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(Bloomberg) — Prime Minister Keir Starmer looks ready to water down another of the UK government’s key policies, offering concessions to stop Labour party colleagues derailing his reforms to Britain’s expensive welfare payments.
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Starmer’s government planned to save £5 billion ($6.9 billion) a year by tightening criteria for disability payments, yet this week over 100 of Labour’s own Members of Parliament put their names to an amendment that could effectively kill the new laws at a vote next Tuesday.
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A Downing Street official said Thursday that talks were being held with Labour party colleagues and they hoped some reforms would start making their way through parliament next Tuesday.
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Talks will focus on two core parts of the reforms, according to a person familiar with the discussions. Those are people’s access to Personal Independence Payments, known as PIPS, a financial benefit paid to those with health problems or disabilities; and proposed cuts to health-related top up payments to Universal Credit, the UK’s main entitlement system for people of working age.
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Trade minister Douglas Alexander told Sky News “I think we’ve got time” to alter the bill so it passes through the House of Commons at next week’s second reading. “There’s discussions that have started happening and I expect that those conversations will continue,” he said.
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The Labour government has already U-turned on some of its major fiscal policies, including controversial cuts to payments received by millions of pensioners to help pay their energy bills each winter.
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