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.”
Sunday 9 March 2025 is the Day of Reflection across the UK for the COVID-19 pandemic.
It is an opportunity to come together to remember those who lost their lives since the pandemic began and to honour the tireless work and acts of kindness shown during this unprecedented time.
2025 marks five years since the pandemic began and we continue to honour and remember those affected.
People and communities are invited to come together on the COVID-19 Day of Reflection, to mark the day in ways that feel meaningful to them.
The UK Commission on Covid Commemoration was set up to find appropriate ways to remember those who lost their lives since the pandemic began, and to explore how we mark this period of our history.
The Commission held an in depth consultation with those most impacted by the pandemic, including representatives from bereaved family organisations. In September 2023 it published its final report, recommending an annual UK-wide day of reflection.
By continuing to hold a Day of Reflection, in line with previous years, we hope to offer communities across the country the opportunity to join together in commemoration of those who lost their lives.
On Sunday 9 March 2025, people are invited to:
remember and commemorate those who lost their lives since the pandemic began
reflect on the sacrifices made by many, and on the impact of the pandemic on us all
pay tribute to the work of health and social care staff, frontline workers and researchers
appreciate those who volunteered and showed acts of kindness during this unprecedented time
Work will be unlocked for thousands of sick and disabled people through new measures that will bolster the support offered in Jobcentres and make the welfare system more sustainable, the Department for Work and Pensions has announced today
New plans to improve employment support brought forward ahead of wider reform package to fix broken welfare system.
1,000 work coaches deployed to deliver intensive employment support to sick and disabled people as part of the government’s Plan for Change which will break down barriers to opportunity.
It comes as a new survey reveals scale of the broken system with nearly half of disabled people and those with a health condition saying they don’t trust DWP to support them.
The plans will see 1,000 existing Work Coaches deployed in 2025/26 to deliver intensive voluntary support to around 65,000 sick and disabled people – helping them to break down barriers to opportunity, drive growth and unlock the benefits of work.
This intensive support for people on health-related benefits – including those furthest away from work – will see Work Coaches providing tailored and personalised employment support, and help claimants access other support such as writing CVs and interview techniques. They will also access a range of DWP employment programmes to help claimants unlock work based on conversations with their Work Coaches.
The additional help will be delivered by reprioritising work coach time so they can focus on tackling economic inactivity in order to make the welfare system more sustainable. The 1,000 redeployed Work Coaches are a “downpayment” on wide-ranging plans to overhaul employment support, which are set to be unveiled in just a few weeks’ time.
It is part of the Government’s Plan for Change – which will boost living standards and grow the economy by unlocking work for the 2.8 million people who are economically inactive due to long-term sickness – the highest in the G7 – and bring down spending on incapacity benefits which is expected to reach £70 billion by the end of this parliament.
It comes as new survey results show the current system isn’t just failing the taxpayer, it’s also failing the people it’s meant to help, with 44% of disabled people and people with a health condition believing DWP does not provide enough support to people who are out of work due to disability, ill health, or a long-term health condition.
Work and Pensions Secretary, Rt Hon Liz Kendall MP said: “We inherited a broken welfare system that is failing sick and disabled people, is bad for the taxpayer, and holding the economy back.
“For too long, sick and disabled people have been told they can’t work, denied support, and locked out of jobs, with all the benefits that good work brings.
“But many sick and disabled people want and can work, with the right support. And we know that good work is good for people – for their living standards, for their mental and physical health, and for their ability to live independently.
“We’re determined to fix the broken benefits system as part of our Plan for Change by reforming the welfare system and delivering proper support to help people get into work and get on at work, so we can get Britain working and deliver our ambition of an 80% employment rate.”
The data from the DWP Perceptions Survey – soon to be published in full – also shows:
35% of disabled people and people with a health condition believe DWP does not provide enough support to people of working age who are out of work, to help them get back into work.
44% of disabled people and people with a health condition don’t trust the DWP to help people reach their full career potential.
Nearly 2 in 5 (39%) disabled people and people with a health condition do not trust DWP to take its customers’ needs into account in how it provides services.
These figures follow recently released data which shows that there are over three million people on Universal Credit with no obligation to engage in work-related activity, despite over a quarter (27%) of health and disability benefit claimants believing that work could be possible in the future if their health improves and 200,000 saying they would be ready to work now.
Data also shows the number of working-age people on the health element of Universal Credit or claiming Employment Support Allowance (ESA) has risen to 3.1 million, a staggering 319% increase since the pandemic, reflecting the alarming rate at which young and working aged people are increasingly falling out of work and claiming incapacity benefits.
Behind each of these statistics is a person with hopes and ambitions, who can provide businesses with much-needed skills and experience, helping to grow our economy.
To give people the support they deserve, and restore trust and fairness to our welfare system, reforms to the welfare system are expected to be announced in just a few weeks.
These reforms will recognise that some people will be unable to work at points in their life and ensure they are provided with support while transforming the broken benefits system that:
Asks people to demonstrate their incapacity to work to access higher benefits, which also then means they fear taking steps to get into work.
Is built around a fixed “can versus can’t work” divide that does not reflect the variety of jobs, the reality of fluctuating health conditions, or the potential for people to expand what they can do, with the right support.
Directs disabled people or those with a work-limiting health condition to a queue for an assessment, followed by no contact, no expectations, and no support if the state labels them as “unable” to work.
Fails to intervene early to prevent people falling out of work and misses opportunities to support a return to work.
Pushes people towards economic inactivity due to the stark and binary divide between benefits rates and conditionality rules for jobseekers compared to those left behind on the health element of Universal Credit.
Has become defined by poor experiences and low trust among many people who use it, particularly on the assessment process.
The government’s plans to fix the broken benefit system will build on the biggest employment reforms in a generation announced in the Get Britain Working White Paper, which will empower mayors to drive down economic inactivity, deliver a Youth Guarantee so every young person is either earning or learning, and overhaul jobcentres across the country.
Former John Lewis boss Sir Charlie Mayfield is leading an independent review investigating how government and employers can work together to help disabled people and those with ill health who may be at risk of falling out work stay on in employment, with the findings of the discovery phase expected in the spring.
The government is also investing an additional £26 billion to cut NHS waiting lists and get Britain back to health and back to work.
The government has already delivered on its pledge, providing two million extra appointments in five months and as a result, around 160,000 fewer patients on waiting lists today than in July.
Teams of clinicians will also introduce new ways of working at 20 hospital sites in areas with the highest levels of economic inactivity to help patients return to the workforce faster.
This is alongside the recruitment of an additional 8,500 mental health workers to ensure mental health is given the same attention as physical health.
The Westminster Government will today table amendments to the Employment Rights Bill
The Government has laid amendments to the Employment Rights Bill following weeks of consultation with business groups and unions.
The Bill will support the Government’s mission to increase productivity and create the right conditions for long-term sustainable, inclusive, and secure economic growth, delivering on the Plan for Change.
Improving workers’ rights is a key element of the government’s Plan for Change by putting more money in people’s pockets, improving working people’s day to day lives and delivering real life improvements felt by working people.
The Government yesterday tabled amendments to the Employment Rights Bill following weeks of consultation and responses from business groups, trade unions and wider civil society.
The Labour government says these amendments demonstrate the Government’s commitment to working in partnership with businesses and trade unions to ensure the plan to Make Work Pay is firmly pro-business and pro-worker.
Responses to five consultations ranging from zero-hours contracts to Statutory Sick Pay will also be published which show how the Government has listened to the views of stakeholders.
The Government’s Plan to Make Work Pay is a core part of the mission to grow the economy, raise living standards and create opportunities for people across the country. These amendments will deliver on the Plan for Change by tackling the low pay, poor working conditions and poor job security that has been holding the UK economy back.
This landmark Bill will extend the employment protections already given by the best British companies to millions more workers. This will put the UK back in step with competitors in other advanced economies, who are already acting to adapt to the changing world of work.
