Dramatic cuts to benefits that have been unveiled by the work and pensions secretary have prompted backlash from charities and trade unions, who have described them as “immoral” and “indefensible”.
With fears as many as one million people could see their benefits reduced, the backlash has been swift. Anela Anwar, chief executive of anti-poverty charity Z2K accused the government of implementing “shocking and dangerous proposals”.
In her statement, Liz Kendall ruled out freezing or means testing personal independence payments (PIP), but announced they will significantly tighten access to the benefit.
She announced the work capability assessment (WCA) will be scrapped in 2028, an increase in benefit claim reassessments and a new ‘Right to try’ scheme to allow people to find work.
Flanked by Sir Keir Starmer and deputy prime minister Angela Rayner, the leadership of the government sent a visible symbol of “unity” with an expected backlash against harsh measures.
Leftwingers like Diane Abbott and Nadia Whittome were expected to lead a rebellion against the measures, Ms Kendall insisted that the system is “broken”.
With an expected bill of £70bn per year by 2030 on disability and long term sickness benefits, Ms Kendall insisted she had no choice.
What are the key benefit changes in Labour’s welfare overhaul?
Labour revealed the extent of its welfare reforms on Tuesday as work and pensions secretary Liz Kendall delivered an announcement in Commons on the plans.
Ms Kendall announced a sweeping number of reforms, with savings amounting to £5 billion by 2029/30 – the end of this parliamentary term.
Concerns changes will worsen child poverty
Several MPs have raised concerns that the government’s welfare reforms could impact levels of child poverty.
Chris Webb, Labour MP for Blackpool South, one of the most deprived constituencies in the UK, said nearly one in two children in his constituency live in poverty.
He told the Commons: “I really worry about the child poverty numbers that these measures could impact on.”
Labour MP Helen Hayes also asked for reassurance that the reforms “will not make child poverty worse for anybody who is a child living in a family where their parents or carers are in receipt of benefits”.
The Dulwich and West Norwood MP added: “Can she tell the House what analysis she has undertaken of the impact of the reforms she is announcing today on child poverty? Will she publish that analysis?”
In her response, Work and Pensions Secretary Liz Kendall said: “We will publish the equality impact analysis and the poverty impact analysis around the time of the spring statement.”
Man with lifelong condition ‘tentatively positive’ after announcement
A man living in “constant pain” from osteoarthritis said he is “tentatively positive” about the Government’s decision to scrap the assessment process for people living with lifelong conditions.
Stephen Kerr, 57, from Northampton, claims personal independence payments (Pip) and described the assessment process as “humiliating” and makes disabled people feel like “fraudsters”.
“You speak to anybody that goes through the process, and it is humiliating. The default position is, ‘you’re a benefit fraudster, you’re a cheat’ and you have to prove that you’re not,” Mr Kerr told the PA news agency.
“I’m quite tentatively positive about the fact that she (Ms Kendall) said that the work capability assessments for people with lifelong conditions won’t be constantly reassessed.”
Disabled people led to ‘breaking point’, Labour MP says
A Labour MP has said many disabled people have been led to “breaking point” during recent discussions around changes to the welfare system.
Imran Hussain, MP for Bradford East, said in the Commons: “The reality remains that over the last few weeks, thousands of the most severely disabled people in my constituency and millions across the UK, have watched in disbelief as politicians debate cuts to the support that enables their very survival, leaving many at breaking point.”
Full story: A million to lose disability benefit as Labour slashes £5bn off welfare bill
An estimated million disabled people will lose their benefits as part of Labour’s overhaul of the ballooning welfare budget.
Work and pensions secretary Liz Kendall announced that the bulk of the changes, aimed at saving £5bn by 2030, would fall on personal independence payments (PIP) by raising the threshold that people can qualify for them.
The Independent’s Political Editor David Maddox has the full story:
Welfare reforms branded ‘crass’ by former Labour minister
Former Labour minister Dawn Butler has labelled the government’s money-saving welfare reforms as “rather crass”.
Ms Butler said the employment service has “always needed reform”, adding: “How we go about it, and the way we go about it, is fundamental and important, and I don’t think it should be linked to saving money, because that’s rather crass, and it’s caused lots of anxiety for my constituents in Brent East and elsewhere.
“The patriotic millionaires have said that just a 2% on assets over £10 million will bring in £22 billion a year. That’s a better way to bring money in to help fill the blackhole that we found ourselves in.”
Kendall asked how she will ‘monitor loss of life’ after Pip changes
John McDonnell has asked how Work and Pensions Secretary Liz Kendall will monitor loss of life as a result of changes to personal independent payments (Pip).
The independent MP for Hayes and Harlington, who was Labour’s shadow chancellor under Jeremy Corbyn, told the Commons: “There are decisions made in this House that stay with you for the rest of your life. This is one of them.”
Mr McDonnell later added: “The reality is trying to find up to £5 billion worth of cuts by manipulating, by changing the Pip rules, the criteria will result in immense suffering and – we’ve seen it in the past – loss of life. So what monitoring – independent monitoring – will take place that will be reported to this House and what threshold of suffering will it take to take an alternative route to supporting disabled people?”
Ms Kendall replied: “I take very seriously the issues that I’ve announced today.”
She said the Government was “overhauling our safeguarding processes”, adding: “My objective is to improve the lives and life chances of sick and disabled people – for those who can work, to support them to get into work.”
Oxfam says reforms are a ‘deplorable political choice’
Oxfam’s domestic poverty lead Silvia Galandini said: “After the recent slashing of international aid, the Government’s plans to cut £5 billion in support for people living with illness and disabilities is another deplorable political choice.
“It unnecessarily risks pushing more people into poverty and hardship while the ballooning bank balances of the UK’s super-rich once again escape scot-free.
“While it’s critical to break down barriers to employment for everyone – including people with disabilities and long-term health issues who can and want to be in paid work – this cannot be achieved by further restricting and cutting an already inadequate social security system.
“A fairer way to help fix our broken social security system and help build an economy that works for everyone is by taxing the UK’s super rich, like a 2 per cent tax on those with assets of over £10 million which would raise £24 billion every year.”
Universal Credit rates to change – with winners and losers
Labour says they will “rebalance payment levels” in Universal Credit to “promote work and address perverse incentives” in the system, beginning in April 2026.
To do this, they firstly announced an across-the-board increase to the standard Universal Credit allowance for new and existing claims. Ms Kendall notes that this marks the first time the payment has received an above-inflation boost.
This will be a boost of £7 a week, to £98 a week.
However, this will be accompanied by freezes to the health element rates of Universal Credit. For those already receiving this, it will be frozen at £97 a week until 2029/30. For new claims this rate will be reduced to £50 a week.
In real-terms, this will mark a significant cut to the benefit. However, this will be offset in part by the standard rate allowance, while everyone claiming the health element also receives.
Sir Keir Starmer says welfare system is ‘fundamentally broken’
Sir Keir Starmer has said that the welfare system “does not work” as his government announces the biggest set of changes in a generation.
He added that Labour will “always protect the most severely disabled” but said it would be “morally bankrupt” to allow young people to become trapped out of work.
