’ long unbroken line of blokes – which includes Henry Bilson Legge (three times chancellor in the 18th century), and William Gladstone, who had four goes at it in the 19th century.
Until, that is, the appointment of Rachel Reeves.
The Conservatives may have managed the first three female prime ministers, with Labour’s record currently zero, but the first Budget from a female Chancellor of the Exchequer is a genuine moment of history.
So, what can we expect?
Well, the big stuff has been talked up in advance – through nods and winks, official briefings and unauthorised leaks.
There are tax rises, expected to include employer National Insurance and inheritance tax.
There is the change in the government’s self-imposed debt rules, so it can borrow a lot more.
There is the rise in the minimum wage.
There is money to rebuild schools in England.
And the plans for new equipment for the NHS, such as scanners and radiotherapy machines.
Expect a lot of talk from Rachel Reeves about what she will call “choices”.
Her team see it as a “once in a generation” Budget, where its scale, it is claimed, matches the scale of the challenge they face.
Which is code for the country’s in a mess and they think it’s going to cost a lot to fix it.
The extent to which it is – and whether billions of pounds more of taxpayers’ money are the solution – are the open questions.
Politics
Ex-Tory MP reprimanded for ‘brazen’ sexual misconduct | House of Commons
A former Conservative MP has been reprimanded for “brazen and drunken” sexual misconduct in one of parliament’s bars.
Aaron Bell, who was the Tory MP for Newcastle-under-Lyme until July, was found by a parliamentary watchdog to have “abused his position of power” by touching a woman “on her left thigh, waist and bottom inappropriately and without her consent”.
The incident took place in parliament’s Strangers’ bar in December 2023.
The independent expert panel (IEP), which decides on sanctions for those found guilty of misconduct, said it would have considered suspending Bell from parliament “for a significant period” if he were still an MP.
In a statement responding to the IEP’s report, Bell apologised “for any upset caused to the complainant” and to his former constituents, and said the investigation was one of the reasons he chose not to seek re-election this summer.
The report said Bell had “abused his position of power over the complainant” as he was considerably older than her, an elected MP and government whip. It said the complainant, a young female member of staff, “felt targeted” and feared “considerable adverse impacts on her career if she made a complaint”.
The Mirror reported last month that onlookers had spotted Bell being escorted out of a party at the Conservative party conference in Birmingham.
The IEP’s report follows a complaint made to parliament’s independent complaints and grievance scheme in February 2024, which was upheld after an investigation.
The Guardian has contacted Bell for comment. In a statement issued via the Conservative party, he said: “I am disappointed at the outcome of the investigation but have chosen not to appeal the findings of the commissioner.
“I apologise for any upset caused to the complainant and wish to make it clear that I did not intend to cause any distress. This investigation was one of the reasons I chose not to seek re-election at the general election – I have let down the loyal members of my association and thank them for the support they gave me as a Member of Parliament. I would also like to apologise to the people of Newcastle-under-Lyme, whom it was an honour to serve.
“This has been a difficult time for my family and I would ask that their privacy is respected at this time.”
Politics
Asylum seekers moved off Dorset barge
Hundreds of asylum seekers onboard the Bibby Stockholm have been moved off the barge ahead of decisions on whether they can stay in the UK.
Around 300 residents have already been moved, with around a further 100 still on board, the BBC understands.
Once in temporary accommodation, they are then told if they have been granted leave to remain in the UK.
If successful, they have 30 days to find somewhere to live.
It was previously announced the contract for the Bibby Stockholm, which is moored off Portland in Dorset, would expire in January 2025.
The Home Office confirmed that when the asylum seekers – who are all men – left the barge, none of them would be moved to Portland, Weymouth, or the wider Dorset Council area.
They would instead be “dispersed across the country”, it continued.
Campaigners helping the asylum seekers say they have seen them sent to places including Cardiff, Wolverhampton, Bristol and Worksop.
Giovanna Lewis from the Portland Global Friendship Group, which has been supporting the residents of the Bibby, said: “The men are taken individually by taxi to their new accommodation around the country, where they stay for three or four weeks supported by the Home Office until the decision on their status is made.
“If they are given the right to remain they have 30 days to find alternative accommodation. If they are refused they have the right to appeal and are supported while that appeal takes place.”
In a statement, a Home Office spokesperson said: “This government inherited an asylum system under unprecedented strain, with thousands stuck in a backlog without their claims processed.
“We have taken immediate action to restart asylum processing which will save an estimated £7 billion for the tax payer over the next ten years, and are delivering a major uplift in returns to remove people with no right to be in the UK. Over the long term this will reduce our reliance on hotels and costs of accommodation.
“We remain absolutely committed to ending the use of hotels for asylum seekers.”
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