The UK government’s proposed cuts to the welfare budget are testing the loyalty of Labour MPs, as Prime Minister Sir Keir Starmer’s policy team holds private meetings in Downing Street to discuss significant reforms. The cuts, which could amount to £5-6 billion—twice as deep as those announced in last autumn’s Budget—have sparked concern among MPs, even those typically loyal to the leadership.
The discussions have focused on the principles of welfare reform rather than specific details, with the escalating costs of supporting those deemed unfit for work highlighted in a slideshow presentation. Sir Keir Starmer has described the current system as “indefensible, economically and morally,” emphasizing the need for reform. However, his team has faced pushback from MPs worried about the impact of cuts on vulnerable groups, particularly those receiving disability benefits.
The full extent of the cuts will be revealed in the Spring Statement, but Work and Pensions Secretary Liz Kendall is set to deliver a major speech next week and publish a “Green Paper,” outlining a blueprint for reform. While the parliamentary party broadly agrees that the welfare bill is unsustainable without changes, some on the Left of the party oppose any cuts, with MP Richard Burgon urging the government to consider a wealth tax instead.
The government argues that the current system creates perverse incentives, with some individuals receiving around £400 more per month if assessed as having limited capacity to work compared to those actively seeking employment. This gap is expected to narrow under the proposed reforms. However, the government faces a tougher challenge in convincing MPs to support changes to Personal Independence Payments (PIP), which are non-means-tested benefits for individuals with long-term physical or mental health conditions.
At Prime Minister’s Questions, Liberal Democrat leader Sir Ed Davey called on Sir Keir to assure that disability benefits for those unable to work would not be cut. No such assurance was given, highlighting the political sensitivity of the issue. Critics argue that PIP cuts contradict the narrative of providing opportunities to those out of work, as many recipients rely on these payments to remain employed.
The proposed reforms have sparked “heartfelt conversations” among MPs, with some expressing strong opposition. One MP warned that cutting disabled benefits would be a “red line,” while another described freezing PIP as “unforgivable.” Concerns were also raised about the timing of the cuts, with MPs arguing that NHS waiting lists should be reduced first, and reforms should be implemented in a growing economy rather than a stagnant one.
Despite these concerns, the government remains determined to push forward with welfare reform, backed by a large majority and the recently-formed Get Britain Working Group of Labour MPs. However, even within this group, there are signs of dissent, with Stoke South MP Allison Gardner withdrawing her support, citing the need to better reflect the needs of those with severe disabilities.
While there is broad agreement on the need for welfare reform, implementing it in practice is proving to be a delicate balancing act. The government must navigate the concerns of its own MPs while addressing the fiscal challenges posed by an unsustainable welfare bill. As the debate continues, the loyalty of Labour MPs will remain under scrutiny.
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