Starmer to make second attempt at welfare reform after market chaos darkens economic outlook
Sir Keir Starmer is reportedly planning a second attempt at pushing through welfare cuts following his Downing Street reset.
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After rejigging his top team on Monday, the Prime Minister is set to try and overhaul the benefits system for a second time according to The Telegraph.
This comes after an earlier attempt was significantly watered down due to opposition from backbenchers.
Read More: Reeves’ authority not dented by reshuffle, No 10 says in bid to calm markets
The initial proposals were set to save the state around £5 billion but, after a rebellion led by now-suspended Rachael Maskell MP, the Bill was gutted in order to pass the Commons earlier this year.
One concession was dropping the planned changes to personal independence payments (PIP).
This protected some 370,000 existing claimants who were expected to lose out following reassessment.
Now, the Prime Minister's new team is gearing up to get more changes to the welfare system through Parliament.
As part of Monday’s reset, Rachel Reeves’ former number two in the Treasury, Darren Jones, has become the Prime Minister’s chief secretary and James Murray will replace him as Treasury chief secretary.
Former Treasury official Dan York Smith has been appointed Sir Keir’s principal private secretary and ex-Bank of England deputy governor Baroness Minouche Shafik his chief economic adviser.
Welfare reforms could be a target as soon as the Budget, after the change in the top team at Downing Street.
Borrowing costs shot to a 27-year high and the pound experienced its biggest loss of value in months.
The market chaos means that the forthcoming Budget will see even more pressure on Ms Reeves to find savings in public spending to avoid putting up taxes.