Politics latest: Train drivers' union strikes deal with government that could end strikes (2024)

We're bringing the Politics Hub to a close for the night.

It was a day dominated by Liz Truss's reaction to being trolled by pranksters last night, as a banner featuring a lettuce and stating "I crashed the economy" was unfurled behind her at an event.

Those who romained with us into the evening were treated to news that should go down well with anyone reading this from a carriage, as train drivers' union Aslef announced a pay deal with the government that could bring strikes to an end.

There were a few other gems in the Politics Hub today, including minister Jess Phillips expressing regret over a controversial tweet she sent during the recent riots.

And those stories are just the tip of the iceberg - there's plenty more to catch up on by scrolling back through the Politics Hub, and there's a podcast about today's inflation news above.

We'll be back tomorrow morning, when Sky News will bring you live coverage of this year's A-level results and an update to GDP figures.

Have a great evening.

By Jennifer Scott, political reporter

The government's child poverty taskforce has got to work as ministers begin putting together a strategy to lift families out of destitution.

But despite pressure within Labour and from other parties, it won't be scrapping the controversial two-child benefit cap.

What is the policy?

The two-child benefit cap was announced by the Conservatives in 2015, forming part of their austerity measures.

It means while parents can claim child tax credit or Universal Credit payments for their first and second child, they couldn't make claims for any further children they had.

These are separate payments to child benefit, which has no limit on how many children can be claimed for.

The argument from the Tories limiting the tax credit to two children made the system fairer for taxpayers, ensuring households on benefits "face the same financial choices about having children as those supporting themselves solely through work".

But opposition MPs and campaigners said the measure would drag more children into poverty and hit hard up families.

What is Labour's stance on it?

Labour were strong critics of the policy while in opposition and many expected they would scrap it if they won power.

But last year, Sir Keir Starmer ruled it out due to the public finances.

The Resolution Foundation has said abolishing the two-child limit would cost the government somewhere between £2.5bn and £3.6bn, but the Save the Children charity estimated the move would take half a million children out of relative poverty.

Seven Labour MPs paid the price for trying to force the government to scrap the policy - they were suspended from the parliamentary party for voting against the King's Speech.

Ministers have hinted they don't particularly like the policy - but it's not going anywhere for the foreseeable future.

The government's child poverty taskforce has met for the first time.

Chaired by the work and pensions secretary, Liz Kendall, it aims to put together measures to tackle a "scar on our society".

The taskforce was viewed as a compromise measure of sorts to satiate Labour MPs keen for the divisive to scrap the controversial two-child benefit cap, a Tory policy which the government is keeping in place.

Prime Minister Sir Keir Starmer has suggested scrapping it isn't affordable for at least the time being.

Speaking after today's meeting, Ms Kendall said the taskforce had a "comprehensive strategy to drive down poverty", with latest figures showing four million children now growing up in a low-income family.

Ms Kendall was joined today by colleagues including the deputy prime minister and education secretary, who co-chairs the taskforce.

What will the taskforce do?

According to the government, its priorities are:

• Consider social security reforms to help people into work
• Bring down essential household costs
• Help people build savings and tackle problem debt

The taskforce will hear directly from affected families and children, leading campaigners and charities, while relevant ministers will work with local leaders across the country.

A dedicated child poverty unit is being set up in the Cabinet Office to assist with delivering the strategy, which the government said would be finalised and published by next spring.

Aslef, the union representing train drivers, says it has a struck a new pay deal with the government.

It would see drivers get a 5% pay rise for 2022/23, 4.75% for 23/24, and 4.5% for 24/25.

The union will now put the proposal to its members, and general secretary Mick Whelan is recommending they accept.

The union rejected a pay offer of 4% back in April 2023 - this new one is backdated for that period.

The agreement follows years of strikes on the railways, which caused huge disruption across the country.

If drivers agree to the terms, it would mean no strikes for at least a year because the offer covers 2024/25.

Transport Secretary Louise Haigh welcomed the news.

She said it would help with "driving up performance" ahead of "the biggest overhaul to our railways in a generation", as Labour plans to renationalise the railways as existing contracts end.

The Tories' shadow transport secretary Helen Whately said the government had "caved to the unions" by doing a deal.

Older people eligible for government subsidies to cover their bills have been urged not to go without.

Fresh figures show the number of pensioners claiming council tax support has fallen in the past year - and Age UK fears that trend may be replicated when means testing is introduced for winter fuel payments.

