Labour MPs Revolt Over Planned Benefits Cuts as Government Prepares “Radical Welfare Reforms”
Labour MPs are publicly raising concerns over the upcoming cuts to the benefits system, with details expected to be revealed next week. The government is set to announce “radical welfare reforms” that aim to tackle what they describe as a “broken benefits system.” Work and Pensions Secretary, Liz Kendall, has already pointed out that the current system locks “millions” of people out of work and labelled it “dysfunctional” for its overly simplistic approach of categorizing people as either “fit for work” or “not fit for work.”
The government has promised to overhaul the Work Capability Assessment, which is used to determine if a person is fit to work, claiming the current system forces people who want to work “into a life on benefits”, reported Sky News.
Kendall stated, “Millions of people have been locked out of work by a failing welfare system which abandons people – when we know there are at least 200,000 people who want to work and are crying out for the right support and a fair chance.” She added that the government is determined to fix the broken system, aiming to better support people, unlock job opportunities, and improve living standards while keeping the welfare bill on a more sustainable footing.
Ministers have been signaling that cuts to the welfare system are coming, and details will be unveiled ahead of Chancellor Rachel Reeves’s spring statement on March 26. With a £9.9bn budget shortfall since the October budget, Reeves is expected to announce several billion pounds in spending cuts, with the welfare budget targeted for savings.
The cuts are expected to include £5bn in savings by tightening eligibility for Personal Independent Payments (PIP), which help people with the additional costs of living with a disability. PIP payments are expected to be frozen next year, and there will likely be an increase in the basic rate of Universal Credit for those actively searching for work or already in work, while the rate for those deemed unfit for work will likely be reduced.
The Department for Work and Pensions has highlighted new figures showing that 1.8 million people are now considered too sick to look for work due to a “broken work capability assessment,” and these individuals are on Universal Credit without receiving any support to find employment. This number has nearly quadrupled since the start of the pandemic when 360,000 were considered too sick to work.
As details about the cuts loom, a growing number of Labour MPs are speaking out, with 404 Labour MPs being invited to “welfare roundtables” at Downing Street this week. Sir Keir Starmer faced questions from MPs who were unhappy about the rumored cuts, particularly concerning disabled people. Richard Burgon urged Starmer to make the “moral” choice and introduce a wealth tax instead of making the vulnerable suffer more.
Starmer pledged to “protect those who need protecting” but added there’s no “bottomless pit.” He called out the Tories for leaving behind a broken welfare system that “locks millions out of work.” MPs like Nadia Whittome echoed concerns, saying that the government should impose a wealth tax rather than burdening disabled people, who have already suffered from years of austerity. Whittome expressed personal frustration, stating she “can’t look her mum in the eye and support this.”