£60 million fund launched to transform employment support

Businesses, charities and innovators are being invited to compete for a share of up to £60 million to transform how disabled people and those with health conditions are supported into work, the Government has announced today [14th July].

  • Businesses, charities and organisations to bid for up to £60 million to fund innovative ideas to support disabled people move closer and into work.
  • Expert panel – including Paralympian Tanni Grey Thompson – to help design the fund and shortlist best ideas
  • Comes as part of £3.5 billion employment support package to knock down barriers to opportunity for disabled people and those with health conditions.

The Government’s Pathways to Work Innovation Fund is a ‘call to action’ for the private, voluntary and public sectors to come forward with the most ambitious, creative ideas to help disabled people and those with health conditions get into and on at work.

The Fund will open for bids in September, with organisations across the UK invited to compete for funding to test genuinely new approaches to employment support.

With 2.8 million people currently out of work due to ill-health, and the Keep Britain Working review estimating economic inactivity caused by health conditions costs the UK economy £212 billion a year, the Government is looking to work alongside business, charities, tech innovators and disabled people themselves to tackle the issue and improve employment support.

The Fund forms part of the Government’s commitment to break down barriers to opportunity for disabled people backed by £3.5 billion in tailored employment support. This includes intensive, one-to-one job help from specialist advisers in their own communities, meeting people where they are, alongside a joined-up work and health offer.

https://twitter.com/DWPgovuk/status/2075852621819064804/video/1

Work and Pensions Secretary Pat McFadden said: “We inherited a welfare system which has locked too many disabled people and those with health conditions out of work.

“We’re determined to ensure no talent is left behind, and that people are given the support they need. Through our £3.5 billion Pathways to Work employment support offer, we’ve seen that personalised support can be life-changing.

“Now we’re calling on business, disabled people and charities to work with us, and bring forward their ideas to transform employment support.”

An expert panel – including Paralympian Tanni, Baroness Grey-Thompson – will help shape the fund’s design and advise on which bids should be funded, ensuring the voices and experience of disabled people are placed at the very heart of the process.

It comes as the Department is embracing innovation by using technologies including AI and machine learning to deliver more efficient services, modernise systems and support more people into work, including a new tool to help people into jobs.

Paralympian and Member of House of Lords, Tanni, Baroness Grey-Thompson, said: “I am delighted to be joining this expert panel at such an important moment. Finding and sustaining work matters enormously – not just for individual wellbeing and independence, but for society as a whole.

“We know that with the right support, disabled people can and do thrive in the workplace.

“The world is changing rapidly, and the systems that support disabled people must keep pace with that change. This Fund is a real opportunity to back the bold, creative ideas that can make that happen.”

To mark the launch, the Work and Pensions Secretary will today visit TechUK, the UK’s leading technology trade association, where he will meet with their members at a tech and innovation showcase to see cutting-edge innovation in action and discuss how technology can help transform people’s working lives.

The new approach comes alongside wider Government action to help people into work and fulfil their full potential, as part of reforms to the broken welfare system this government inherited, including:

  • Rebalancing Universal Credit to remove the perverse incentives that push people away from work.
  • Introducing a Right to Try Work Guarantee, giving everyone who can work the chance to do so without fear of losing their benefits.
  • Investing £3.5 billion in tailored employment support for sick or disabled people.
  • Increasing face-to-face assessments for health benefits.
  • Tackling fraud and error in the benefits system, saving £14.6 billion over this Parliament
  • Alan Milburn is due to bring his final recommendations later this year on tackling the barriers young people face, and the Timms review is looking at how to make sure PIP is fit and fair for the future.

Antony Walker, Deputy CEO of TechUK, said: “The announcement that the Department for Work and Pensions is investing into an Innovation Fund is very welcome. Thousands of disabled people and those with health conditions are locked out of the workforce, not for lack of talent, but because of barriers that persist across many careers.

“Our members are already developing and deploying innovative technologies that are breaking down those barriers, helping people to find work, stay in work and thrive in their careers.

“This investment has the potential to build on that success, accelerating the adoption of proven solutions and supporting even more disabled people to access rewarding employment while helping employers tap into a wider pool of talent.”

