Labour Faces Backlash Over Disability Benefit Cuts
Sir Keir Starmer faces mounting pressure as the government prepares to announce major changes to the welfare system this week, with concerns that vulnerable people could bear the brunt of cost-cutting measures. On 26th March, the government is set to outline plans to reduce spending on health benefits, with particular focus on tightening eligibility for Personal Independence Payments (PIP), a crucial disability benefit. While an earlier proposal to freeze PIP payments for a year has been dropped following backlash from Labour MPs, significant unease remains about the impact of these changes.
More than 3.6 million people currently rely on PIP to help with additional costs linked to disabilities and long-term health conditions, from mobility aids to transport costs. The idea of freezing payments sparked intense opposition from Labour backbenchers, with some MPs calling the move “unforgivable.” One MP told the BBC, “Part of the social contract is that people with complex disabilities are supported.” Another expressed frustration over punishing those who are “especially vulnerable and have severe disabilities.”
Treasury Minister Emma Reynolds has urged MPs to wait for the official announcement, stating, “some colleagues are jumping to conclusions about our plans before they’ve heard them.” She emphasised that the government remains committed to supporting “the severely disabled and the most vulnerable.” The welfare reform proposals form part of the upcoming Spring Statement, which Chancellor Rachel Reeves is due to deliver. The government faces an increasing budget shortfall, with the Office for Budget Responsibility (OBR) estimating that the “headroom” Reeves had in October has been wiped out by rising borrowing costs. Some Labour MPs argue that instead of pursuing cuts, the government should consider revising borrowing rules or introducing new wealth taxes, but Reeves’ team insists that tax rises or increased borrowing would spook the financial markets.
Spending on health and disability benefits is forecast to rise from £64.7 billion in 2023-24 to £100.7 billion by 2029-30, with PIP payments expected to nearly double. The rapid rise in claimant numbers since the pandemic has also raised questions about long-term sustainability. Over the past four years, disability-related claims have surged by 37%, with nearly half of recipients citing mental health conditions. Tom Waters of the Institute for Fiscal Studies noted that “a majority of the increase” is due to claimants listing mental and behavioural issues as their primary condition.
Speaking on the BBC’s Sunday with Laura Kuenssberg programme, Health Secretary Wes Streeting suggested there is an “overdiagnosis” of mental health conditions, a remark that prompted a strong response from mental health charity Mind. The charity warned against using language that could further stigmatise those in need of support. Meanwhile, Shadow Education Secretary Laura Trott criticised the government’s approach, accusing it of being “all over the place and divided” on welfare reform.
The SNP has condemned the planned cuts, urging the government to scrap measures that could disadvantage disabled people. SNP Westminster leader Stephen Flynn argued that Labour has “boxed itself in with its Tory austerity rules.” Meanwhile, Citizen’s Advice CEO Dame Clare Moriarty accused the government of “pulling the quick and easy lever” by cutting financial support rather than ensuring that people receive proper assistance to enter the workforce.
In a column for The Times, Greater Manchester Mayor Andy Burnham called for caution, acknowledging the need for reform but warning that “cutting the support available to disabled people who are unable to work” is not the answer. With tensions running high within Labour ranks and among advocacy groups, all eyes are on Tuesday’s announcement to see how far-reaching the welfare reforms will be.
For more updates on the government’s welfare reform plans and how they may affect Londoners, visit EyeOnLondon. We’d love to hear your views in the comments.
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