The Bill’s impact assessment, which was published last year, showed that many of the policies within the Employment Rights Bill could help support the Government’s Mission for Growth.
It concluded that that the package could have “a positive but small direct impact on economic growth” and will “help to raise living standards across the country and create opportunities for all.” This is the result of a pro-business, pro-worker, approach which is going to help usher in a decade of national renewal.
Deputy Prime Minister Angela Rayner said: “For too long millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity.
“We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs.
“We have been working closely with businesses and workers to progress this landmark bill and deliver our Plan for Change – unleashing growth and making work pay for everyone.”
Business Secretary Jonathan Reynolds said: “Past Governments’ low growth and low productivity economy simply did not deliver what the UK needs, which is why we are choosing stability, investment and reform, not chaos, austerity and decline. This is why our mission to grow the economy as part of our Plan for Change is based on putting more money in working people’s pockets by making wages fairer and work more secure.
“Many businesses already have worker friendly practices in place and can attest to the positive impact they have on retention, productivity and job satisfaction. We want to go further and untap the UK’s full potential by attracting the best talent and giving business the confidence to hire to help the economy grow.”
The amendments set out later today carefully consider different views and needs of workers, businesses and the whole economy and looks to deliver measures that support the mutual interests required to drive a growing, modern economy.
The government says they are delivering reform through the Plan for Change to create a decade of national renewal, meaning increased living standards across every part of the UK and putting politics back in the service of working people.
They come following responses received to five Government consultations:
Application of zero hours contracts measures to agency workersAll workers, including up to 900,000 agency workers in the UK, should be able to access a contract which reflects the hours they regularly work. These amendments will ensure that agency work does not become a loophole in our plans to end exploitative zero hours contracts. They will offer increased security for working people to receive reasonable notice of shifts and proportionate pay when shifts are cancelled, curtailed or moved at short notice – whilst retaining the necessary flexibility for employers in how they manage their workforces.
Strengthening remedies against abuse of rules on collective redundancyThe Government will increase the maximum period of the protective award from 90 days to 180 days and issue further guidance for employers on consultation processes for collective redundancies. Increasing the maximum value of the award means an Employment Tribunal will be able to grant larger awards to employees for an employer’s failure to meet consultation requirements. We want to enhance the deterrent against employers deliberately ignoring their collective consultation obligations and ensure it is not financially beneficial to do so.
Creating a Modern Framework for Industrial RelationsThe government is updating the legislative framework in which trade unions operate to align it with modern work practices. We are ensuring industrial relations are underpinned by collaboration, proportionality, accountability, and a system that balances the interests of workers, businesses and the wider public, with further details in the consultation response.
Strengthening Statutory Sick PayThe Government will ensure the safety net of Statutory Sick Pay is available to those who need it the most, making it a legal right for all workers for the very first time. Up to 1.3 million employees on low wages who find themselves unable to work due to sickness will either receive 80 per cent of their average weekly earnings or the current rate of Statutory Sick Pay – whichever is lower. We are also ensuring employees have a right to Statutory Sick Pay from the first day of sickness absence, so they are able to take the time off they need to recover and stay in work rather than risk dropping out altogether. The changes will also reduce the amount of people going to work when ill and therefore the spread of infections in the workplace – boosting productivity and benefiting businesses.
Tackling non-compliance in the umbrella company marketThe Government will act to ensure that workers can access comparable rights and protections when working through a so-called umbrella company as they would when taken on directly by a recruitment agency. Enforcement action can be taken against any umbrella companies that do not comply.
A strong package of workers’ rights and protections goes hand in hand with a strong economy because a secure workforce will be more productive and have more confidence to spend in the economy. This contributes to growth – both through the work that people do, and the money that they spend.
As well as creating protections for people at work, the Government is determined to create a modern economy that works for businesses and workers alike. We are delivering these reforms collaboratively, pragmatically, and in a reasonable timeframe where businesses can prepare.
For businesses to thrive they must operate on a level playing field. The Fair Work Agency will take strong action against rogue employers that exploit their workers, and it will provide better support to the majority of businesses who want to do right by their staff.
The Government says they will continue to hold continuous extensive engagement as they develop their Plan to Make Work Pay and as the details of these polices are developed.
Paul Nowak, TUC General Secretary said: “Everyone deserves security and respect at work. These common-sense reforms will improve the quality of jobs in this country, boost growth and put more money into people’s pockets.
“Policies like banning exploitative zero-hours contracts, ensuring protection from unfair dismissal from day one, and tackling ‘fire and rehire’ are long overdue and necessary.
“This is about creating a modern economy that works for workers and business alike. Driving up employment standards in Britain will stop good employers from being undercut by the bad and will mean more workers benefit from a union voice.”
Interim Acas CEO, Dan Ellis, said: “Acas is committed to making working life better for everyone in Britain and we welcome the Government’s focus on improving workplace relations.
“The Government has made some new amendments to the Employment Rights Bill that impacts agency workers, statutory sick pay rules and employers that want to make 20 or more employees redundant.
“The Bill is currently going through Parliament and is subject to further debate and revisions. We will continue to work with the Government and partners to support businesses and workers to prepare for the new law changes.”
Jane Gratton, Deputy Director of Public Policy at the BCC, said: “Employers will be relieved to see some amendments, at what is clearly a milestone moment for Government.
“It has consulted business – and this is reflected in some of the decisions on the future shape of the legislation. There is much here to welcome as sensible moves that will help ensure that employment works for both the business and the individual, including the nine-month statutory probation period and the promise of a light touch approach, as well as simplifying rules on collective consultation.
“But businesses remain cautious, and it is important to continue ensuring the Bill strikes the right balance. Employers will look forward to hearing, engaging with and shaping further detail.
“The government must continue its positive approach to engagement with firms and remain open to changes. Doing so will ensure this legislation is proportionate, affordable, and right for both firms and their employees.”
Centrica Group Chief Executive, Chris O’Shea said: “We are fully supportive of this legislation. This isn’t just the right thing to do—it’s a foundation for the high-growth, high-skill economy the UK needs.
“While no one business has all the answers, our experience at Centrica shows that our business thrives when our people thrive – so stronger rights for workers mean stronger businesses, and that’s a win for everyone.
“As we look to invest billions in green energy, nuclear, and hydrogen storage, having a skilled and engaged workforce is critical to delivering on the UK’s energy security and net zero ambitions. The Government’s wider growth and energy missions rely on businesses and workers pulling in the same direction—I hope this Bill helps make that possible.”
Julie Abraham, CEO of Richer Sounds said: “At Richer Sounds, we have always put the treatment and wellbeing of our colleagues at the forefront of everything we do. Any responsible business will know that well-treated and well-paid colleagues will be beneficial in numerous ways.
“Happy colleagues are likely to be more productive. This also leads to reduced stock loss and higher staff retention, which in turn, minimises recruitment and training costs, not to mention disruption to established teams.
“We support any government legislation that will help end exploitative working practices and improve the lives of working people.”
Ann Francke OBE, Chief Executive Officer of the Chartered Management Institute (CMI), said: “The Employment Rights Bill represents a significant step forward in improving conditions for the UK’s workforce. Many of these measures reflect what successful, responsible and forward-looking employers are already doing.
“CMI has welcomed the Government’s collaborative approach in progressing this Bill, working alongside both businesses and unions to find the balance needed. The real key to success, however, will be the ability of skilled managers to implement these changes, ensuring they get it right and can deliver growth and productivity benefits for organisations whilst ensuring individuals are treated fairly.
“We look forward to working closely with the Fair Work Agency to ensure managers and leaders are equipped with the skills they need to navigate this milestone piece of legislation.”
Simon Deakin, Professor of Law, University of Cambridge said: “The research we have done in Cambridge shows that on average, strengthening employment laws in this country in the last 50 years has had pro-employment effects.