The Pathways to Work Innovation Fund will open for bids in September 2026. Full details on how to apply will be published in due course.

Report backs benefit boost for 66-year-olds amid State Pension age rise

The cross-party Work and Pensions Committee has backed calls for the Government to increase Universal Credit for 66-year-olds to prevent hardship as the State Pension age rises to 67, in a report published yesterday.

Temporary support urged for pre-pensioners

The Transition to State Pension Age report, says the Government should consult on the change with a view to implementing it by the end of 2026 as a temporary measure, allowing time to develop longer-term support.

The State Pension age is already being gradually increased and will reach 67 by April 2028. A growing number of 66-year-olds may have to rely on the £425-a-month standard rate of Universal Credit for longer, despite worsening health. Pension Credit, which guarantees £1,031 a month, is only available once they reach State Pension age.

This leaves many pre-pensioners, particularly those with health issues, caring responsibilities or long histories in labour-intensive jobs, relying on the savings they may have set aside for retirement until they reach the State Pension age.

Rising poverty and uneven health outcomes

The Committee warns that when the State Pension age last rose in 2020, poverty more than doubled among people in the year approaching it, rising from 10% to 24%, putting 100,000 below the poverty line. With people now waiting a further year, and many already frail, the “impact is likely to be greater this time”.

Meanwhile, only 42% of 66 year-olds are in paid work, while almost a quarter (24%) of the poorest 60-65 year-old pre-pensioners are working while frail, which research has shown deepens health problems. 

Giving further support through Universal Credit to 66-year-olds would cost £600 million of the potential £10.5 billion savings made from the rise. While the impact on efforts to boost employment may be a consideration, the report says, “impact on work incentives being outweighed by the imperative to reduce poverty”.

Concerns over outdated evidence base

In the report, MPs on the Committee raise concerns about “poor policymaking”, after hearing that the most recent impact assessments for the State Pension age increase are more than a decade-old (2011 and 2013), and none are planned until after the rise is complete. This has caused a “significant gap in the Government’s understanding” of the impact of the rise.

They added that “an opportunity to inform mitigations has been missed” after the Government failed to act on committee recommendation last year in its Pensioner Poverty report to conduct an impact assessment ahead of the State Pension age rise.

Work and Pensions Committee Chair Debbie Abrahams said: “We can’t just allow people who are already struggling as they approach pension age to be forced to choose between continuing work in poor health or prolonging their poverty as they wait for their State Pension to kick in. 

“This is not the later life that anyone wants or to see their loved ones endure after providing for decades.

“We should recognise that pre-pensioners have greater needs and greater barriers into employment due to ill-health, age discrimination, lack of opportunity to upskill. More than half of people are not in paid work in their mid-60s, and they’re not likely to get it if they’ve been effectively written off.

“Additional social security payments are essential in reducing the compounding effects of the lottery of life and the state pension age increase.

“The harm has already been done for some planning retirement if policymakers are using out-dated impact assessments in making the changes they are. As a result, we know there will be an impact, but we don’t know how big it will be.

“But it’s not too late; if the Government takes action quickly those who face poverty because they deplete their savings before reaching pension age can be helped.”

Foreign Affairs Committee: “unanswered questions” over Mandelson vetting

Report:  The appointment of Peter Mandelson as British Ambassador to the United States

Read the report [HTML]

Despite hours of testimony and the unprecedented release of over 1,500 pages of documents through the Humble Address, unanswered questions remain over how Peter Mandelson’s appointment as British Ambassador to the United States of America was allowed to go ahead, a report by the Foreign Affairs Committee finds.

It concludes that it is “difficult to understand how Peter Mandelson was appointed if he were a perceived risk to national security” with the Committee finding “no evidence” of what the mitigations in place were.

Process was not followed and the usual checks and balances were not made, the report concludes. The Committee calls for no public appointments to be announced or made without the appropriate security clearance first being granted. 

Today’s report calls for a Foreign Affairs Committee veto on political appointments to Heads of Mission posts, and a compulsory pre-appointment hearing with the Committee.

Messages published as part of the Humble Address show the dismissive view held about the need for security clearance for Peter Mandelson to take up this post, as though officials were looking for reasons not to bother with vetting.

