Sir Kir StamorU turn on Profit cut And Winter fuel payment Has blown £ 4.5bn hole in public finance The tax increase in autumn budget will be filled with ‘a lot of possibility’, warning by major economists.
Prime Minister‘S Climbing your welfare bill is even biggerAnd far more expensive, more than expected, Resolution foundation Found analysis.
And, Winter fuel payment combined with last month’s U-turnSir Keer will now need to find about £ 5BN from his Chancellor now Rahel reeves‘Autumn budget.
Resolution Foundation said that change Welfare bill of sir kirWhich will currently protect all those who receive personal freedom payment (PIP), prevent the main disability payment, 370,000 from losing support.
This will cost £ 2.1bn per year by 2030, while protecting the income of all those who receive the health elements of universal credit, the cost of 2.2 million people, which affects people, will cost up to £ 1.1BN each year.
It wipes up to £ 3.2bn of £ 5BN, the government expected to save through changes. The Institute for Fiscal Studies (IFS) also warned that the latest U-turn would be around £ 3BN, erasing half the savings of the welfare package, which should be funded from spending tax hike or elsewhere.
Its analysis warned, “These changes move forward in the budget of autumn, which will mainly depend on how the economic forecasts change is even more likely.” IFS Associate Director Tom Waters said that the already difficult budget balance act of Chancellor was made “so difficult”.
And, at the top of the £ 1.3BN’s decision to restore the winter fuel payment for 7 million pensioners, the month of Sir Kir’s U-Turns has quit fighting him with a £ 4.5bn black hole in public finance.
Jonathan Ports, King’s College London, a professor of economics and former chief economist at Cabinet Office, told Independent He thinks that tax growth is coming under the track.
He said: “I thought there was a lot of possibility anyway. I think the profit goods only confirm the basic point that better public services meant demographics and public demands that require some more taxes to some extent and it was honest about this for a long time.”
Care Minister Stephen Kinnock It was asked how the government would pay for changes, but refused “speculation”. He said that Chancellor will confirm how U-turn will be funded by giving his budget in the autumn.
Sir Kir gave great concessions to Labor MPs to thwart their controversial welfare bill.
In late night climbing, the PM offered to protect PIPs for all the current contenders and promised to review the PIP evaluation led by the Disabled Minister Sir. Stephen Tims And “co-made” with people with disabilities.
A number 10 spokesperson said: “We have listened to MPs who support the principle of reform, but are concerned about the pace of change for those already supported by the system.
“This package will preserve the social security system for those who need it, providing dignity for those unable to work by placing it on a permanent leg, supporting those who can currently reduce anxiety for those in the system.”
One of the major rebellious voices, Dame Meg Hillier described concessions as “a good deal”, including “massive changes” to protect weak people and involved people with disabilities in the design of future reforms.
He said: “It is encouraging that we have reached what I believe is a practical agreement that will protect people with disabilities and support people back into work, while the welfare system can be improving meaningfully.”
Some labor rebels are clinging to their guns and will still vote against the bill on Tuesday, but the Commons are likely to get adequate support to pass. He was facing an abusive defeat, with more than 120 Labor MPs signed rebellious amendments, seeking to kill the bill.
Along with flying a major holes in the government’s spending plans, campaigners warned that chaotic U-Turna PIP establishes a two-tier system for the claimants, where on the new system they already face different criteria for those receiving payments.
Ruth Curtis, Chief Executive of Resolution Foundation Think Tank, told BBC Radio 4 Today Program: “This is definitely the case that you will have two recipients with the same score on PIP assessment, one will be vessel and one will not be for a period of years under this system.
“On the other hand, it is not uncommon to start changing disability gain system in this way, where there are some other security for the existing recipients and this is not just a political question, I think it is also a matter that losing sufficient amount of money can have a great impact on families.”
James Watson-O’Neel, Chief Executive Officer of National Disability Charity Sense, said: “The concessions declared by the government on the upcoming welfare bill are important and positive, yet less than a proper deal for people with disabilities.”
