Labour faces revolt over £5bn welfare spending cuts

Labour faces revolt over £5bn welfare spending cuts
Credit: Flude/The Guardian

UK (Parliament Politics Magazine) – Labour MPs oppose £5bn benefit cuts, rejecting proposed disability payment changes and demanding evidence before backing the legislation.

As reported by the Guardian, dozens of Labour backbenchers, firm in their opposition to a £5 bn benefits cut, say they will reject the bill despite offers of extra child‑poverty support.

How will June’s benefit cuts legislation affect disability payments?

The government will introduce a bill in the House of Commons in early June to implement the £5bn benefit cuts, with new rules expected to come into force soon after.

The legislation will involve stricter criteria for personal independence payments, aiming to limit access for individuals with disabilities.

Under the revised changes, individuals who cannot wash the lower part of their body will no longer qualify for PIP, unless they meet additional limiting conditions.

What strategy are ministers considering to gain support for benefit cuts?

To gain rebel support, ministers plan to release their long-delayed child poverty strategy just before important Commons votes. This will include extra financial support for families with children under five.

Work and Pensions Secretary Liz Kendall is reviewing plans aimed at assisting younger children. This measure would be more cost-effective than eliminating the £3.6bn two-child limit on benefit payments.

Officials have acknowledged that, given the financial climate, the cap cannot be abolished shortly.

What did Rachael Maskell say about the government’s benefits cuts?

Numerous Labour MPs, frustrated with their party’s proposed cuts, have stated they will not engage in any ‘trade-off’ that affects vulnerable groups like children and the disabled.

Rachael Maskell, the Labour representative for York Central, who is against the proposed bill, stated,

“You can’t compromise with a trade-off under which you say you will take more children from poor families out of poverty by placing more disabled people into poverty. That simply cannot be right.”

She added,

“The government really does need to start listening to MPs, civil society and the population at large because there is really widespread opposition to these policies.”

Why vote on benefit cuts before OBR’s report?

Labour MPs have raised concerns over the timing of the vote on benefit cuts. They argue it should not take place before the Office for Budget Responsibility has completed its review of the cuts’ impact on moving people from welfare to employment. However, the OBR’s findings are not expected until the autumn.

How did Neil Duncan-Jordan respond to the proposed benefits cuts?

Neil Duncan-Jordan, another Labour MP opposing the cuts, won Poole in Dorset by a narrow victory of 18 votes in last July’s election, defeating a Tory majority of 19,000. He highlighted that more than 5,000 of his constituents rely on PIP.

He stated he could not back any kind of compromise or “trade-off,” adding,

“There is not a hierarchy of need. The whole policy is wrong. It goes without saying that if these benefit cuts go through, I will be toast in this seat.”

According to Duncan-Jordan, asking MPs to vote on the cuts before reviewing the OBR’s reports was unreasonable. He said, “We are being asked to take a leap of faith. It does not make sense.”

What did Keir Starmer say about reforming the benefit system?

The British Prime Minister, Keir Starmer, argued that reforming the benefit system is necessary on moral and economic grounds. He said,

“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.”

Mr Starmer added,

“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.”

What did OBR say about the impact of welfare reforms on the Labour market?

According to the OBR’s report accompanying Chancellor Rachel Reeves’ spring statement, it states,

“The full impacts of these policies are very uncertain, given the complexity of how trends in health, demography, and the economy interact with the benefits system (as our 2024 welfare trends report explored).”

It said,

“Welfare reforms incorporated into previous OBR forecasts have in many cases saved much less than initially expected, such as the transition from disability living allowance to Pip, or taken far longer to implement than expected, as was the case for the roll-out of universal credit.”

The OBR continued,

“We will undertake a full assessment of the potential impact of the Green Paper polices on the labour market ahead of our next forecast.”

What did John McDonnell say about the impact of the benefit cuts?

John McDonnell, former shadow chancellor, warned that the £5 billion cuts could result in deaths. He said,

“The reality is trying to find up to £5 billion worth of cuts by manipulating, by changing, the PIP (Personal Independence Payment) rules, the criteria will result in immense suffering and – we’ve seen it in the past – loss of life.”

What did Fran Heathcote say about benefit cuts and their impact?

In response to the cuts, PCS General Secretary Fran Heathcote described the move as immoral. She said,

“Targeting the most vulnerable with benefit cuts to meet arbitrary fiscal rules is an immoral choice at any time, but at a time of rising poverty, long NHS waiting lists, and when the cost-of-living crisis continues to bite, it is abhorrent.”