“The consensus on the economic impacts of labour laws is that, far from being harmful to growth, they contribute positively to productivity. Labour laws also help ensure that growth is more inclusive and that gains are distributed more widely across society.”
Claire Costello, Chief of People and Inclusion Officer – Co-op: “The Co-op support the Government’s ambitions to strengthen rights for workers through the Employment Rights Bill.
“It’s our belief that treating employees well – a key objective of this Bill – will promote productivity and generate the economic growth this country needs.”
Neil Carberry, CEO of Recruitment & Employment Confederation, said: “Regulating the umbrella market closes a loophole in addressing non-compliance.
“Recruiters have long called for regulations that ensure a level playing-field. Like all aspects of the Government’s changes, proper enforcement will be key to protecting both businesses and workers.”
The Prime Minister will intensify his efforts in pursuit of a just and lasting peace in Ukraine by convening international leaders at a summit in London today
Prime Minister Sir Keir Starmer will intensify his efforts in pursuit of a just and lasting peace in Ukraine by convening international leaders at a summit in London today.
The Prime Minister has this weekend reiterated his unwavering support for Ukraine and is determined to find a way forward that brings an end to Russia’s illegal war and guarantees Ukraine a lasting peace based on sovereignty and security.
The summit rounds off a week of intense diplomacy for the Prime Minister, which has seen him raise UK defence spending and travel to Washington D.C. for productive talks with President Trump in support of UK and European security. The Prime Minister spoke again with both President Trump and President Zelenskyy on Friday evening following the events of yesterday at the Presidents’ meeting in Washington D.C.
The Prime Minister will welcome Italy’s Prime Minister Giorgia Meloni to Downing Street this morning, before being joined at the summit in central London by the leaders of Ukraine, France, Germany, Denmark, Italy, Netherlands, Norway, Poland, Spain, Canada, Finland, Sweden, Czechia and Romania. The Turkish Foreign Minister, NATO Secretary General and the Presidents of the European Commission and European Council will also attend.
The Prime Minister has been clear that there can be no negotiations about Ukraine without Ukraine, a determination he reiterated when he warmly welcomed President Zelenskyy to Downing Street on Saturday evening ahead of the summit.
Discussions at the summit will focus on:
Strengthening Ukraine’s position now – including ongoing military support and increased economic pressure on Russia.
The need for a strong lasting deal that delivers a permanent peace in Ukraine and ensures that Ukraine is able to deter and defend against future Russian attack.
Next steps on planning for strong security guarantees.
Following the announcement earlier this week that the UK will spend 2.5% of its GDP on defence by 2027, the Prime Minister will be clear on the need for Europe to play its part on defence and step up for the good of collective security.
The UK has already been clear it is willing to support Ukraine’s future security with troops on the ground.
Prime Minister Keir Starmer said: “Three years on from Russia’s brutal invasion of Ukraine, we are at a turning point.
“Today I will reaffirm my unwavering support for Ukraine and double down on my commitment to provide capacity, training and aid to Ukraine, putting it in the strongest possible position.
“In partnership with our allies, we must intensify our preparations for the European element of security guarantees, alongside continued discussions with the United States.
“We have an opportunity to come together to ensure a just and lasting peace in Ukraine that secures their sovereignty and security.
“Now is the time for us to unite in order to guarantee the best outcome for Ukraine, protect European security, and secure our collective future.”
UK reinforces support for Ukraine with £2.26 billion loan
The £2.26 billion loan will bolster Ukrainian military capability, and will be paid back using profits generated on sanctioned Russian sovereign assets.
Chancellor Rachel Reeves and Ukrainian Finance Minister Sergii Marchenko signed the formal loan agreement yesterday (Saturday 1 March), with the first tranche of funding expected to reach Ukraine later next week.
The loan demonstrates the UK’s commitment to Ukrainian defence. A strong Ukraine is vital to UK national security – the first duty of any government and central to the Plan for Change.