They had been available to all pensioners, but the chancellor announced last month that - due to the state of the public finances - only those on other benefits like Universal Credit would remain eligible.

Caroline Abrahams, director of Age UK, said it was "vital" anyone who can claim financial help does so.

It can help "make the difference between living in a home that's warm enough and one that's too cold".

Inflation is up for the first time this year.

Prices went up by 2.2% in the year to July – moving the rate above the Bank of England target of 2%.

Experts had expected an up tick as energy prices are falling by less than they did a year ago, and the increase doesn'tseem to change hope forfurther interest rate cuts in the months to come.

But what else can we expect from the economy this autumn as the new government continues to warn about the "challenges" it'sinherited, and as the chancellor prepares her first budget in October?

Joining Niall Patersonis our business correspondent Paul Kelso and political correspondent Darren McCaffrey.

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Your teatime bulletin from the Politics Hub has arrived.

Here's what you need to know:

• Liz Truss has responded with fury after pranksters unfurled a banner with a lettuce saying "I crashed the economy"while she was on stage at an event to promote her book;
• The former prime minister said it was "not funny" and suggested it was a security threat and attempt to suppress free speech;
• But our political correspondent Darren McCaffrey said many will feel the recently ousted Tory MP needs to finally face up to her record.

• Home Office minister Jess Phillips has admitted some regret over a tweet she sent during the recent riots;
• She had been accused of justifying the behaviour of Muslim men who surrounded and threatened a Sky News crew in Birmingham, and today said she could have phrased her tweet "more carefully";
• The Labour MP said she was trying to explain the men had gathered due to misinformation about a far-right threat.

• Elsewhere, a Treasury minister has reminded voters of "the scale of the challenge" Labour inherited aftera rise in inflation;
• And Downing Street has said the government is working "around the clock to plan for all scenarios" in the Middle East, amid fears of an Iranian attack against Israel this week.

That's all for now - stay with us for any updates over the next few hours.

Scotland's first minister has launched a staunch defence of his government's stance on the Middle East crisis.

It comes after the Scottish Greens, who were in coalition with the SNP until their deal was ended by Humza Yousaf, criticised talks between a senior government figure and Israel's deputy ambassador.

Green MSP Ross Greer said the SNP "publicly condemn Israel's war crimes while holding secret meetings with its representatives to discuss so-called 'mutual interests'".

The talks were between the Holyrood government's external affairs secretary Angus Robertson and Israel's Daniela Grudsky.

Swinney reiterates support for ceasefire

First Minister John Swinney, who replaced Mr Yousaf earlier this year, said his colleague had pressed Ms Grudsky in the talks last week on "the killing and suffering of innocent civilians" in Gaza.

Ms Grudsky said the discussions were dedicated to the "unique commonalities" between Scotland and Israel, and she emphasised the "urgent need" for Hamas to release hostages it took on 7 October.

Mr Swinney said he understands why some feel the face-to-face meeting "was not appropriate", but said it was "necessary" to "directly" outline his government's support for a ceasefire.

Former prime minister Liz Truss stormed off from an event in Suffolk last night after pranksters unfurled a mocking banner behind her.

She was promoting her book when a sign adorned with a lettuce saying "I crashed the economy" appeared - a reference to a Daily Star stunt which ended with a vegetable outlasting her premiership.

Our political correspondent Darren McCaffrey said earlier the recently ousted MP was clearly "not amused" by the stunt (see 12.50 post) - and it's fair to say he was dead right.

"What happened last night was not funny," Ms Truss said on X.

She blamed "far-left activists", which we know to be the campaign group Led By Donkeys, and said the event was "stopped for security reasons".

"This is done to intimidate people and suppress free speech," she said.

"I won't stand for it."

She also questioned what the reaction would have been if the activists "were far-right".

The deputy prime minister and business secretary have met with senior representatives from some of Britain's most influential unions today.

Angela Rayner and Jonathan Reynolds held talks with people from the TUC, CBI, Unison, and Unite about the Labour government's plan to ban "exploitative" zero-hour contracts, end fire and rehire, and create a new watchdog for workers' rights.

After unions endured an often difficult relationship with the last Tory government, the cabinet ministers agreed to "wipe the slate clean".

Mr Reynolds said the "valuable insights" of unions had been "ignored" for "too long", and working with them would help boost economic growth and create better working conditions.