The report finds that record keeping throughout this process has been appalling and there is no audit trail of the decision-making which led to this appointment. The Committee concludes that the Civil Service Code has been failed.

The report sets out reforms to security vetting and due diligence:

  • When a Prime Minister wishes to make a specific appointment, they should always build in time to consult the Head of Diplomatic Service and the Foreign Secretary.
  • The Cabinet Office, in consultation with the Foreign, Commonwealth and Development Office, should set out a process for political appointments
  • The due diligence report must be shared with the hiring department, and the department must be given the opportunity to contribute fully to the due diligence. 

Chair of the Foreign Affairs Committee, Dame Emily Thornberry MP, said: “Despite my Committee’s extensive scrutiny and evidence gathering, and the thousands of pages published via the Humble Address, there are still unanswered questions as to how someone so clearly unfit was appointed British Ambassador to the United States.

“Processes were rushed or simply not followed. The usual checks and balances were not made. Vital security checks, integral to our national security, seemed to be viewed as a nuisance.

“Mandelson’s appointment was an unmitigated disaster for the country. It should never have been allowed to happen, and it cannot ever be repeated. To prevent anything similar from happening again, no public appointments should be made without security vetting having already taken place.

“With the appointment announced, Mandelson on the payroll, and constant pressure from No. 10, it is no wonder that some civil servants in the Foreign Office felt the appointment was a forgone conclusion.

“But when our nation’s security is at stake, there can be no exceptions made, regardless of the individual’s public profile or sense of pressure. The lack of record keeping in particular is utterly astounding and a clear failure to abide by the Civil Service Code.”

“We are where we are, in part, because decisions were taken behind closed doors, with little to no external scrutiny. High-stakes political appointments to diplomatic positions need closer examination than internal ones.

On the rare occasion political appointments do occur, the Foreign Affairs Committee should be granted public pre-appointment hearings and an unconditional veto, to ensure an open and transparent process.

“Peter Mandelson’s appointment has been highly damaging for the Government, painful and offensive to the victims of Jeffrey Epstein and it has diminished our country in the eyes of the world.”

Lumo supports next generation of leaders with Parliament visit

Lumo has reaffirmed its commitment to supporting the communities it serves by providing complimentary rail travel for a group of young interns from Dr Scott Arthur MP’s Edinburgh constituency during a visit to Parliament.

The five interns travelled with Lumo to Westminster as part of an educational visit designed to give them first-hand insight into the UK’s democratic process and the work of Parliament.

By supporting the visit, Lumo helped remove the cost of travel, enabling the group to experience national politics and public service while strengthening connections between communities and decision-makers.

The initiative comes shortly after Lumo was named the UK’s best value train operator, recognising the company’s commitment to delivering affordable, high-quality rail travel while connecting communities across its growing network.

Stuart Jones, Managing Director of First Rail Open Access, said: “At Lumo, we’re passionate about connecting communities, not just through affordable and sustainable rail travel, but by helping create opportunities for people across the regions we serve.

“Being recognised as the UK’s best value train operator reflects our belief that rail should be accessible to everyone. Supporting visits like this is another way we can help break down barriers and ensure young people have the opportunity to experience Parliament first-hand, regardless of their background.

“We’re proud to work with parliamentarians and local partners to invest in the next generation, broaden horizons and demonstrate that rail can play a positive role far beyond simply getting people from A to B.”

Dr Scott Arthur MP said: “It was a pleasure to welcome these interns from my Edinburgh constituency to Parliament. Opportunities like this can make a real difference in helping young people see how politics works in practice and understand how decisions are made.

“By supporting their travel, Lumo has helped remove a simple but important barrier and made it easier for them to take part in a valuable educational experience.

“I’m grateful for their support in helping open up access to Parliament and encouraging the next generation to engage with public life.”

Lumo operates affordable rail services connecting Edinburgh, Newcastle and Morpeth with London, with new services also serving Stirling, Motherwell, Carlisle and Preston. Through initiatives such as this, the operator continues to support education, social mobility and stronger links between the communities along its route.

Edinburgh attractions back Great British Summer Savings

  • Families across the UK are benefiting from reduced VAT on ticket prices as part of the Great British Summer Savings.
  • Cinemas, soft plays and theme parks are among the attractions where the savings will be passed on.
  • Businesses will also benefit from increased footfall during the summer holidays.

