The Labour government’s plans to cut £5 billion from the welfare budget have sparked a fierce backlash from within the party. Work and Pensions Secretary Liz Kendall will unveil the reforms in a statement to the House of Commons this afternoon, but many Labour MPs are deeply concerned about the impact on vulnerable people.
The changes will tighten eligibility criteria for personal independence payments (PIP), a key disability benefit, and block under-22s from claiming the health element of Universal Credit. Ministers argue the reforms are necessary to tackle the spiralling welfare bill, which is projected to reach £100 billion by the end of the decade.
However, senior Labour figures have criticised the plans as a return to “austerity 2.0” that will push the poorest and most vulnerable deeper into poverty. Debbie Abrahams, the chair of the Work and Pensions Select Committee, said the £5 billion in cuts represented the “largest reduction in social security support since 2015” and called for more “compassionate” alternatives.
The reforms have also drawn condemnation from disability charities, unions and think tanks. The MS Society described the changes as “immoral and devastating”, while the TaxPayers’ Alliance warned the government’s “relentless assault on British businesses and taxpayers” risked undermining its own employment goals.
Prime Minister Sir Keir Starmer faces a difficult task in holding his party together, with some backbench MPs threatening to rebel against the welfare reforms in Parliament. The government will publish a full impact assessment alongside next week’s Spring Statement, but critics argue the changes will worsen child poverty and leave disabled people struggling to make ends meet.