Chancellor Rachel Reeves is reportedly facing significant pushback from within her own Cabinet over planned welfare cuts, with more than half of Sir Keir Starmer’s ministers urging her to reconsider the proposals. The backlash comes ahead of her spring statement, where she is expected to announce sweeping changes to the benefits system in an effort to reduce public spending and balance the books.
According to Bloomberg, ministers expressed their concerns during a Cabinet meeting on Tuesday, which ran longer than scheduled. They argued that the welfare cuts, coming soon after reductions to the foreign aid budget, would be difficult to justify to both Labour MPs and the public. Some Cabinet members are even said to be considering resigning if the cuts are too severe, putting Reeves under additional pressure.
Backbenchers have also raised alarms about the proposed changes, warning that they could harm vulnerable households and undermine the party’s commitment to social justice. Despite the criticism, Prime Minister Sir Keir Starmer has defended the need for reform, insisting that the current welfare system is unsustainable both “morally” and “economically.”
Speaking during a visit to Hull, Starmer highlighted the rising cost of welfare, which is projected to reach £70 billion annually—equivalent to a third of the NHS budget or more than the combined costs of the Home Office and prisons. He argued that the system discourages people from seeking work, as many fear they could end up worse off if they attempt to transition into employment.
Starmer denied that the changes would amount to a return to austerity, emphasizing Labour’s commitment to work, equality, and fairness. However, the proposed cuts have sparked a heated debate within the party, with critics warning that they could alienate voters and deepen inequalities.
As Reeves prepares to unveil her spring statement, she faces the challenge of addressing the UK’s fiscal pressures while maintaining support from her colleagues and the public. The coming days will be crucial for the Chancellor as she seeks to navigate these competing demands and deliver a Budget that balances economic responsibility with social equity.