Attractions across Edinburgh and the east of Scotland are embracing the UK Government’s Great British Summer Savings scheme – making family days out more affordable.

The initiative, which cut VAT from 20% to 5% on children’s tickets on a variety of attractions and days out, and on children’s menu meals in restaurants, is now in operation and will run until 1 September.

UK Government Minister for Scotland Kirsty McNeill said: “Now schools are out for the summer across the east of Scotland, we want families to make the most of their time together.

“That’s why this summer, the UK Government is cutting the cost of a family day out with the Great British Summer Savings VAT reduction – helping families across the UK make the most of the summer break.

“Businesses will also feel the benefits with increased visitor numbers and more people discovering the wonderful range of activities and attractions we have throughout Scotland and the whole of the UK.

“Too many parents feel they have to hold back on treats or days out together because of cost of living pressures so the UK Government is slashing the VAT on a range of kids’ activities so families can afford more time together.”

One Edinburgh attraction supporting the savings for families is Camera Obscura and World of Illusions, which has already refunded the price difference to 1200 pre-paid tickets.

Tony Millar, Camera Obscura and World of Illusion’s manager, said: “We’re delighted to be part of the Great British Summer Savings initiative and to pass the benefit directly on to visitors. The summer holidays are an important time for families to make memories together, but we know the cost of days out can add up. 

“By passing on the VAT reduction and reducing our ticket prices over the summer, we hope to make it easier for families, tourists and local visitors to enjoy a fun, memorable and great-value day out in the heart of Edinburgh.”

The VAT rate on eligible activities will be cut from 20% to 5% and applies across England, Wales, Scotland and Northern Ireland.

The reduced rate will apply to:

  • Children’s menu meals served in restaurants for consumption on the premises;
  • Children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions;
  • Admission tickets, for both children and adults, to a range of attractions, including: amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions.

This money-saving package supports families, while also supporting businesses through increased footfall. The government expects businesses to pass on VAT savings to customers.

Guidance for businesses in scope of the policy has been published by HMRC which outlines how businesses can operate the scheme.

For more information, see HM Treasury’s press release.

Government crackdown on Blue Badge fraud

Over 450 Blue Badges have been cancelled after findings show permits issued to deceased residents were still being used

  • 459 unauthorised Blue Badges cancelled in Wirral Council, saving over £363,000 for the taxpayer.
  • Potentially fraudulent permits identified with a data matching tool through the Public Sector Fraud Authority’s National Fraud Initiative.
  • Nationally, the estimated value of Blue Badges cancelled was over £34 million across the past two years.

Over 450 Blue Badges have been cancelled after findings show permits issued to deceased residents were still being used. This joint operation between the Public Sector Fraud Authority and Wirral Council protects parking spaces for those who truly need them and has saved taxpayers over £363,000 between 2024-2025.

Blue Badges give disabled people access to parking where they need it most, with every fraudulent badge denying that access to someone in genuine need. In the last two years, the estimated value of Blue Badges cancelled across the country was over £34 million, as the government is now finding and stopping fraud faster than ever before.

The government’s National Fraud Initiative matched Wirral Council data against central government records held by the Department for Work and Pensions. By cross-referencing these matches to internal records, the investigation team generated a high-priority ‘hotlist’, leading to the cancellation of 459 badges potentially being used fraudulently, with a loss prevention value of over £363,000. 

Traffic wardens in the Wirral will now conduct targeted patrols including roads near local schools, with powers to confiscate badges on the spot. Residents misusing badges following the death of the badge holder face formal warning letters and fines of up to £1,000.

Cabinet Office Minister Satvir Kaur said:Blue Badges are a lifeline for disabled people, allowing them to go about their daily business safely and with dignity. Every time a badge is misused, it unfairly deprives someone in genuine need of a vital parking space right when they need it most.

By working closely with Wirral Council, we are ensuring those in need are properly supported and taxpayer money is protected.

Wirral Council leader and Chair of the Policy and Resources Committee, Cllr Paula Basnett, said: “The Blue Badge scheme is an important means of support for some of our most vulnerable residents, but sadly it seems it has become subject to an acceptable level of misuse across the country.  

