Chancellor Rachel Reeves is facing growing concerns from within her own party over planned cuts to the benefits system, with Labour backbenchers warning that disabled people are “frightened” about the potential impact. Reeves has described the current welfare system as “broken” and ineffective, arguing that it fails to support those in need, incentivize work, or provide value for taxpayers. However, her proposed reforms have sparked fears among MPs and advocacy groups that vulnerable individuals could be left worse off.
During a visit to Scotland, Reeves emphasized the need for change, stating that the welfare system is not working for anyone. She highlighted the rising cost of benefits, which is projected to increase by billions of pounds in the coming years, and stressed the importance of reforming public services and welfare to free up resources for national defense and other priorities.
The government’s plans aim to reduce the number of working-age people on benefits and encourage more individuals to seek employment. However, recent data shows a significant rise in the number of universal credit claimants with health conditions or disabilities, which has increased by half a million in a year to reach 2.5 million people. This has raised concerns about how the proposed cuts will affect those who rely on benefits for support.
Prime Minister Sir Keir Starmer has denied that the changes amount to a return to austerity but acknowledged that the cost of benefits is “going through the roof.” He argued that the current system is unsustainable both morally and economically, as it discourages people from seeking work and places a growing burden on taxpayers.
Despite these justifications, some Labour MPs have voiced strong opposition to the cuts. Richard Burgon, a Labour backbencher, challenged Starmer during Prime Minister’s Questions, warning that disabled people are “frightened” of the potential changes. Burgon called for alternative measures, such as a wealth tax, to address the UK’s fiscal challenges without “making the poor and vulnerable pay.”
As Reeves prepares to unveil her welfare reform plans, she faces the difficult task of balancing the need for fiscal responsibility with the imperative to protect vulnerable individuals. The debate over the proposed cuts highlights the tensions within the Labour Party and the broader challenges of reforming a welfare system that many see as failing those it is meant to support.
