Sir Keir Starmer is facing a backlash as he pushes forward with sweeping welfare cuts that could leave over 600,000 disabled people struggling to make ends meet.
Under radical new plans set to be unveiled, some of the UK’s most vulnerable could lose £675 a month.
Despite intense criticism from campaigners and MPs, ministers are set to tighten the eligibility rules for Personal Independence Payments (PIP), a key disability benefit, in a move that is expected to slash government spending by up to £5bn.
The plans, spearheaded by Work and Pensions Secretary Liz Kendall, come as the government looks to curb welfare costs.
While a proposed freeze on PIP increases has been scrapped, the tougher criteria mean thousands of claimants could see their support disappear altogether.
Some of the UK’s most vulnerable could lose £675 a month (Image: Getty)
The scale of the cuts has alarmed disability rights groups, who warn the changes will hit the poorest and most vulnerable hardest.
The Resolution Foundation think tank warned that cutting PIP by £5bn in 2029-30 by raising the qualifying threshold for support could mean about 620,000 people lose £675 a month on average
MPs have lobbied No 10 to rethink the policy, describing it as “perverse” to target those unable to work.
Even senior cabinet ministers have reportedly raised concerns about the government’s handling of the issue, as tensions rise within Westminster.
In a bid to soften the blow, Kendall will introduce a ‘right to try’ guarantee, allowing claimants to test working without the risk of losing their benefits permanently if it doesn’t work out.
Additionally, £1bn of the projected savings will be reinvested into back-to-work schemes and job centre support.
However, critics argue these measures are little more than a sticking plaster. With economic growth slowing – growth contracted in January – and the job market struggling, some believe the reforms will push thousands into financial hardship with little chance of securing work.
The final details of the cuts will be laid out in Kendall’s announcement on Tuesday, but it will be Chancellor Rachel Reeves who reveals the full impact in the upcoming spring statement on March 26.
With the government already under pressure over economic challenges, Labour MPs are warning this could be the biggest test of Starmer’s leadership yet.
Health Secretary Wes Streeting has defended the plans, insisting they will stop people being “written off” and encourage more to contribute to society. But with MPs bracing for a fierce showdown in Parliament, many fear this could be the most contentious week yet for the Labour government.
The Resolution Foundation is predicting the chancellor, Rachel Reeves, is on course for a budget deficit of about £4.4bn due to weaker growth, higher borrowing costs and lower tax revenues, having previously estimated £9.9bn in headroom in 2029-30.
The thinktank’s research director, James Smith, said the jobs market was in “recession territory”, which would hinder the government’s hopes of getting more disabled people into work or taking on more hours.
He added: “Crucially, she should avoid turning the spring statement into a ‘sticking plaster’ budget, with long-term thinking on welfare reform undermined by the quest for short-term savings that could cause real harm.”
No official announcement has been made on changes to benefits. Government ministers have urged people to wait for the details of the changes to be announced on Tuesday and warned people against listening to speculation.