Labour is set to reform sickness and disability benefits, with cuts expected soon as Chancellor Rachel Reeves outlines urgent plans for change
London: Labour is making some big moves regarding sickness and disability benefits. Chancellor Rachel Reeves has been pretty vocal about needing to cut back on welfare spending. She’s not holding back, saying she’ll act fast to make these changes happen.
There’s a lot of chatter about how the government plans to overhaul these benefits. The Department for Work and Pensions is expected to drop more details in the Spring, but Reeves hinted we might hear something even sooner.
In a recent interview, she pointed out how the Conservatives have let the benefits bill spiral out of control, costing over £8 billion more than expected. She’s determined to tackle the rising costs of health and disability benefits, calling it an urgent issue that can’t be ignored.
On Wednesday, she’ll be speaking in Oxfordshire about boosting economic growth, and it sounds like benefit changes will be on the agenda too. The focus seems to be on reducing the number of people claiming disability benefits, which has shot up to 3.7 million since early 2020.
Labour believes these numbers are unsustainable, with a whopping £56.4 billion projected to be spent on these benefits next year. Prime Minister Keir Starmer has made it clear that his government will be tough on spending if necessary.
One of the key changes could be to the work capability assessment, which determines if someone is fit for work. The Treasury is aiming to save £1.3 billion through these reforms, which could mean fewer people qualifying for benefits.
There are also rumors about changes to the personal independence payment and more powers for the DWP to tackle benefit fraud. However, disability charities are pushing back, arguing that cutting these benefits would push vulnerable people deeper into poverty.
Ayla Ozmen from Z2K highlighted that many low-income households already struggle to afford basic necessities. She stressed that instead of cuts, we need to invest in the social security system.
Meanwhile, a new review is underway to help ill and disabled people find work, led by former John Lewis boss Sir Charlie Mayfield. The findings will come out a few months after Labour reveals its plans.
Work and Pensions Secretary Liz Kendall emphasized the need to support people in getting and keeping jobs, especially with the rising costs of long-term sickness benefits.
