Skip to content
Friday 7 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,886.58
+0.17%
DAX
26,250.93
+0.42%
CAC 40
8,706.15
+0.07%
STOXX 50
6,518.22
+0.24%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Monday 08 June 2026 3:17 pm  |  Updated:  Monday 08 June 2026 7:56 pm

Pat McFadden: I have not apologised to Rachel Reeves over ‘tax to pay benefits’ text

By: Samuel Norman

Senior City Reporter

Add as a preferred source on Google
Pat McFadden speaking at a podium during a press conference, addressing current general news topics.
Labour's Pat McFadden defended his comments. (Image: PA)

Welfare secretary Pat McFadden has doubled down on his remarks unearthed in the Mandelson files that “every meeting [he has] is ‘who can we tax in order to pay benefits to others’”.

The Cabinet minister was among numerous top officials to have his private messages released in documents relating to Lord Mandelson’s stint as the UK’s Ambassador to the US.

Messages from May last year revealed the loyal Starmer ally blasted the government for “asking the wrong questions” as its attempt at welfare reform was kiboshed by a back-bench rebellion.

McFadden told Morning Wire: “I don’t think there’s any surprise in those texts about my views on things”.

He added: “I’ve been saying we need to change the question that the welfare system asks and I believe that. And we need to change that question from just asking what benefits are you entitled to, to how do we help you change your life.”

The Wolverhampton MP confirmed he had not apologised to Rachel Reeves over the newly-released messages. 

In the exchanges, Mandelson was revealed to have shared concerns with McFadden – who was serving in the Cabinet Office at the time before being reshuffled to work and pensions secretary – that he was “very worried about the economy,” adding “confidence is being lost”.

Read more

Burnham premiership begins with decline in job postings

Andy Burnham, Mayor of Greater Manchester, in a professional setting.

But McFadden insisted on Monday he did not think the change needed required the removal of the Chancellor from her post, adding “she’s a good colleague and a good friend”.

McFadden heads to Arsenal to tout SWAPs

The comments came as the minister met young people at Emirates Stadium who had completed the government’s Sector-based Work Academy Programme (SWAP).

The scheme, which Arsenal completed a hospitality version of, aims to help unemployed benefit claimants learn new skills and find work in industries with local vacancies.

“I think the community arms of major football clubs do a great job,” McFadden said on Monday.

“They do wonderful work and the clubs can reach young people, help expand their confidence and help them with CV writing and so on, and sometimes it can lead to a direct job.”

The government is battling a rising tide against the issue of youth unemployment. The Office for National Statistics (ONS) said the number of Neets, otherwise young people not in education, employment or work, soared past 1m in the first three months of 2026.

Former Labour health secretary Alan Milburn has warned the figure could reach 1.25m within five years in a report published at the end of May.

Read more

Students urged to rethink idea of a ‘safe job’ as Labour pledges major education reform

Bald man in glasses and a tie kicking a soccer ball on an indoor artificial turf field.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Politics
  • Business
  • Economics

People & Organisations

  • Chancellor Rachel Reeves
  • Economy
  • growth
  • Growth Agenda
  • Political
  • Politics
  • Rachel Reeves
  • rachel reeves speech
  • Tax
  • Tax administration
  • tax avoidance
  • tax bill
  • tax bracket
  • tax breaks
  • tax burden
  • Welfare
  • welfare bill
  • Welfare hub
  • welfare payments
  • welfare reform

Trending Articles

  • Rupert Lowe axes pensions triple lock and pledges tax cuts in economic plan

  • Revolut founder’s wealth set to balloon amid talks of share award at $500bn valuation

  • As it happened: Stocks rise as oil fluctuates after Red Sea attack; US-Iran deal ‘being circulated’

  • Liverpool owners tipped to sell – but not to Amazon boss Bezos – by former CEO

  • WPP slashes jobs as revenue continues to fall

More from Morning Wire

  • Burnham premiership begins with decline in job postings

    Economics
    Andy Burnham, Mayor of Greater Manchester, in a professional setting.
  • Students urged to rethink idea of a ‘safe job’ as Labour pledges major education reform

    Politics
    Bald man in glasses and a tie kicking a soccer ball on an indoor artificial turf field.
  • Sadiq Khan lobbies Burnham to appoint Miliband as Chancellor 

    Politics
    Sadiq Khan addressing media at a press conference in formal attire, discussing recent developments in London policies
  • The Capitalist: A Reeves speech or swan song? Dispatch from Mansion House

    Opinion
    Rachel Reeves delivering a speech at Mansion House, addressing economic policies and future plans in a formal setting.
  • Nearly 1m people to pay higher tax ‘by stealth’

    Economics
    Tax Trap: Another 74,000 taxpayers were added to the punitive £100,000-£125,000 income bracket during the 2024/25 tax year
  • Burnham vows to ‘get serious’ about slashing welfare bill

    Politics
    Andy Burnham, Mayor of Greater Manchester, speaking and gesturing during an interview
  • I’m a 21-year-old grad, why does the government want me to go on the dole to get a job?

    Opinion
    Young man in front of a Jobcentre Plus building, standing on a pedestrian crossing.
  • Burnham backs higher defence spending but rules out ‘crude’ welfare cuts

    Politics
    Andy Burnham
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook