The Labour Party government in the UK announced sweeping reforms to the welfare system on Tuesday, aiming to save £5 billion ($6.5 billion) amid a cash-strapped economy. While the government argues that the changes will encourage people to return to work, critics warn that the cuts could harm some of the country’s most vulnerable citizens.
Work and Pensions Secretary Liz Kendall presented the overhaul in the House of Commons, stating that the government had inherited a “broken” social security system that “is failing the very people it is supposed to help and holding our country back.” She pointed to statistics showing that one in 10 working-age people in the UK are claiming sickness or disability benefits, with “millions of people who could work trapped on benefits.”
The government plans to implement the changes, which are still subject to parliamentary approval, with the goal of saving over £5 billion by 2030. However, not all aspects of the welfare system will be cut. The overhaul also includes an above-inflation increase to universal credit, a key welfare benefit, and a £1 billion investment to help remove barriers to work, including new rules that allow welfare recipients to take on paid jobs without losing their benefits.
Kendall argued that Britain’s rising expenditure on sickness and disability benefits is unsustainable, especially compared to other nations. “In most comparable countries, spending on sickness and disability benefits is either stable or falling—while ours continues to inexorably rise.” However, the Disability Benefits Consortium, which represents over 100 charities and organizations, condemned the proposals, labeling them as “cruel” and claiming that they would disproportionately impact those unable to work and reliant on benefits for survival.
Sarah Hughes, chief executive of mental health charity Mind, echoed concerns, stating that the cuts would make it harder for individuals to access support, exacerbating the country’s mental health crisis.
Prime Minister Keir Starmer’s center-left government has faced declining popularity as it navigates a sluggish economy and overstretched public services. Treasury Chief Rachel Reeves is expected to announce additional cuts in her spring budget statement on March 26, responding to lower-than-expected tax revenues and rising borrowing costs.
The welfare changes followed weeks of speculation about the depth of the cuts. Labour lawmaker Imran Hussain expressed concern for the most vulnerable, saying that “thousands of the most severely disabled people in my constituency, and millions across the U.K., have watched in disbelief as politicians debate cuts to the support that enables their very survival, leaving many at breaking point.”
