Keir Starmer’s administration is set to unveil a proposal to reduce spending on welfare in the UK by billions. The plan focuses on cutting benefits, which has sparked concerns among Labour MPs and disability charities over the potential negative impacts.
Liz Kendall, the Secretary for Work and Pensions, has been working on reforms to decrease the number of individuals receiving health-related benefits and to encourage their return to work. The government spent £65 billion on sickness benefits last year, a substantial increase from before the pandemic, and this figure is projected to rise to £100 billion before the next general election.
A leaked document suggests that the government is considering adjustments to Personal Independence Payment (PIP) benefits to achieve savings of up to £5 billion. This fund aids individuals with living and mobility costs related to their disabilities.
The proposed changes are significant, with estimates indicating a potential 15% reduction in the value of PIP awards to achieve cost savings. However, the government has ruled out replacing the benefit with vouchers, as previously suggested.
Moreover, the government is exploring raising the basic rate of Universal Credit for individuals already employed or seeking work. Additionally, a portion of the funds may be allocated to employment support for job seekers.
Ministers are also contemplating potential cuts to benefits for those deemed unfit for work due to disabilities or health conditions. Any alterations are expected to undergo a consultation period before implementation.
The upcoming Spring Statement on March 26 will provide more details on the proposed welfare reforms. Labour MPs and various charities have expressed concerns about the potential consequences of benefit cuts, emphasizing the need for a compassionate approach in the welfare system.