Fewer driving test slots will be wasted as the UK government announces an extension to the window for test cancellations to prevent last minute changes.
From 8 April 2025, learner drivers will need to give more notice when changing or cancelling their car driving test to avoid losing their fee. Currently, customers can cancel up to 3 days ahead of their test without losing their test fee.
Under the new rules, learners must give 10 full working days’ notice to change or cancel their test without losing the fee.
Extending the window will also encourage customers to be better prepared and ready to pass when they book their test – as well as encourage learners to change or cancel their test sooner if they’re not ready and so give more chance for appointments to be used by someone else.
Minister for the Future of Roads, Lilian Greenwood, said: “Driving is more than just a means of transport; it is a lifeline for many, opening doors to jobs, opportunities and ultimately contributing to the growth of our economy.
“The measures announced today are another vital step in tackling the driving test backlog and ensuring that more learners who are ready to take their test can do so without unnecessary delays.
“These new measures will ensure that driving test appointments are used efficiently, encouraging learners to make adjustments to their schedules sooner, should they not be fully prepared.”
The change announced yesterday (17 March 2025) is part of the government’s 7-point plan to help reduce driving test waiting times.
Announced in December 2024, the plan includes:
recruiting and training 450 driving examiners
reviewing and improving the rules for booking driving tests
introducing tougher terms and conditions for the service driving instructors use to book and manage car driving tests for their pupils
Loveday Ryder, DVSA’s Chief Executive, said: “Extending the short notice cancellation period for driving tests forms part of our 7-point plan to reduce driving test waiting times.
“This will encourage learners to change or cancel their test sooner so we can offer up those slots to other customers.
“We remain committed to reducing driving test waiting times and supporting learners in getting on the road when they are truly ready and safe to do so.”
To further protect motorists given continued cost-of-living pressures and potential fuel price volatility amid global uncertainty, the government has also frozen fuel duty at current levels for another year, saving the average car driver £59.
Sending top doctors into areas of highest economic inactivity in England is ‘busting through the backlog’
Targeted approach is cutting waiting lists twice as fast as rest of the country
Plans to roll scheme out further as government delivers on its Plan for Change
A new Labour government initiative to send top doctors to support hospital trusts in areas where more people are out of work and waiting for treatment is cutting waiting lists faster, new data shows.
In September, Health and Social Care Secretary Wes Streeting sent in crack teams spearheaded by top clinicians to NHS hospitals serving communities with high levels of economic inactivity. The teams support NHS trusts to go further and faster to improve care in these areas, where more people are neither employed nor actively seeking work, for reasons including ill health.
Latest data from October 2024 to January 2025 shows waiting lists in these areas have, on average, been reduced at more than double the rate of the rest of the country, falling 130% faster in areas where the government scheme is in action than the national average.
A total of 37,000 cases have been removed from the waiting lists in those 20 areas, averaging almost 2,000 patients per local trust.
The teams of leading clinicians introducing more productive ways of working to deliver more procedures, including running operating theatres like Formula One pit stops to cut down on wasted time between operations.
The scheme has delivered huge improvements in areas of high economic inactivity. They include:
The Northern Care Alliance & Manchester Foundation Trust – where a series of ‘super clinics’ with up to 100 patients being seen a day in one-stop appointments where patients can be assessed, diagnosed and put on the treatment pathway in one appointment. These include Employment Advisors on site to support patients with any barriers to returning to work. Those that require surgery are then booked to ‘high flow theatre’ lists such as those at the Trafford Elective Surgery Hub.
Warrington & Halton – which has run Super Clinics for Gynaecology delivered at weekends, with one-stop models reducing the need for follow up appointments.
East Lancs Hospitals Trust – which has focused on streamlining diagnostic pathways and increasing capacity for Echocardiography, or heart scans, reducing the waiting list for these from around 2700 patients to around 700 – with all of patients having their scan within 6 weeks.
Data shows the number of people unable to work due to long term sickness is at its highest since the 1990s. The number of adults economically inactive due to ill-health rose from 2.1m in July 2019 to a peak of 2.9m in October 2023. The decision to send the crack teams to these 20 trusts first was based on the government’s aim to get people back to health and back to work, helping to cut the welfare bill.
Following the success of the programme, the government has confirmed similar crack teams will be rolled out to additional providers this year to boost NHS productivity and cut waiting times further.
Health and Social Care Secretary Wes Streeting said: “The investment and reform this government has introduced has already cut NHS waiting lists by 193,000, but there is much more to do.
“By sending top doctors to provide targeted support to hospitals in the areas of highest economic inactivity, we are getting sick Brits back to health and back to work.
“I am determined to transform health and social care so it works better for patients – but also because I know that transformation can help drag our economy out of the sluggish productivity and poor growth of recent years.
“We have to get more out of the NHS for what we put in. By taking the best of the NHS to the rest of the NHS, reforming the way surgeries are running, we are cutting waiting lists twice as fast at no extra cost to the taxpayer.
“As we boost NHS productivity and deliver fundamental reform through our Plan for Change, you will see improvements across the service in the coming weeks and months.”
The new data comes after the Westminster government confirmed the abolition of NHS England, centralising the way that health care is delivered, cutting bureaucracy and improving care outcomes for patients up and down the country.
The government inherited waiting lists of over 7.6 million last July, and rising numbers of patients waiting months and years to get the treatment they need to get back to their jobs.
Thanks to immediate action taken by the government- including ending the strikes and investing more in the NHS – overall waiting lists have fallen for the last five months in a row, dropping by 193,000.
The targeted teams are the latest success delivered by the government as it continues its fundamental reform of the NHS through the Plan for Change.
