The Chancellor of the Duchy of Lancaster, Pat McFadden, has acknowledged that welfare reform has historically been a contentious issue within the Labour Party, as the Government faces growing pressure from MPs to reconsider planned cuts to health and disability benefits.
Speaking on BBC Radio 4’s PM programme, Mr McFadden stressed that while party discipline was not within his remit, he believed that the rising number of people claiming benefits could not be ignored. His comments come amid a backlash from Labour MPs over changes to personal independence payments (Pip) and the sickness element of universal credit.
Concerns over rising benefit claims
The Government recently announced stricter eligibility criteria for Pip and confirmed that the health-related element of universal credit for new claimants would be halved in 2026 before being frozen. These measures, Chancellor Rachel Reeves argued in Wednesday’s spring statement, are necessary to ensure long-term economic stability.
Mr McFadden defended the reforms, pointing to the sharp rise in the number of people on long-term sickness and disability benefits.
“Right now, we have 1,000 people a day going on to long-term sickness and disability benefits,” he said. “That’s a city the size of Leicester every year.”
“If we didn’t act, we’d be moving from a situation where there’s about 2.9 million people on these benefits to 4.3 million by the end of the decade.”
He insisted that reform was necessary, provided that adequate support was in place for those who could work.
Party divisions emerge
Labour MPs have voiced concerns about the impact of the welfare changes, with some urging the Government to reconsider its approach. During Wednesday’s Commons debate, Labour MP Rachael Maskell stressed the need for balance between financial responsibility and social justice.
“So can we look at the DWP (Department for Work and Pensions) changes again?” she asked. “Of course, protecting the most vulnerable, but it’s those people just above that band who are set to lose, and we’re really worried about those.”
Mr McFadden did not directly address the possibility of Labour MPs rebelling against the reforms but acknowledged the difficulty of welfare debates within the party.
“There’s a history of welfare debates being difficult in the Labour Party, I acknowledge that,” he said. “But for my colleagues, MPs, I would ask them to ponder a few things.”
When pressed on whether there would be consequences for those who voted against the Government’s plans, he deferred responsibility. “I don’t want to duck your question, but of my cabinet responsibilities, discipline of MPs isn’t one of them. It’s a question for the chief whip.”
Government promises ‘compassionate’ approach
Earlier on Thursday, Work and Pensions Minister Sir Stephen Timms sought to reassure critics that the welfare cuts would be introduced in a “compassionate” and “managed” manner. He insisted that the reforms were “definitely not being rushed” and that the Government remained committed to protecting the most vulnerable.
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However, opponents argue that the proposed cuts could leave thousands struggling to make ends meet. Disability rights campaigners have warned that the changes to Pip could disproportionately affect those with fluctuating conditions, while unions have criticised the freezing of universal credit health benefits as “punitive and short-sighted.”
Economic and political implications
Labour’s plans to reform welfare are part of a broader effort to control public spending while maintaining support for those in need. Ms Reeves has positioned herself as a fiscally responsible chancellor, aiming to balance the books without resorting to drastic spending cuts in other areas.
However, the proposed welfare reforms risk deepening divisions within the party, with some MPs concerned that the measures could undermine Labour’s commitment to social justice. The Government now faces the challenge of convincing both its backbenchers and the public that the changes are both necessary and fair.
With tensions rising and opposition from within the party growing, Labour’s long-standing struggle with welfare policy is once again at the forefront of political debate. Whether the Government can navigate these challenges without significant internal conflict remains to be seen.