“Our response in Wirral has been to use all the tools at our disposal to conduct a proactive, intelligence-led operation, which is backed up with a stronger enforcement strategy. This includes giving traffic wardens the power to immediately cancel and remove illegally used badges and issue warning letters with the potential for fines up to £1,000.

“We have also been collaborating closely with our neighbouring Council in Liverpool to support the management of formal prosecutions. This demonstrates our joined-up approach to tackling fraud locally.”

This builds on work done by the government to fight fraud across the public sector, with £7.53 billion saved for the taxpayer over the past year due to our efforts to identify and dismantle fraud across both central and local government.

These measures are part of our long-term commitment to reduce the estimated £55 billion to £81 billion lost annually to fraud and error across government, as we create a more productive and agile state.

June heatwave: Urgent action needed on “silent killer” of extreme heat

As a record-breaking heatwave hits parts of the UK this week, the Chair of Westminster’s Environmental Audit Committee has pushed the government on what it is doing to tackle the “silent killer” of extreme heat.

In a letter published today, the Chair asks the government how it plans to tackle overheating in hospitals, care homes, schools and prisons, as well as its views on measures such as establishing maximum workplace temperatures, prescribing active cooling such as air conditioning, and changing school timetables. 

The Chair also asks the government about standards to ensure new housing is resilient to future heat, and the work taking place on the imminent Fourth National Adaptation Programme (NAP4). The Climate Change Committee has been highly critical of the Plan’s predecessor (NAP3), saying it falls “far short of what is needed”. 

During a recent evidence session, witnesses told the Committee that current rates of global warming are unprecedented and that heat extremes are often outpacing scientific predictions, leaving the UK likely to face longer and more intense heatwaves.

One witness told MPs that the UK was “built for a climate that no longer exists”.

Chair of the Environmental Audit Committee, Toby Perkins MP, said: “This week parts of the UK are facing temperatures approaching 40 degrees, a level of extreme heat that was once unthinkable yet now is becoming increasingly likely. 

“The effects of such extreme heat can be disruptive and devastating. Without action, we will see economic productivity take a hit; more people needing attention in hospital and suffering with poor mental health; more hospitals, care homes and schools overheating and more of our critical transport, water, food and IT systems failing.

qEconomic productivity will be hit, but more importantly we will likely see a significant number of deaths as a direct result of the current heatwave. 

“The evidence could not be clearer that extreme heat is an urgent threat to the UK. Yet the government is currently falling “far short of what is needed”, according to its independent climate advisors. 

Taking action carries a significant cost. But the cost of doing nothing is far, far greater.

“I want to know what action the government is taking to tackle extreme overheating, a problem that will only grow worse without intervention, as well as its views on important measures to adapt to what seems to be our new normal.”

Thousands more out-of-work benefit claimants to get personalised support

Up to 40,000 disabled people and people with health conditions will benefit from expanded access to personalised support, as the government rolls out Support Conversations across a further 27 Jobcentres taking the total number of sites to 33

  • Support Conversations expanding to a further 27 Jobcentres across Great Britain, bringing the total to 33 sites.
  • Disabled people and those with health conditions on out of work benefits are being offered a one-to-one, voluntary, hour-long conversation to discuss their support needs and identify extra help. This support is personalised and could link people to help with their health, debt, skills, employment and housing.
  • Part of the government’s wider £3.5 billion investment to help disabled people and those with health conditions into work over the Parliament.

Support Conversations are voluntary, hour-long sessions designed to help people identify and overcome the barriers stopping them from moving into work or into meaningful activity (such as volunteering) and is part of the commitment the Government made in last year’s Pathways to Work Green Paper

Unlike standard Jobcentre appointments, Support Conversations take a holistic approach, covering not just employment, but housing, debt, skills, and drug and alcohol rehabilitation services. Support Conversations are delivered by Healthcare Professionals, Pathways to Work Advisers, and Disability Employment Advisers, and are available face to face, by video, or by telephone.

They are open to those who are awaiting a Work Capability Assessment and people furthest away from the labour market – assessed as having Limited Capability for Work and Work-Related Activity (LCWRA). 

