Keir Starmer's Plan to Slash Welfare Benefits Sparks Controversy
Keir Starmer's administration is gearing up to announce significant reductions in Britain's welfare expenditure in the upcoming weeks.
Anticipated Cuts
The anticipated cuts to benefits, set to be revealed before the Spring Statement, could spark the largest backlash of Starmer's time in office. Some Labour MPs have already cautioned the Prime Minister against imposing 'draconian' reductions, while disability organisations are sounding the alarm about potential 'catastrophic' consequences. Work and Pensions Secretary Liz Kendall has been working on proposals aimed at decreasing the number of individuals receiving health-related benefits and facilitating their return to employment.
Current Situation
In a recent Cabinet meeting, she highlighted that there are 2.8 million people currently unemployed due to health issues, with one in eight young individuals neither in education, training, nor employment. Government expenditure on sickness benefits surged by 25% last year compared to the pre-pandemic period, reaching £65 billion. Projections suggest this figure could escalate to £100 billion before the next general election.
Proposed Reforms
Although the proposed reforms are expected to be outlined in an upcoming welfare green paper, ministers are preparing for substantial opposition, reports the Mirror. Recent research from Trussell Trust revealed that over three-quarters of those on Universal Credit and disability benefits had forgone basic necessities in the past six months.
Potential Impact
Ministers are rumoured to be eyeing a £5 billion slash in welfare spending through changes to Personal Independence Payment (PIP) benefits. This fund, critical for individuals both employed and unemployed, offers essential assistance with the added living and mobility expenses brought on by their disabilities. Details leaked of these proposals suggest an aim to tighten eligibility criteria for PIP, which charities have warned could result in 'catastrophic' outcomes. Additionally, there's talk that payments might remain static next year, failing to rise with inflation.
Extent of Cuts
The extent of the potential cuts is considerable. The Resolution Foundation has calculated that a reduction in PIP expenditure by £4 billion by 2029/30 would necessitate cutting around 630,000 currently supported individuals or imposing a 15% real-terms reduction in award value over this period. It's been indicated, however, that suggestions of substituting benefits for vouchers, an idea previously floated while Rishi Sunak was PM, have been dismissed by ministers.