A million people face having their benefits slashed as Rachel Reeves looks set to risk the wrath of ministers to cut spending. Cost-saving measures are due to be announced next week, with as much as £5 billlion of welfare spending set to be axed. Measures look set to include changes to eligibility for over a million people as well as changes to rules governing who can apply for benefits.
The measures could mean that only the most severely disabled will be entitled to welfare, with current recipients who struggle with mental health conditions or lack the ability to wash or dress themselves set to miss out. Sir Keir Starmer has been widely criticised for the proposed cuts by members of his own party, with cabinet members Ed Miliband, Angela Rayner, and Lucy Powell understood to be concerned at the plans.
More than half of Starmer‘s Cabinet are said to have urged the Reeves to rethink her plans to overhaul the benefits system in a bid to balance the books ahead of her spring statement.
It is understood that ministers spoke out at a Cabinet meeting on Tuesday which overran, according to Bloomberg.
Ministers are believed to have expressed frustration that the welfare cuts are coming so soon after the foreign aid budget was raided and raised fears that they would be difficult to sell to Labour MPs.
The move to cut foreign aid in order to raise defence spending led to International Development Minister Annelisse Dodds resigning.
Under the proposals, Liz Kendall, the work and pensions secretary, is expected to cut the top rate of incapacity benefit, which currently means that those who are unfit to do any form of work are paid twice as much as jobseekers, taking in £800 a month.
Other measures include making those on long-term sick prepare for work as well as abolishing the “work capability assessment” for incapacity benefits.
It is also expected that major changes to the eligibility criteria for those who receive Personal Independence Payment will be made, potentially making up the bulk of the planned £5 billion savings target.
However, plans to prevent the payment from rising in line with inflation look set to be dropped after a backlash from Labour MPs.
Starmer has attempted to defend the cuts, arguing that the current welfare system is broken and in need of reform.
He said this week: “We inherited a system which is broken, it is indefensible, economically and morally, and we must and we will reform it.
“We will have clear principles, we will protect those who need protecting. We will also support those who can work, back to work, but Labour is the party of work, we’re also the party of equality and fairness.”
Labour MP Brian Leishman blasted the plans, telling Times Radio that it was “a ridiculous notion to actually think that we can incentivise people that are not able to work into work. It shows a basic lack of humanity.”