These are people who for too long were written off and denied support. But the government’s expansion of Support Conversations is giving people they help they need and builds on the landmark deployment of 1,000 Pathways to Work Advisers, who have already helped more than 65,000 sick and disabled people get one step closer to work.

Minister for Employment Dame Diana Johnson said: “Too many disabled people and people with health conditions face barriers that stop them from accessing the support and opportunities they deserve. 

“That is why we are expanding the number of sites delivering Support Conversations from 6 to 33 Jobcentres across Great Britain, giving up to 40,000 people personalised help tailored to their circumstances. 

“Getting more people into good work is central to our Plan for Change and Support Conversations will help us do exactly this.”

This expansion builds on testing already live in six sites where support conversations are being delivered by healthcare professionals and disability employment advisers. Early testing indicates customers feeling “listened to” and “supported.”

Neil, a Disability Employment Adviser in Bournemouth said:  “Support Conversations are a great opportunity to spend an hour focused on the claimant and their needs. 

“We all know that many people face a whole range of challenges which need to be overcome as part of their individual journey back to work and talking through those challenges with a DEA is an important first step.

“Support Conversations confirm that the most valuable resource we have is the time that we spend with our claimants.”

Saimha, a Healthcare Professional in Preston said: “Support Conversation is about providing compassionate, informed, holistic, person-centred support to disabled people and those with health conditions. Every interaction is an opportunity to make someone feel heard, safe, and supported.

“Every person’s health journey is unique and support conversation is an opportunity to identify the range of barriers people are facing in their day to day life and signposting them to the relevant services that can help, encouraging people to take positive steps towards improving their lives.”

This expansion forms part of the UK government’s Pathways to Work offer and its broader £3.5 billion employment support package, which includes:

  • Connect to Work, which delivers tailored, personalised, local support that will help 300,000 people into work by the end of this parliament.
  • The national expansion of WorkWell, backed by £259mn, helping up to 250,000 people with health conditions to stay in or return to work.
  • Allowing sick or disabled people to try work without the immediate fear of reassessment through the Right to Try.
  • The deployment of 1,000 Pathways to Work advisers who’ve already helped tens of thousands of people the previous Government wrote off.

The government will continue to test the success of Support Conversations through healthcare professionals and disability employment advisors as part of this expansion, with Pathways to Work Advisers also carrying out these Support Conversations for the first time. 27 sites have been confirmed so far, with a further six sites to be confirmed shortly.

The expansion directly supports the government’s Plan for Change and its mission to raise living standards across the UK by helping more people into work and ensuring everyone has the opportunity to thrive.

Additional Information:

  • Support Conversations are currently offered to people awaiting a Work Capability Assessment (WCA) who have registered a health condition or disability that impacts their ability to work and those assessed as having Limited Capability for Work and Work-Related Activity (LCWRA).
  • The conversations are entirely voluntary.
  • List of confirmed sites (note 6 further sites to be confirmed shortly):
SiteModel
AberdarePtWA
Berwick Upon TweedPtWA
BlaydonDEA
BournemouthDEA
DidsburyPtWA
GlenrothesDEA
GrimsbyPtWA
HoxtonPtWA
LancasterHCP
Leeds Park PlacePtWA
Leicester Charles StreetDEA
Leicester Wellington StreetDEA
North ShieldsDEA
NorthwichPtWA
PrestonHCP
RusholmePtWA
SaltcoatsPtWA
ShettlestonDEA
South ShieldsDEA
SouthendDEA
SparkhillDEA
SpringburnDEA
SunderlandDEA
ThornabyHCP
WesterHailesPtWA
WhitehavenDEA
WorkingtonPtWA

Ministers must “get off the fence and give leadership” on UK-EU future, says Westminster committee

10 years on from the Brexit vote and thirteen months after its first report into the UK’s “EU reset”, the Business and Trade Committee finds that the initial stakeholder welcome for the Reset’s ambition has been hit by concerns about delivery

Read the report

  • Of the most substantive agreements the UK has reached with the EU to date, on steel, fisheries and energy: the fisheries agreement was not universally welcomed and positive progress on steel tariffs risks being undermined without an agreement in talks ongoing since November last year.
  • The UK’s association to the Erasmus+ student exchange programme cost £570 million for the 2027/2028 academic year but the jury is out on its impact.
  • None of the three wider UK ambitions in the Common Understanding – help for touring artists, improved business mobility and an agreement on the mutual recognition of professional qualifications – have materially advanced.
  • It is unclear what the Security and Defence Partnership has delivered beyond political signalling.

The Committee has heard five key concerns about the Government’s current approach:

  1. The ‘rhetoric-reality gap’: Government ministers have not pulled their punches about the negative economic impact of Brexit, but delivery of the current Reset is expected to add just 0.5% to the UK’s GDP by 2040, even in an optimistic scenario.
  2. Limited progress in the critical area of defence and defence industrial policy, despite war raging on the European continent and the clear change of US approach to NATO.
  3. Late negotiations for a deal on electricity trading even as the UK battles the highest electricity prices in the G7.
  4. European partners still in the dark about the UK’s end goals with no clear strategy beyond the 2026 summit, and no clear strategic case for the Reset.
  5. Continued disagreement on “dynamic alignment” with EU regulations.

The Committee concludes it is “unlikely” that the Government’s approach in the current round of negotiations will address these concerns and sets out the basic models for deepening ties – alongside the trade-offs entailed. 

Rt Hon Liam Byrne MP, Chair of the Committee, said: “Ministers have been frank about the economic damage Brexit has caused, but there is now a yawning gap between their rhetoric and the reality of what the Reset is actually delivering.

“Business cannot invest on political signalling alone. It needs clear rules, a clear destination and a credible vision. Ministers must now get off the fence, set out where they want Britain’s relationship with Europe to be by the end of this Parliament, and provide the roadmap to restore confidence, strengthen our security and deliver the growth the country needs.

“Crucially, we need to understand that ten years after the Brexit referendum, Europe is changing fast. Russia’s war against Ukraine continues, hybrid attacks are escalating across everywhere and the United States has made clear that European NATO allies must do more to provide for their own security. Yet our inquiry found limited progress on UK-EU defence cooperation.

At a moment when Europe should be strengthening its industrial and security partnerships, it is especially disappointing that the UK has yet to secure participation in the EU’s SAFE defence procurement programme, never mind set out an ambitious strategy for defence and economic security alliance.”

The Scottish Government says Scotland’s future lies in the European Union.

Holyrood belives re-joining the European Union would benefit Scotland by:

• strengthening our economy by reducing barriers for Scottish businesses

• providing Scottish people more opportunities to live, learn and work across Europe

• giving Scotland a stronger voice among our European neighbours

STARMER TO GO

Sir Keir Starmer has announced he is stepping down as prime minister and leader of the Labour Party, here is his resignation speech in full:

https://twitter.com/i/broadcasts/1XGyggXMDAnxM

Thank you. Thank you. Walking up this street two years ago was the proudest moment of my life. A new Labour government. The first in 14 years. A page in our country’s history turned after years of disappointment and despair.

The chance to change the lives of millions of people for the better. That’s what I came into politics for. The journey to that point was not easy.

Six years ago, I inherited a Labour Party that was politically, financially and morally bankrupt. I was told, time and time again, that my party was finished.

That we were consigned to history, that a majority at the general election, let alone a landslide majority, was impossible. But we proved those people wrong because we changed our party.

Ripping out the poison of antisemitism, restoring trust on the economy, defence, and national security.

And becoming a party that, once again, stood proudly with, not against, our national flag. The hard work of change was with a singular purpose. Not power for power’s sake but to change Britain for the better.

To build a fairer country, with dignity and respect, where everyone is seen, everyone is valued. Wealth and opportunity for all, not just the privileged few. And look at what we’ve achieved in just two years.

An economy that is stronger, growing faster than our peers. Wages rising faster than inflation in every single month since we came to power. Investment secured, infrastructure being built. An end to austerity, with the fastest fall in NHS waiting lists for 17 years.

The biggest improvement in rights for workers and renters in a generation. The biggest uplift in defence spending since the Cold War. Small boat crossings falling, asylum hotels closing, protecting young people from social media, and half a million children being lifted out of poverty because of the choices that I made.