Chancellor Rachel Reeves and Ukraine’s Finance Minister Sergii Marchenko have signed the UK-Ukraine Bilateral agreement.
This agreement will deliver £2.26 billion in funding to Ukraine, which will be paid back using the extraordinary profits generated on sanctioned Russian sovereign assets held in the EU.
This is the UK’s contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme, through which G7 countries will collectively provide $50 billion to support Ukraine.
Chancellor of the Exchequer Rachel Reeves said:“A safe and secure Ukraine is a safe and secure United Kingdom. This funding will bolster Ukraine’s armed forces and will put Ukraine in the strongest possible position at a critical juncture in the war.
“It comes as we have increased our defence spending to 2.5% of GDP, which will deliver the stability required to keep us safe and underpin economic growth.”
The loan will be fully earmarked for military procurement to bolster Ukraine’s defences, with the first tranche of funding expected to be disbursed to Ukraine next week.
Russia’s obligation under international law to pay for the damage it has caused to Ukraine is clear and this G7 agreement, backed by the profits generated on sanctioned Russian sovereign assets, is an important step to ensuring this happens.
The funding will be delivered in three equal annual payments of £752m.
The announcement of the loan agreement is on top of the £3 billion a year commitment by the UK to provide military aid for Ukraine. The Prime Minister has been clear that a strong Ukraine is vital to UK national security.
This loan follows the announcement by the Prime Minister committing the Government to increase UK defence spending to 2.5% of GDP by 2027, with an ambition to spend 3% of GDP on defence in the next parliament as economic and fiscal conditions allow.
This represents the biggest sustained increase in defence spending since the Cold War, safeguarding our collective security and funding the capabilities, technology and industrial capacity needed to keep the UK and our allies safe for generations to come.
As set out in the Plan for Change, national security is the first duty of the government, and investment in defence will protect UK citizens from threats at home while also creating a secure and stable environment for economic growth.
Changes in family spending – which Westminster’s Climate Change Committee (CCC) forecast will ultimately save the average household £1,080 a year in 2050 – will be the key to the next phase in Britain’s decarbonisation drive, but policy must ensure these gains are shared with poorer families, the Resolution Foundation said this week.
The CCC’s Seventh Carbon Budget shows that households cannot continue spending in the same way, with close to half of emissions reductions needed by 2040 made by changes to spending on surface transport (27 per cent), home upgrades (14 per cent), and flying (5 per cent).
The scenarios set out show that these changes should benefit families in the form of net savings in every year from 2026. The Foundation calculates that by 2050, the poorest fifth of households could see the share of their spending that goes on energy bills and driving cut by 6 percentage points.
But while the net zero transition will bring savings overall, there are also costs to switching to new technologies, particularly heat pumps, which the CCC estimate will still cost three times more a year than a gas boiler in 2050. And without government support, high upfront costs risk locking lower-income families out of the future savings that net zero will bring.
The Foundation notes that the poorest fifth of households currently have only 9 per cent of electric vehicles, while over the past decade heat pumps were more than twice as likely to be installed in the richest neighbourhoods than the poorest ones.
A successful net zero transition must ensure the costs and benefits are spread fairly. The CCC analysis suggests that a household without a car in the lowest-income quintile would save nothing, while a richer car owning household would see average benefits of £1,400 a year.
The Government should therefore look at ways of smoothing the transition by helping poorer families with the additional costs of heat pump installation and by designing fair alternatives to taxes like Fuel Duty.
Zachary Leather, Economist at the Resolution Foundation, said:“The CCC’s report highlights how the next phase of Britain’s decarbonisation drive will directly affect families’ day-to-day lives.
“While politicians fret and argue about the cost of net zero, today’s report shows that there are long-term benefits for consumers and the environment.
“But the high upfront costs of net zero technologies like EVs and heat pumps risk locking lower-income households out of the savings that they bring in the long run.
“A successful transition will require Government to get serious about supporting lower-income households in accessing heat pumps and EVs.”