Soon after taking office, it confirmed an extra £1.8 billion to deliver extra elective activity across the country.
This helped create an extra 2 million elective care appointments between July and November last year – delivering on the government’s manifesto pledge seven months early.
Other plans to increase elective care productivity and cut waiting lists include opening community diagnostic centres 12 hours a day, seven days a week, revolutionising the NHS app so patients can receive test results and book appointments, and increasing use of the independent sector to improve patient choice.
Number of people on the highest rate of Universal Credit with no support to look for work has almost quadrupled since the Covid pandemic
Figures show 1.8 million people now in Limited Capability for Work Related Activity (LCWRA) category as broken Work Capability Assessment continues to push people out of work
New figures emerge ahead of proposals to reform health and disability benefits and builds on the plan to get Britain working
1.8 million people on Universal Credit are getting no support to find work, according to new data released yesterday (Thursday 13 March).
The number has almost quadrupled since the start of the pandemic when 360,000 people were considered too sick to look for work – a 383% rise in less than five years. In the last year alone, the number has risen by from 1.4 million people to 1.8 million.
The number of young people aged 16 to 24 on LCWRA has risen by 249% from 46,000 to 160,000 since the pandemic – demonstrating a worrying increase in the number people becoming trapped in inactivity early in life, with almost one million young people not in education, employment, or training.
The government is already taking action to get people into work through its plan to get Britain working which will empower local mayors to tackle economic inactivity, overhaul Jobcentres, and deliver a Youth Guarantee so every young person is either earning or learning.
Building on the biggest employment reforms for a generation, Liz Kendall is due to announce radical welfare reforms to create a thriving and inclusive labour market – as part of the government’s Plan for Change to unlock work, boost growth and raise living standards.
Work and Pensions Secretary, Rt Hon. Liz Kendall MP, said: “Millions of people have been locked out of work by a failing welfare system which abandons people – when we know there are at least 200,000 people who want to work, and are crying out for the right support and a fair chance.
“This government is determined to fix the broken benefits system we inherited so it genuinely supports people, unlocks work, boosts living standards while putting the welfare bill on a more sustainable footing.”
In the current dysfunctional system, a person is placed in binary categories of either “fit for work” or “not fit for work” through the Work Capability Assessment (WCA) – an assessment the government has said it will either reform or replace, so it no longer drives people who want to work to a life on benefits.
Through this process, those not fit for work are told they have Limited Capability for Work Related Activity (LCWRA) – meaning they won’t receive employment support or further engagement from the system at any point following their assessment – effectively abandoning and locking them out of work indefinitely.
The current system, in which people 25 and over on the standard rate of UC get £393.45 a month and those with a health condition get an additional £416.19, gives an incentive for people to say they can’t work – and get locked out of help and support – simply to get by financially.
Over the past five years, 67% of people on Universal Credit who have been through a WCA were considered LCWRA – a symptom of the assessment system pushing people to prove their inability to work for a more generous payout.
The government says it has hit the ground running to tackle health-related inactivity at its root, improving the country’s wellness by investing £26 billion in the NHS, delivering 2 million extra appointments to tackle medical waiting lists, and hiring an extra 8,500 mental health workers, so people get the treatment they need to stay healthy and in work.
This comes alongside the £250 million plan to get Britain working and the recently announced 1,000 Work Coaches will be redeployed to offer intensive employment support to around 65,000 sick and disabled people – a ‘downpayment’ on our plan to restore fairness to our welfare system.
Ending NHS England will ‘reduce bureaucracy, make savings and empower NHS staff to deliver better care for patients’
Major reforms to empower NHS staff and put patients first
Changes will drive efficiency and empower staff to deliver better care as part of Prime Minister’s Plan for Change
Move will reduce complex bureaucracy and undo the damage caused by 2012 reorganisation
Reforms to reduce bureaucracy, make savings and empower NHS staff to deliver better care for patients have been set out today by the Prime Minister, Keir Starmer.
NHS England will be brought back into the Department of Health and Social Care (DHSC) to put an end to the duplication resulting from 2 organisations doing the same job in a system currently holding staff back from delivering for patients.
By stripping back layers of red tape and bureaucracy, more resources will be put back into the front line rather than being spent on unnecessary admin.
The reforms will reverse the 2012 top-down reorganisation of the NHS which created burdensome layers of bureaucracy without any clear lines of accountability. As Lord Darzi’s independent investigation into the state of the NHS found, the effects of this are still felt today and have left patients worse off under a convoluted and broken system.
The current system also penalises hardworking staff at NHS England and DHSC who desperately want to improve the lives of patients but who are being held back by the current overly bureaucratic and fragmented system.
Health and Social Care Secretary, Wes Streeting, said: “This is the final nail in the coffin of the disastrous 2012 reorganisation, which led to the longest waiting times, lowest patient satisfaction and most expensive NHS in history.
“When money is so tight, we cannot justify such a complex bureaucracy with 2 organisations doing the same jobs. We need more doers and fewer checkers, which is why I’m devolving resources and responsibilities to the NHS frontline.
“NHS staff are working flat out but the current system sets them up to fail. These changes will support the huge number of capable, innovative and committed people across the NHS to deliver for patients and taxpayers.
“Just because reform is difficult does not mean it should not be done. This government will never duck the hard work of reform.
“We will take on vested interests and change the status quo, so the NHS can once again be there for you when you need it.”
Sir James Mackey, who will be taking over as Transition CEO of NHS England, said: “We know that while unsettling for our staff, today’s announcement will bring welcome clarity as we focus on tackling the significant challenges ahead and delivering on the government’s priorities for patients.
