Overview

• Department for Work and Pensions analysis found that reversing PIP reforms and delaying Universal Credit eligibility changes erased all projected savings.
• Chancellor Rachel Reeves said she could not rule out tax rises in the autumn to address the financing gap caused by the welfare retreat.
• Downing Street declined to rule out a wealth tax after former leader Lord Kinnock and major unions proposed a 2 percent levy on assets over £10 million.
• Plans to abolish the two-child benefit cap are reported as ‘dead in the water,’ raising doubts about Labour’s child poverty strategy.
• Recent U-turns on winter fuel payments, together with the welfare retreat, have exposed deep Labour divisions over balancing social policy goals with strict fiscal rules.