Prime Minister Sir Keir Starmer has described the rising cost of sickness and disability benefits as “devastating” for public finances, following the government’s announcement of a major welfare system overhaul. The reforms, unveiled on Tuesday, aim to save £5 billion annually by encouraging more people to work while protecting those unable to do so. However, the changes have sparked criticism from Labour backbenchers, unions, and charities, who fear they could push more disabled individuals into poverty.
The government’s plan includes tightening eligibility criteria for the Personal Independence Payment (PIP), a benefit designed to assist those with long-term illnesses or disabilities. The Resolution Foundation think tank estimates that over one million people could lose access to PIP under the new rules. Ruth Curtice, the foundation’s chief executive, noted that the changes are “quite detailed,” making it difficult to predict exactly who will be affected.
Work and Pensions Minister Sir Stephen Timms defended the reforms, stating they would result in “substantial savings” and ensure the system’s sustainability. However, Shadow Chancellor Mel Stride criticized the measures as “rushed,” accusing the government of attempting to shore up finances ahead of the Spring Statement. Stride argued that Labour’s proposed £12 billion cut to health-related benefits is both achievable and necessary.
Sir Keir Starmer, writing in The Times, condemned the current system for “wreaking a terrible human cost,” claiming it discourages people from returning to work and fails to provide adequate support. He highlighted the 2.8 million working-age individuals out of work due to long-term sickness, calling it a “damning indictment” of the Conservative government’s welfare policies.
The Confederation of British Industry (CBI) has also weighed in, urging the government not to place additional burdens on businesses. CBI Chief Executive Rain Newton-Smith emphasized the need to avoid making hiring more costly or risky, particularly as the economy seeks to recover and reintegrate two million young people into the workforce.
As the debate over welfare reform intensifies, the government faces mounting pressure to balance fiscal responsibility with the need to support vulnerable citizens. Critics argue that the reforms risk exacerbating poverty and inequality, while supporters insist they are essential for long-term economic stability.
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