Prime Minister Keir Starmer is confronting mounting opposition from within his own party over controversial new welfare reforms that critics warn could unfairly target vulnerable benefit claimants. The government’s proposed Fraud, Error and Recovery Bill, which resurrects previously abandoned Conservative policies, has sparked alarm among Labour backbenchers who fear it could lead to widespread injustices.
At the heart of the controversy are plans to grant the Department for Work and Pensions sweeping new powers to combat what ministers describe as £9.7bn in annual benefit overpayments. The legislation would authorize officials to access claimants’ private bank accounts through mandatory data sharing with financial institutions, automatically deduct suspected overpayments using algorithmic monitoring systems, and impose driving license suspensions on those deemed repeat offenders.
Work and Pensions Secretary Liz Kendall has vigorously defended the measures as essential to repairing what she calls a “broken welfare system.” However, the proposals have drawn fierce criticism from within Labour’s ranks, with 17 MPs already backing amendments to scale back the most contentious elements. Leading the rebellion, Poole MP Neil Duncan-Jordan has condemned the plans as a dangerous overreach that risks repeating the mistakes of the Post Office Horizon scandal on a much larger scale.
The growing revolt reflects deepening concerns about the potential consequences of subjecting millions of benefit recipients to automated financial surveillance. Critics argue the measures would effectively presume guilt among some of society’s most vulnerable groups, including disabled claimants, carers and pensioners, forcing them to navigate complex appeals processes to prove their innocence.
As the parliamentary battle intensifies, the controversy threatens to become the first major test of Starmer’s authority over his backbenches, with progressive MPs warning the hardline approach betrays Labour’s traditional commitment to protecting welfare recipients from state overreach. The outcome could signal whether Starmer’s government will temper its law-and-order agenda in response to internal dissent or push ahead with reforms that risk alienating its core supporters.
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