“From managing the COVID pandemic, the biggest and most successful vaccine campaign which got the country back on its feet, to introducing the latest, most innovative new treatments for patients, NHS England has played a vital role in improving the nation’s health. I have always been exceptionally proud to work for the NHS – and our staff in NHS England have much to be proud of.
“But we now need to bring NHS England and DHSC together so we can deliver the biggest bang for our buck for patients, as we look to implement the 3 big shifts – analogue to digital, sickness to prevention and hospital to community – and build an NHS fit for the future.”
Incoming NHS England chair, Dr Penny Dash, said: “I am committed to working with Jim, the board and wider colleagues at NHS England to ensure we start 2025 to 2026 in the strongest possible position to support the wider NHS to deliver consistently high-quality care for patients and value for money for taxpayers.
“I will also be working closely with Alan Milburn to lead the work to bring together NHS England and DHSC to reduce duplication and streamline functions.”
Work will begin immediately to return many of NHS England’s current functions to DHSC. A longer-term programme of work will deliver the changes to bring NHS England back into the department, while maintaining a ‘laser-like focus’ on the government’s priorities to cut waiting times and responsibly manage finances.
It will also realise the untapped potential of the NHS as a single payer system, using its centralised model to procure cutting-edge technology more rapidly, get a better deal for taxpayers on procurement and work more closely with the life sciences sector to develop the treatments of the future.
The reforms to deliver a more efficient, leaner centre will also free up capacity and help deliver significant savings of hundreds of millions of pounds a year, which will be reinvested in frontline services to cut waiting times through the government’s Plan for Change.
The changes will crucially also give more power and autonomy to local leaders and systems – instead of weighing them down in increasing mountains of red tape, they will be given the tools and trust they need to deliver health services for the local communities they serve with more freedom to tailor provision to meet local needs.
The number of people working in the centre has more than doubled since 2010, when the NHS delivered the shortest waiting times and highest patient satisfaction in its history. Today, the NHS delivers worse care for patients but is more expensive than ever, meaning that taxpayers are paying more but getting less.
Too much centralisation and over-supervision has led to a tangled bureaucracy, which focuses on compliance and box-ticking, rather than patient care, value for money and innovation. In one example, highlighted by Dame Patricia Hewitt’s 2023 review, one integrated care system received 97 ad-hoc requests in a month from DHSC and NHS England, in addition to the 6 key monthly, 11 weekly and 3 daily data returns.
The review also revealed the challenges caused by duplication – citing examples of tensions, wasted time and needless frictional costs generated by uncoordinated pursuit of organisational goals that do not take account of their wider effects.
Substantial reform, not just short term investment, is needed to deliver the government’s Plan for Change mission to get the NHS back on its feet and fit for the future, and this announcement is one of a series of steps the government is taking to make the NHS more productive and resilient so that it can meet the needs of the population it cares for.
NHS England’s new leadership team, Sir Jim Mackey and Dr Penny Dash, will lead this transformation while re-asserting financial discipline and continuing to deliver on the government’s priority of cutting waiting times through the Plan for Change.
These reforms will provide the structure necessary to drive forward the 3 big shifts identified by government as crucial to building an NHS fit for the future – analogue to digital, sickness to prevention and hospital to community.
Since July, the government has already taken significant steps to get the NHS back on its feet, including bringing an end to the resident doctor strikes, delivering an extra 2 million appointments 7 months early and cutting waiting lists by 193,000 since July.
Commenting on the Prime Minister’s announcement that NHS England is to be abolished, UNISON general secretary Christina McAnea said: “Everyone wants more to be spent on frontline services so the sick and injured can be treated sooner.
“Delays and long waits for operations and appointments have left several million unable to work, with a knock-on effect on economic growth.
“More of a focus and greater investment in the entire NHS team of staff, not just nurses and doctors, would help turn around the fortunes of a floundering NHS.
“Put simply the health service needs thousands more staff and to be able to hold on to experienced employees. At the moment, it’s struggling to do that. Giving staff a decent pay rise would help no end.
“But this announcement will have left NHS England staff reeling. Just days ago they learned their numbers were to be slashed by half, now they discover their employer will cease to exist.
“The way the news of the axing has been handled is nothing short of shambolic. It could surely have been managed in a more sympathetic way.
“Thousands of expert staff will be left wondering what their future holds. Wherever possible, their valuable skills must be redeployed and used to the benefit of the reformed NHS and patients.
“Ministers have to reassure employees right across the NHS that there’s a robust plan to rejuvenate a flailing NHS and deliver for working people.”
Following Sir Keir Starmer’s announcement to scrap NHS England, a leading cybersecurity expert has warned the move could leave the health service dangerously exposed to cyberattacks.
While the proposed reforms aim to cut bureaucracy and streamline services, he warns that removing NHS England’s centralised cybersecurity infrastructure is “like a hospital suddenly removing its emergency department and expecting patients to fend for themselves.”
Graeme Stewart, head of public sector at Check Point Software, said, “While the Prime Minister’s sweeping reforms cover everything from cutting red tape to reining in bureaucracy, one critical area must not be left in the lurch: our cybersecurity defences. Scrapping NHS England’s centralised services is not just a bureaucratic shake-up; it’s like a hospital suddenly removing its emergency department and expecting patients to fend for themselves.
“At present, NHS England provides the backbone for our cyber defences, from a unified email service to specialised threat protection. Removing these central functions risks leaving individual NHS Trusts to fend off cyberattacks with a patchwork of under-resourced teams. As the adage goes, ‘a chain is only as strong as its weakest link,’ and our cyber chain is already under severe strain with attacks on the rise.