Our reputation in the world restored, with Britain once again standing up for decency, respect and the rule of law. Securing trade dues, standing with Ukraine, standing up for our values, and rebuilding our relationship with our allies in Europe.

Change promised by a Labour government. Change fought for by a Labour government, change delivered by a Labour government.

But I know the question being asked now is not who was best placed to change the Labour Party, to take us into power, and to begin the vital work of improving lives for millions of people. Those questions have been answered.

The question my party is asking now is whether I am best placed to lead us into the next general election. I have heard the answer of my parliamentary party to that question. And I accept that answer with good grace.

Every decision I’ve taken has been about putting the country I love first. That is why I will resign as leader of the Labour Party. I have spoken to His Majesty the King this morning to inform him of my decision.

I will ask the National Executive Committee of the Labour Party to set out a timetable with nominations opening on 9 July and completed by the summer recess. In the case of a contest, this will ensure a new leader is in place before Parliament returns in September.

I will remain in post as Prime Minister until the contest is complete. And I will do everything I can to ensure an orderly handover of power.

I will also give my successor my full and unequivocal support, knowing that they will inherit a Britain that is far stronger and fairer than the one I inherited two years ago, better prepared for the challenges ahead, and better able to ensure the Labour Party secures a second term in office.

I want to thank all of those friends and colleagues who have been at my side for these past six years or so for their incredible commitment, service and support.

I want to thank the brilliant No 10 staff and our country’s extraordinary civil service, who dedicate their lives to public service.

And when I leave, the biggest job in the country. I shall spend more time on the most important job. Being the best husband I can to my fantastic wife, Vic, who has been a rock by my side, through good times and bad. And being the best dad I can to my beautiful children, who are my pride and my joy.

Thank you very much.

https://twitter.com/i/broadcasts/1XGyggXMDAnxM

COMMENTS:

Tracy Gilbert MP

“Keir Starmer led the Labour Party to a historic landslide victory in 2024, ending fourteen years of Conservative government.

“Since then, he has overseen a period of significant reform and renewal under the most difficult circumstances.

“He led the biggest improvement in workers’ and renters’ rights in a generation, alongside the introduction of the Employment Rights Bill, which formed part of a wider programme to rebuild economic security and fairness. 

“He has rebuilt our relationship with Europe and has proven to have been able to represent the UKs interests on the international stage.  

“Most importantly, he lifted hundreds of thousands of people out of poverty through deliberate policy choices aimed at improving lives across the UK including the removal of the two-child benefit cap.  

“I wish him and his family well for the future and thank him for his service to the country at a pivotal moment in its history.”

Brian Leishman MP:

A change of Prime Minister must mean a change in direction.

“This Labour government still has time to transform the country and improve the lives of millions of people.

“It’s time for real Labour policies that will make people better off and our country a fairer place.”

Momentum:

Socialist Labour …

 Former Labour Party leader Jeremy Corbyn:

Keir Starmer could have ended child poverty, homelessness and the grotesque levels of inequality in this country.

‘Instead, he abandoned those in need, destroyed our civil liberties and facilitated genocide in Gaza.

‘That is how this Prime Minister will be remembered – and that is the legacy of moral and political bankruptcy he leaves behind.

‘The crises in our society are not going away. Neither are we – and we will keep fighting for a more equal, peaceful and dignified society for all.’

STUC:

FBU general secretary, Steve Wright said: “Whoever replaces Keir Starmer needs to be clear that the status quo has to change.

“The reason we find ourselves with yet another PM standing down is that, like May, Johnson, Truss and Sunak before him, Starmer failed to break with the perceived wisdom of attacking public services, failing to tackle wealth inequality, whilst letting privatised public utilities rip off the people of this country.

“A new Labour leader needs to learn that lesson and learn it fast.

“For FBU members, this means stepping in to end the threat of fire station closures that puts our members and the public’s lives at risk.

“There needs to be investment in the fire and rescue service alongside other public services, and as an affiliated trade union, we will be putting that position before any candidate in a leadership election.

“We cannot have more of the same. If we do, then whoever is elected will inevitably have failed in their role and will be out of office at the earliest opportunity.

“The chance to break with the narrative of the past is now, learn the lessons that previous Prime Ministers failed to do and deliver a better future for our members and the people of this country.”