Prime Minister Sir Keir Starmer has denounced the current welfare system as “unsustainable,” “indefensible,” and “unfair,” arguing that the government cannot simply “shrug its shoulders and look away.”
Speaking to Labour MPs on Monday evening, Starmer said the benefits system discourages employment while placing an increasing financial burden on taxpayers. His remarks come ahead of expected welfare reform proposals from Work and Pensions Secretary Liz Kendall, aimed at reducing the benefits bill.
Chancellor Rachel Reeves has also outlined potential spending cuts across welfare and other government departments in preparation for the Spring Statement.
The proposed changes have sparked debate within Labour. MP Rachael Maskell warned against “draconian cuts” that could push disabled people into poverty. Labour MP Neil Duncan-Jordan voiced similar concerns, telling Newsnight: “If we are going to make poor people poorer, then there will be a number of MPs who won’t be able to sign up to that.”
However, some Labour MPs back reform. The Get Britain Working group, made up of 36 MPs, has called on the government to help long-term sick and disabled people enter employment if they can.
During the meeting, Starmer reaffirmed Labour’s commitment to ensuring work is a viable option while protecting those in need. He stated:
“We’ve found ourselves in a worst-of-all-worlds situation—with the wrong incentives—discouraging people from working while the taxpayer funds a spiraling bill. A wasted generation, one-in-eight young people not in education, employment, or training, and those who genuinely need support not always receiving the dignity they deserve. That’s unsustainable, indefensible, and unfair—people feel that in their bones.”
Some MPs leaving the meeting said they were reassured by Starmer’s words, accepting the need for welfare reform as long as it aligns with Labour values. Others remained concerned about potential reductions to benefits like the Personal Independence Payment, which helps people maintain independence.
Meanwhile, a coalition of charities—including Disability Rights UK, Citizens Advice, Scope, and Sense—has urged Chancellor Reeves to reconsider planned benefit cuts. In a letter, they argued that reducing welfare does not necessarily improve employment rates.
Ministers remain concerned about the growing number of benefit claimants since the Covid-19 pandemic. As of January, 9.3 million people aged 16 to 64 in the UK were classified as economically inactive—a rise of 713,000 since the pandemic. The Department for Work and Pensions reports that 2.8 million people are not working due to long-term illness.
Last year, the government spent £65 billion on sickness benefits, with projections indicating this figure will rise by tens of billions before the next general election. Some reforms are already in motion, including plans to deploy 1,000 work coaches to help the long-term unemployed find jobs.
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