“Moreover, dismantling these central services could open the door for a surge of third-party suppliers to step in. While more suppliers might seem like a win for competition, it also fragments our defence and leaves us vulnerable; each new supplier is a potential weak link in our security armour.
“We need a robust, unified security system that acts like a digital fortress, not a hodgepodge of outsourced patches. In the midst of these broad reforms, let’s ensure the cyber element isn’t left out in the cold. Our digital defences must be retained or replaced with an equally robust solution; otherwise, we’re setting the stage for a cyber disaster.”
British schoolchildren took their fight for global education funding straight to Westminster yesterday, as part of a powerful protest against government cuts to overseas aid.
Backed by TV presenter, Paralympian, and Street Child charity Ambassador Ade Adepitan MBE, students from the Send My Friend to School coalition urged policymakers to reverse the decline in education aid and prioritise investment in learning worldwide.
The demonstration came as the UK Government confirmed a further reduction in the Official Development Assistance (ODA) budget, slashing it from 0.5% to 0.3% of Gross National Income.
With education already one of the most underfunded areas in global development, campaigners fear the cuts will leave millions more children without access to schooling.
Speaking at the event, Ade Adepitan reflected on the life-changing impact of education. “The only reason I’m where I am today is because of two reasons: luck and education,” he said.
“Lucky enough that my parents were brave enough to leave our home in Nigeria, give up everything for a better life, but also because of education. I was able to access a strong education in London that changed my life.”
Students leading the campaign made an impassioned case for urgent action, warning that education is the key to breaking the cycle of poverty.
“Education is not just about learning subjects like maths or science,” said student activist Ewura. “It’s about giving young people the tools to build a better future. When children are educated, they can help change the world.”
Echoing the call, fellow campaigner Davi urged the UK to step up its leadership on the issue: “That’s why campaigns like Send My Friend to School are so important,” he said. “They remind leaders that education should be a top priority. And as young people, we have a voice too.
“We can speak up, raise awareness, and encourage real action.”
The protest highlighted the sharp decline in UK aid for education over the past decade. In 2013, education accounted for 13.5% of bilateral ODA spending, but by 2023, this had plummeted to just 3.5%.
While the UK remains the sixth-largest donor by volume, it now ranks 25th among OECD-DAC countries in prioritisation, falling far behind its international counterparts.
The Send My Friend to School coalition is demanding urgent action from the UK Government, calling for:
• A commitment to protect and reprioritise education aid within ODA spending.
• Full funding for key global education initiatives, including the Global Partnership for Education and Education Cannot Wait.
• Stronger UK support for international tax and debt reforms to help low-income countries sustainably increase their own education budgets.
While aid remains crucial, 87% of education financing in low-income countries comes from domestic sources.
Campaigners argued that the UK has a vital role in ensuring governments have the resources to invest in quality education for all.
The event was part of a wider movement, with Send My Friend to School mobilising 250,000 UK students every year to push for global education rights.
As the UK reassesses its international development priorities, campaigners are urging leaders to reaffirm their commitment to ensuring that education remains central to the country’s foreign aid agenda.
New era of global instability means Government must go further and faster in delivering missions.
PM to take on ‘cottage industry of checkers and blockers slowing down delivery for working people’.
Digital revolution underpins moves to a more agile, effective and active state – refocused on delivering Plan for Change.
Tech and AI teams will drive improvement and efficiency in public services with 2,000 new TechTrack apprentices.
Taxpayer’s money saved by slashing waste on pricey contractors.
Costs of regulation to be slashed for businesses to boost growth that puts more money in working people’s pockets.
The Prime Minister will today set out how he will “go further and faster in reshaping the state to make it work for working people.”
Reflecting on international events of the last few weeks, he will say that national security is economic security, and therefore “the fundamental task of politics right now is to take the decisions needed on national security, to deliver security for people at home.”
The Prime Minister will set out his belief in the power of “an active government that takes care of the big questions, so people can get on with their lives.”
He will share his diagnosis that the state has become bigger, but weaker and isn’t delivering on its core purpose, before outlining his mission to reshape it. He will say that the new global “era of instability” means that the Government must double down in delivering security for working people and renewing our nation.
The intervention follows the Government’s step change in approach to regulation and regulators, following the abolition of the Payments Systems Regulator as the Prime Minister commits to a government wide target to cut administrative costs of regulation by 25%.
New plans announced to support delivery will include new AI and tech teams sent into public sector departments to drive improvements and efficiency in public services. One in 10 civil servants will work in tech and digital roles within the next five years with 2,000 tech apprenticeships turbo charging the transformation.
The moves come as the Government slashes the costs of red tape by a quarter for businesses.
It is expected the Prime Minister will say: “The great forces buffeting the lives of working people, and an era of instability driving in their lives, the need for greater urgency now could not be any clearer. We must move further and faster on security and renewal.
“Every pound spent, every regulation, every decision must deliver for working people…If we push forward with the digitisation of government services. There are up to £45bn worth of savings and productivity benefits, ready to be realised.
“And that’s before we even consider the golden opportunity of artificial intelligence. An opportunity I am determined to seize.”
Fundamentally reshaping the way the British state delivers and serves working people by becoming more tech-driven, productive, agile and Mission focused will be set out alongside further detail on the digitalisation of public services and the wider British state.
The approach will be underpinned by the mantra that “No person’s substantive time should be spent on a task where digital or AI can do it better, quicker and to the same high quality and standard.”
The digitisation will include the sweeping modernisations, a new apprenticeship scheme, TechTrack, will bring 2,000 apprentices into public sector departments by 2030, making sure the UK Government has the skills needed to overhaul public services using tech – creating new opportunities across the country and delivering on the Plan for Change.
