Labour's £5 Billion Welfare Cuts Plan Sparks Backlash from Disability Groups and Party Members

May 21, 2025
Labour's £5 Billion Welfare Cuts Plan Sparks Backlash from Disability Groups and Party Members
  • Kendall insists that the government is committed to welfare reform not merely for change's sake, but to preserve the system for those who truly require it.

  • She raised concerns about the alarming growth in new Personal Independence Payment (PIP) awards, equating it to adding a city the size of Leicester to the system each year, which she labeled unsustainable.

  • The charity Sense criticized the government's approach, arguing that increasing poverty among disabled individuals is not a viable solution to welfare system challenges.

  • However, disability organizations, including the MS Society, warn that cuts to PIP could jeopardize the independence and financial stability of many disabled individuals, pushing them further into poverty.

  • Labour's Work and Pensions Secretary, Liz Kendall, is set to announce a significant plan for welfare cuts aimed at reducing the welfare bill by approximately £5 billion annually, emphasizing that reform is essential for the survival of the welfare system.

  • Despite the government's firm stance on welfare reform, there is significant dissent within the Labour Party, with over 100 MPs opposing the proposed cuts and local branches expressing their discontent.

  • Kendall argues that public funds must be directed towards those in greatest need to ensure the welfare state remains viable for future generations, as the government projects these reforms will save £5 billion annually by the end of the decade.

  • Meanwhile, Labour leader Sir Keir Starmer and Chancellor Rachel Reeves are facing backlash over plans to means-test winter fuel payments, which has negatively impacted Labour's performance in recent elections.

  • Kendall also highlighted that the UK's employment rate remains below pre-pandemic levels, with rising spending on sickness and disability benefits, unlike in other G7 countries where it is stable or declining.

  • In response to this dissent, media reports suggest that the government might reconsider the two-child benefit cap or the means-testing of winter fuel payments to appease rebellious Labour MPs.

  • Citizens Advice has condemned the government's reforms as a misguided pursuit of short-term savings that could complicate and increase long-term issues.

  • In her speech to the Institute for Public Policy Research, Kendall will further argue that welfare reforms are essential to prevent the collapse of the benefits system, stating that over 800,000 people would lose benefits if eligibility for PIP is tightened.

Summary based on 6 sources


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