Prime Minister Sir Keir Starmer is facing mounting unrest among Labour backbenchers as the Government prepares to unveil significant reforms to the welfare system. Work and Pensions Secretary Liz Kendall is set to announce wide-ranging changes on Tuesday, aiming to encourage more people back into employment while addressing concerns over the soaring benefits bill.
However, reports suggesting that the reform package could include cuts to the personal independence payment (PIP) – the primary disability benefit – have sparked an outcry among Labour MPs. Several backbenchers have criticised a lack of communication from ministers, with one describing recent engagement sessions as “a tick-box exercise” rather than a genuine consultation. Another MP told the PA news agency that a number of colleagues had already signalled their intention to vote against any proposal that would reduce support for disabled individuals.
Backlash prompts rethink on PIP cuts
Amid growing opposition, reports indicate that the Government may be reconsidering plans to freeze the level of PIP, which would effectively amount to a real-terms cut for 3.6 million claimants if it failed to rise with inflation. However, some MPs have expressed frustration that such proposals were leaked before any official decision had been reached. One Labour backbencher suggested to PA that the leak had been made in “bad faith” and risked undermining trust within the party.
Ministers have defended the need for reform, pointing to the sharp increase in the number of people claiming sickness and disability benefits in England and Wales, which has risen from 2.8 million in 2019 to approximately 4 million today. The benefits bill has surged in tandem, reaching £48 billion in 2023-24 and projected to rise further to £67 billion by 2029-30 – a level ministers argue is unsustainable.
On Sunday, Health Secretary Wes Streeting attempted to downplay speculation over potential cuts, stating that the full details of the proposals had yet to be finalised. “What I do know is the Work and Pensions Secretary wants to support people who need help the most,” he told the BBC. “We’ve got to make sure that there is a wide range of support and that everyone’s playing their part.”
Labour divisions over welfare reform
Greater Manchester Mayor Andy Burnham has also weighed in on the debate, urging caution over any measures that could reduce financial support for disabled people. Writing in The Times, Mr Burnham acknowledged that the welfare system required “a radical overhaul” but argued that the focus should be on helping people into work rather than cutting benefits.
“I would share concerns about changing support and eligibility to benefits while leaving the top-down system broadly in place,” he wrote. “It would trap too many people in poverty. And to be clear: there is no case in any scenario for cutting the support available to disabled people who are unable to work.”
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Government sources have hinted that Ms Kendall’s reforms will include a “right to try guarantee,” allowing disabled individuals to seek employment without the immediate risk of losing their benefits should they struggle to maintain a job. This policy aims to reduce the fear of financial instability among claimants while encouraging greater workforce participation.
Conservatives criticise labour’s approach
Despite internal divisions within Labour, the Conservative opposition has been quick to criticise the Government’s handling of the welfare reform debate. Shadow Work and Pensions Secretary Helen Whately accused Labour of being “divided” on welfare policy and failing to provide a clear strategy for reducing benefit expenditure.
“The Government’s dithering and delay is costing taxpayers millions every day and failing the people who rely on the welfare system,” Ms Whately said. “Under new leadership, the Conservatives are the only party united in the need to reduce spending on benefits – which is why we committed to saving £12 billion a year from the welfare bill, a pledge that Labour scrapped.”
The upcoming announcement from Ms Kendall is expected to clarify the Government’s position and address concerns from both Labour MPs and disability rights campaigners. However, with growing dissent within his own ranks, Sir Keir Starmer may face a significant battle to push through any contentious reforms while maintaining party unity.