DSIT unveiled this week that initial tests of an AI helper for call centre workers included in the bundle, built in partnership with Citizens’ Advice, showed that it could halve the amount of time it takes call handlers to give responses to complex questions on anything from consumer rights to legal support.
Technology Secretary Peter Kyle said: “There is a £45 billion jackpot to secure if we use technology properly across our public sector – but we can’t hope to come close to securing that if we don’t have the right technical talent with us in government.
“Not only will these changes help fix our public services, but it will save taxpayer cash by slashing the need for thousands of expensive contractors and create opportunities across the country across the country as part of our Plan for Change.”
Regulation will be cut back as Starmer sets out his latest steps to drive economic growth
Unnecessary regulation will be cut to boost growth that puts more money in working people’s pockets
Payment Systems Regulator abolished as part of efficiency drive
PM to set out how the Government is securing our future through the Plan for Change
Regulation will be cut back as the Prime Minister sets out his latest steps to drive economic growth that puts more money in working people’s pockets.
The Payment Systems Regulator (PSR) will be abolished as the latest step in reducing the burdens on business.
The Government will set out further steps to reduce red tape in the coming days.
A strong economy is at the heart of the Government’s plan to deliver security and renewal through the Plan for Change.
The PSR – which looks after payment systems like Faster Payments and Mastercard – will mainly be consolidated into the Financial Conduct Authority, making it easier for firms to deal with one port of call.
It follows complaints from businesses that the regulatory environment was too complex – with payment system firms having to engage with three different regulators, costing them time, money and resource.
This has a greater impact on smaller businesses that are trying to scale and grow – as the costs are disproportionately higher for them.
The Prime Minister wants to make regulation work for the UK – and this is the latest step in his drive to create an environment that will kickstart economic growth.
It is only by creating growth that people will see a genuine increase in their living standards – with higher wages and more money in their pocket at the end of the month.
Prime Minister, Keir Starmer said: “For too long, the previous Government hid behind regulators – deferring decisions and allowing regulations to bloat and block meaningful growth in this country.
“And it has been working people who pay the price of this stagnation.
“This is the latest step in our efforts to kickstart economic growth, which is the only way we can fundamentally drive-up living standards and get more money in people’s pockets.
“That’s why it is the priority in the Plan for Change, and it’s why I’m not letting anything get in its way.”
Chancellor, Rachel Reeves, said: “The regulatory system has become burdensome to the point of choking off innovation, investment and growth.
“We will free businesses from that stranglehold, delivering on our Plan for Change to kickstart economic growth and put more money into working people’s pockets.”
This builds on the Government’s deregulatory agenda, which has already:
Lifted the onshore wind ban at the stroke of a pen
Introduced the Planning and Infrastructure Bill
Launched the root and branch review of the water sector
Set financial services regulators on a growth agenda
Set up a review of all environmental regulation
Yesterday’s announcement does not result in any immediate changes to the Payment Systems Regulator’s remit or ongoing programme of work. The regulator will continue to have access to its statutory powers until legislation is passed by Parliament to enact these changes.
In the interim period, the Payment Systems Regulator and the Financial Conduct Authority will work closely to deliver a smooth transition of responsibilities to ensure the market remains competitive.
The entire regulatory landscape will continue to be reviewed and finessed as part of a wider Government effort to kickstart economic growth and make regulators work for the country, rather than block progress.
This is the latest in a line of work to make regulators work for the country. It follows:
A speech from the Prime Minister at the International Investment Summit where he called on the regulatory regime to fit the modern age.
A letter from the Prime Minister, the Chancellor and the Business Secretary – calling on regulators to come up with at least five reforms each that will boost economic growth.
The Chancellor ‘hauling in‘ regulators in January to have these proposals scrutinised.
Tax admin changes to mean up to 300,000 taxpayers will no longer be required to file a tax return
Easier access to tax relief on temporarily imported fine art and antiques often shown in galleries and exhibitions announced, boosting the sector’s international competitiveness.
UK’s tax minister expected to announce these alongside a raft of other measures to help HMRC deliver Plan for Change through securing tax revenue and creating the conditions for growth in speech later today (11 March)
Up to 300,000 people, including those with side hustles, will no longer need to file a Self-Assessment tax return, tax minister James Murray is expected to announce in a speech later today.
This includes people trading clothes online, dog-walking or gardening on the side, driving a taxi, or creating content online.
As part of a bold new package to transform HMRC into a quicker, fairer and more modern body the minister is expected to announce plans to increase the Income Tax Self Assessment (ITSA) reporting threshold for trading income, from £1,000 to £3,000 gross within this parliament.
This will help deliver the Plan for Change by freeing up time for taxpayers helping to create the conditions for economic growth.
This will benefit around 300,000 taxpayers. An estimated 90,000 of them will have no tax to pay and no reason to report their trading income to HMRC in the future at all. Others will be able to pay any tax they owe through a new simple online service. The changes reflect the government’s commitment to driving forward efficiency reform, a key component of its Plan for Change.
Mr Murray, the minister responsible for HMRC, will announce this reform to tax experts hosted by the Chartered Institute of Taxation and the Institute of Chartered Accountants for England and Wales in a speech to mark the 20th anniversary of HMRC.
He will also detail future simplifications to the government’s Temporary Admission customs procedure, to make this relief for temporary imports easier for a range of sectors to use, including art and antiques, often showcased in exhibitions across the UK.
A new digital pilot with the United States to test ways to speed up trade processes for U.S. and UK businesses is also expected to be announced. This pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and secure real-time data transfers. It will look to make it easier and quicker for businesses to request trade benefits from each country.
