Rachel Reeves faces mounting pressure over expected cuts to disability benefits—sparking fears that thousands of vulnerable people could be plunged into poverty.
With the party’s crunch Spring Statement just weeks away, the Chancellor is widely expected to unveil up to £5 billion in cuts to welfare spending. This will coincide with a Green Paper from the Department for Work and Pensions, outlining a controversial shake-up of the system.
Britain’s welfare bill has skyrocketed, with spending on health and disability benefits reaching £65 billion last year—a 25% increase from pre-pandemic levels. The cost is predicted to hit £100 billion before the next general election.
Secretary Liz Kendall has defended Labour’s stance, claiming they inherited a system that is “failing sick and disabled people” while placing an “unsustainable” burden on taxpayers. She insists reforms will help more people into work and reduce dependency on benefits.
But critics argue the changes will come at a devastating human cost.
Charities and think tanks have slammed potential Labour cuts (Image: Getty)
Charities and think tanks have slammed potential Labour cuts, warning that disabled people—who already face some of the worst levels of hardship—could be pushed even further into crisis.
The Joseph Rowntree Foundation (JRF) has sounded the alarm, revealing that half of those receiving health-related Universal Credit are struggling to afford essentials. Shockingly, nearly a quarter (24%) of working-age adults in households claiming the benefit have had to turn to food banks in the past year.
JRF Senior Policy Adviser Iain Porter said: “Many people will be waiting anxiously to hear what the government is planning. But talk of cutting billions is causing deep fear among those with serious and ongoing health conditions.”
He told the Independent that the government must not “pass the financial pain onto those who can least afford it.”
Changes to the Work Capability Assessment (WCA)—a crucial test determining whether people qualify for additional support—are expected to be at the heart of Labour’s plans. Ministers are reportedly aiming to save £1.3 billion per year by tightening eligibility, a move that some fear could see hundreds of thousands lose their benefits.
Reeves has so far refused to rule out cuts to the Personal Independence Payment (PIP)—which helps disabled people with extra living costs, even if they are working. Previous Conservative proposals suggested means-testing the benefit or replacing cash payments with vouchers, ideas that many fear could be back on the table.
The influential Resolution Foundation think tank has urged Labour to steer clear of such drastic cuts, warning that they would “undermine the very purpose of PIP.” Instead, it has called for reforms focused on rebuilding trust in the system and helping more people transition back into work.
With the cost-of-living crisis still biting and Britain facing a growing sick and ageing population, Labour is under pressure to balance economic prudence with social responsibility.
Senior economist Louise Murphy told the : “Britain is getting older and sicker. The working-age incapacity and disability benefits bill is set to rise by £32 billion over the decade. Labour needs long-term solutions, not just short-term cuts.”