DWP benefits reform to spark surge in Britons claiming top level payments with 400,000 extra out of work
Labour is under fire from its own MPs after ditching Tory welfare reforms, a move expected to put nearly 400,000 more people on sickness benefits by 2030.
Work and Pensions Secretary Liz Kendall scrapped stricter rules that would have required those with mobility and mental health issues to seek work. Now, official estimates suggest three million people will receive the highest tier of Universal Credit health payments 370,000 more than if the Conservative plan had stayed in place.
Critics say the reversal undermines Labour’s promise to cut £5 billion from welfare spending. Shadow Chancellor Mel Stride slammed the decision, calling it “incompetent” and accusing Labour of abandoning “principled reforms” just to meet budget rules. Meanwhile, Green Party co-leader Adrian Ramsay branded the move “morally repugnant,” arguing it targets the most vulnerable to balance the books.
The controversy has sparked rebellion among Labour MPs, with at least eight vowing to vote against the reforms. High-profile critics include Greater Manchester Mayor Andy Burnham, who said the government is making “the wrong choice” by tightening disability benefit access.
The Department for Work and Pensions defended the changes, saying they replace a flawed system that “trapped people in benefits” and will instead fund a £1 billion support program to help more into work. But the Office for Budget Responsibility remains skeptical, warning the plan could actually reduce workforce participation by 16,000 people.
With tensions rising, Labour’s welfare overhaul is shaping up to be its first major internal battle one that could test the party’s unity just months into power.