Minister Murray will also update on the work HMRC is doing to tackle phoenixism – where company directors go insolvent to avoid tax – as well as announcing a new reward scheme to encourage informants to come forward to HMRC about tax fraud.
Exchequer Secretary to the Treasury James Murray said: “From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit.
“Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle.
“We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets.”
Improving HMRC customer services
Since taking office, Murray has been taking teams of senior HMRC officials to meet firms including NatWest, Octopus Energy, Barclays, John Lewis, and Centrica to learn best practice and innovative approaches to modernising and digiting customer service from the private sector.
This includes the use of generative AI and ‘test and learn’ approaches to improving customer service. HMRC is trialling the use of generative AI to point taxpayers to the advice they need on GOV.UK.
In line with practice from banks and other private sector businesses, Murray will announce that HMRC has begun trialling a system where customers can use their voice as their password, to pass security checks faster and more securely.
Following an evaluation of the trial, it is expected to be rolled out across HMRC over the rest of this year. Voice Biometrics strengthen security, safeguard customer data, and reduce call times. Customers’ voice recordings are converted into encrypted biometric data, a voice print, and stored securely in a data centre.
As reforms got underway to automate and digitise its services, HMRC met its target of 85 per cent of calls handled between October and December 2024 and is expected to meet its customer service standards in 2025-26.
As part of this government’s commitment to partner and learn from industry, HMRC will launch a new service to provide an escalation route for agents with Self Assessment and PAYE queries which are over 4 weeks old. A dedicated team of experienced technicians and advisers will adopt a ‘once and done’ approach, taking end-to-end ownership of cases and maintaining regular communication with agents.
Closing the Tax Gap – phoenixism and informants
Since becoming chair of HMRC’s board last year, Exchequer Secretary James Murray has steered the UK tax authority to go further and faster to close the tax gap, in order to raise the revenue required to fund public services and investment projects.
Following the Autumn Budget’s announcement of future work to tackle phoenixism – where rogue directors avoid payment of company tax by going insolvent – Mr Murray will update on the work in his speech. He will lay out how HMRC and the Insolvency Service have agreed a joint plan, which includes an increase to the use of securities, where HMRC asks for upfront payment of tax from new companies, making more rogue directors personally liable for the taxes of their company.
Murray will also announce a new reward scheme for informants to be launched later this year. This will look to target serious non-compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The scheme will take inspiration from the successful US and Canadian ‘whistleblower’ models and will complement the existing HMRC rewards scheme.
Informants could take home a significant amount of compensation. This will be equal to a proportion of the tax take, ensuring that the scheme raises more money that it costs. Work is ongoing within the government regarding what percentage this could be. Further details will be set out in due course.
At the Budget in October, the Chancellor announced an injection of over £1.5bn in HMRC to recruit and fund an additional 5,000 new compliance caseworkers and 1,800 debt collection officers. Minister Murray will announce in his speech that an additional 600 new compliance staff will start work this month. Investment in AI is expected to improve the targeting of compliance work and help make HMRC staff more productive.
This, alongside investment to modernise HMRC systems and legislation to tackle non-compliant tax avoidance and prevent non-compliance will raise £6.5bn per year by 2029/30.
This will help deliver the Plan for Change by securing tax revenue to help fund investment projects to boost growth.
Simplifying Tax Admin and Modernising HMRC
A simple and modern tax and customs system is vital to create the conditions to grow the economy.
Following the commitment in the Autumn to bring forward measures in the Spring to simplify the tax and customs system, the government will today go further to reduce the time businesses spend managing their tax, so they can focus on what matters most to them: growing and being productive.
The minister will announce a future digital pilot with U.S. Customs and Border Protection to test ways to speed up trade processes for UK and U.S. businesses. In 2024, UK-U.S. goods trade was worth a combined £115bn.
The aim is to make supply chains between UK and U.S. businesses more efficient through modernising how HMRC systems, international partners and businesses communicate with each other. The pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and real-time data.
The pilot will include testing the ability to issue and share digital trusted trader credentials between UK and U.S. systems. This would speed up processes for trusted U.S. and UK businesses trading with each other including by making it more easy and efficient to request trade benefits from each country.
Susan S. Thomas, acting Executive Assistant Commissioner of the U.S. CBP’s Office of Trade said: “Modernizing trade processes is essential if we are going to keep pace with today’s trading environment.
“We are taking our operations to the next level, bridging gaps between systems, creating a new era of supply chain transparency and data system flexibility.”
James Murray will announce changes to simplify the tax system. The ITSA trading income reporting threshold will increase from £1,000 to £3,000 gross within this parliament, aligning with the new reporting thresholds for property and “other taxable” income.
This means that up to 300,000 taxpayers will not need to file a tax return. This ranges from people trading vintage clothes, dog-walking or gardening on the side, to driving a taxi or creating content online This will help cut waste, avoid unnecessary worry for customers and improve the conditions needed for them to grow.
Murray will also highlight simplifications to the customs regime to reduce burdens for traders. These include improvements to the Temporary Admission procedure, which relieves import duties for eligible goods that are imported temporarily. For example, the usual time limit for fine art and antiques will increase from 2 to 4 years.
Ellen Milner, Director of Public Policy, Chartered Institute of Taxation said:“We welcome the government’s focus on simplifying the tax system and improving customer service – rightly two key priorities for HMRC as the tax authority heads into its third decade.
“A more straightforward, easy to navigate tax system could free up business owners and managers to focus on growing their businesses, rather than spending their days overcoming bureaucratic hurdles.
“We especially welcome the announcement of a new approach to dealing with slow-moving income tax queries from agents. Hopefully, in due course, this can be expanded to unrepresented taxpayers and to other taxes.”
We have heard this week that the UK Government Chancellor Rachel Reeves intends to make cuts to the welfare bill to bring UK Government borrowing down in line with her fiscal rules ahead of the next OBR forecasts due at the end of the month (writes Fraser of Allander Institute’s EMMA CONGREVE).
Reports state that the axe is likely to fall on health and disability related benefits for working age people.
Here we produce a bit of an explainer to get people up to speed on the benefits in scope and what has been happening in recent years.
Which benefits could be in line for cuts?
There are two types of benefits in Great Britain (benefits in Northern Ireland are arranged differently) that working age people with disabilities and ill health can claim.
Incapacity Benefits
The first type is an income replacement benefit that tops up income for families where the disability or health condition limits their ability to work, commonly referred to as incapacity benefits. They are means tested so that the amount you receive depends on your household income and reduces as income (e.g. from a partner’s earnings) rises.
Chart: Caseload of incapacity benefits for working age adults, Scotland
Notes: Universal credit and ESA exclude those in the assessment phase in line with OBR Welfare Trends Report analysis. Northern Ireland not included.
Sources: DWP, ONS
Universal Credit (UC) has been slowly replacing Employment and Support Allowance (ESA) for this group of people since 2018 so the reduction in ESA over time reflects migration over to UC rather than a change in disability/health status.
Disability Benefits
The second type of support for those with disabilities and ill health comes from payments to cover additional costs, for example due to reduced mobility, and are commonly referred to as disability benefits. They are not means tested and people do work whilst they are on these benefits.
In Scotland this type of benefit is now devolved, with Adult Disability Payment (ADP) slowly replacing Personal Independent Payment (PIP). PIP itself was a replacement for Disability Living Allowance (DLA) which no longer takes new applications and has a caseload that is reducing over time.
Chart: Caseload of disability benefits for working age adults, Scotland
Note: Adult Disability Payment started to replace PIP in Scotland from 2022. In England and Wales, PIP remains the main payment.
Source: DWP, ONS, Social Security Scotland
Which benefits are devolved?
Incapacity benefits (UC and ESA) are reserved benefits which means they largely operate in the same way across Great Britian, with the cost of the benefit in Scotland met by the UK Government. Any cuts made by the UK Government would apply in Scotland.
Disability benefits (PIP. SDA and ADP) are devolved, and there are differences in how the benefits operate in Scotland. The Scottish Government meets the costs of the benefit. To offset this, an amount is paid from the UK Government in the block grant, equivalent to the UK Government’s spending in Scotland if the benefits hadn’t been devolved and if spending had grown at the same per capita rate as in England and Wales.
The Scottish Government has to find additional money if expenditure on Scotland starts to diverge from the rest of GB trend due to policy changes (or perhaps, if our population gets relatively sicker).
Any cuts to PIP or SDA made by the UK Government would not apply in Scotland, but the block grant from UK Government would fall. If the Scottish Government did not replicate the cuts, they would have to find additional money from elsewhere in the Scottish Budget to offset the fall.
What has changed since the pandemic and has it been the same in Scotland as the rest of Great Britain?
As the above charts show, the caseload (the number of people claiming these benefits) has been rising steadily in recent years for both these benefits across GB and is forecast to continue to do so.
The caseload in Scotland has long been higher than in England and Wales due to a higher prevalence of people with disabilities and long-term health conditions.
In recent years, incapacity benefits caseload growth has been slower (49% in Scotland compared to 59% in rGB between May 2019 and August 2024) but due to different levels of population growth caseload per capita (which is the caseload measure shown in the charts) has been slightly higher in Scotland (7% to 11% of working age population compared to 5 % to 8% for rGB).
For disability benefits, the introduction of Adult Disability Payment makes it difficult to compare like-with-like. Although eligibility has remained broadly the same, the application process has been made more accessible and this appears to have led to an increase in people applying following its introduction.
For more detail on this, see this paper from our sister organisation the Scottish Health Equity Research Unit (SHERU). It’s also possible that some people in Scotland delayed making a PIP application to DWP in anticipation of ADP opening for applications.
This may help to explain why, since 2019, the growth in the caseload in Scotland has been only slightly higher than rGB (63% increase in Scotland between May 2019 and Aug 2024 compared to 61% for rGB). In per-capita terms, due to lower population growth in Scotland, the growth has been a bit more significant (increase from 8% of the working age population to 14% in Scotland between May 2019 and Aug 2024, compared to 6% to 9% for rGB).
Do we know why rates have increased?
There are many theories as to why rates have increased but, for a number of reasons, it has been difficult to fully evidence exactly what is going on.
We know from IFS research that rates have increased more in Great Britain than they have in other countries. The IFS also looked at entry and exit rates for disability benefits England and Wales and concluded that around 2/3 of the increase is due to people starting claims and 1/3 is due to fewer people ending their claim.
There are likely to be a number of intersecting factors. We summarise some of these issues below but overall emphasise that we don’t fully know the extent to which these interact.
The working age population is getting older
On average, people’s health deteriorates as they age. With falling birth rates there are currently proportionally fewer younger working age people than older working age people. Coupled with this, pension age changes mean that more older people have become classified as ‘working age’ in recent years. The Resolution Foundation have calculated that an ageing working age population accounts for 1/5 of the rise in caseloads for health-related benefits since the pandemic.
The increases for younger people are concerning but the biggest impact on expenditure would come from tackling ill-health and disability in older age groups
For disability benefits, the growth has been highest in the older working age population, with then broadly comparable rises across other age groups. For incapacity benefits, after the 55-64 age group the second largest rise has come from 25-34 year olds. Growth in the number of young people out of work due to disability and ill health are concerning and needs attention, but if rates are going to come down, focussing on the older generation is key. Whilst we can’t fully attribute the rise to longer waiting times in the NHS, this is likely to be part of the explanation.
Some of the rise may be due to people struggling financially and needing to maximise benefit income
This rise in benefit caseloads has coincided with relatively high rates of inflation and the ‘cost of living crisis’. People struggling financially may have been more likely to make claims during this period compared to previous years when they did not feel they needed the extra income.
There is also some suggestion that people may have switched the type of claim they make for out-of-work benefits to benefit so they can receive a higher level of payment for disability and ill-health related claims. The fact that they are successful in these claims means that people are simply claiming what they are entitled to rather than somehow ‘gaming the system’.
Mental health related claims have grown, but so have claims related to other conditions
The largest absolute rise in claims for disability benefits has been related to mental health conditions, but across Great Britain, there have been rises in a range of physical conditions too (see IFS and SHERU work on this linked above). The extent to which this is due to an increased prevalence of health conditions versus an increased likelihood to claim a health-related benefit is difficult to disentangle.
There has been a rise in the in-work population reporting a disability as well and it may be that people are becoming more comfortable with disclosing mental health conditions. This could mean that people with multiple health conditions are more comfortable with citing mental health as their primary condition in benefit claims now than was previously the case.
We don’t know how much is due to long-covid or longer-term impacts of the pandemic
The extent of available data frustrates efforts to pin down the emergence of new or worsened conditions due to the pandemic and how this has changed people’s financial circumstances (for example, ability to work).
Issues with the official Labour Force Survey have limited the usefulness of the data collected there on reasons for ill health and inactivity (see SHERU blog on this issue here) and qualitative research that is able to produce more in-depth insights usually can’t be scaled up to population level.
As more longitudinal data is made available that tracks people through the period, alongside progress towards more routine data linkage of health records to other administrative data sources such as tax records, we might be able to get a better picture of the intersecting factors that have changed people’s health, benefit and work status in recent years.
What happens next?
The Spring Statement is due on the 26th March. When we know what the proposals are, we’ll be able to unpick what this will mean for people in Scotland and for Scottish Government budgets.
Whilst cuts to welfare spending may help in the short term, longer term solutions are tied up with efforts to improve both living standards and the ability of public services to support people further upstream (for example, through the NHS and employability services) which can reduce their need to recourse to the social security system.
Any decision to make cuts could come with fiscal risks. Cutting benefits for people already experiencing ill health and disability could make their conditions worse and increase demand for public services and/or lead to longer-term reliance on non-health related benefits.
A recent BBC verify article also provides a note of caution: reducing spending on the welfare bill is historically difficult and estimates of savings are often not achieved.
As well as looking at the details of the cuts, we’ll be looking at what the OBR say regarding their effectiveness of cutting UK Government spending with a keen eye.
JOBS FOR THE GIRLS? Harriet Harman to champion gender equality worldwide as new UK Special Envoy for Women and Girls
Harriet Harman announced as new UK Special Envoy for Women and Girls.
Appointment underlines the UK’s ongoing commitment to empowering women and girls around the world.
New role will help champion gender equality worldwide and help deliver global economic growth as part of UK government’s Plan for Change.
The Foreign Secretary has today appointed Harriet Harman as the new UK Special Envoy for Women and Girls. She will begin her appointment on International Women’s Day (Saturday 8 March 2025).
For International Women’s Day 2025, this Government is accelerating action to change women’s lives.
This plan is built on the foundations of our Plan for Change for this country to have a strong economy.
Creating opportunities for working women runs through the milestones of this government: from breaking down the barriers to opportunity which have held women back, making our streets safer, to rebuilding our public services and delivering growth that can be felt across every part of the country.
The government is supporting stability overseas to help deliver these milestones. In her role as Envoy, Harriet Harman will coordinate efforts across the globe to ensure women and girls are empowered and have their rights protected, including sexual and reproductive health and rights, access to education, and freedom from gender-based violence.
Throughout her career, Harriet Harman has been a vocal advocate for women and girls, including on issues such as women’s political representation, maternity rights, and tackling violence against women and girls.
In her previous role as Solicitor General, Harriet led a successful drive within Government to make tackling domestic violence a priority.
The campaign led to the introduction of a new law – the Domestic Violence Crime and Victims Act – to ensure more effective prosecutions for domestic violence and a new network of 60 specialist domestic violence courts.
Harriet’s appointment underlines the UK’s ongoing commitment to empowering women and girls in the UK and around the world.
Foreign Secretary David Lammy said: “I am delighted to appoint Harriet Harman as the new UK Special Envoy for Women and Girls.
“Accelerating action on equality for women and girls is vital to delivering the global economic growth we need and, a safer, more secure world.
“Harriet has spent her career championing women’s rights and gender equality. Her record of achievement and personal commitment make her a formidable advocate for the rights and empowerment of women and girls around the world.”
Minister for International Development Baroness Chapman said: “Harriet Harman is a legend on women’s rights and is rightly regarded as a pioneer and an inspiration to women in the UK and across the world, including me.
“I am thrilled she has been appointed Special Envoy, and I look forward to working with her on protecting hard-won rights and creating more opportunities for women”
Special Envoy for Women and Girls Harriet Harman said: “Over the last decades we have made tremendous strides towards ending women’s inequality. But the job is far from done. Women and girls are still not equal, and many still face oppression, violence and discrimination.
“It’s a great honour to have been appointed UK Special Envoy For Women and Girls and look forward to driving this important work.
“The UK will, in coalition with women around the world, play a key role in standing up for the rights of all women and girls at a critical time.”
