UK (Parliament Politics Magazine) – Liz Kendall advocates for increasing work opportunities to reduce the benefits bill, arguing that rising employment will inevitably lower welfare costs.
The Work and Pensions Secretary has argued that getting more people back into work is the most effective way to cut the benefits bill. This comes as Chancellor Rachel Reeves seeks savings before the 26 March spring statement.
What did Liz Kendall say about reducing the benefits bill?
Ms Kendall stated,
“I think the only way that you get the welfare bill on a more sustainable footing is to get people into work. And you know, we will be bringing forward big reforms that support people into work, that get them on a pathway to success.”
She refrained from commenting on specific policy reforms but clarified the objective of changing the system. The work and pensions secretary stated,
“I want to be clear about our objective: it’s reforming the system, changing the system to provide people with the support that they need because that’s the only way.”
When asked how ministers would manage the finances, Ms Kendall responded,
“We don’t begin with a spreadsheet. We begin with people—those who have hopes and dreams.”
In response to a question regarding possible conflicts with Chancellor Rachel Reeves about the scale of spending cuts, she clarified,
“Not at all. She’s committed to reform and changing the system.”
A section of Labour strategists believed taking a firm stance on benefits claimants as a potential way to attract right-wing supporters who may consider switching to Reform.
Responding to the backlash, Ms Kendall stated the Labour party’s priority is supporting those in need. She argued,
“The Conservatives would have you believe that all benefit claimants, including the sick and disabled, are nothing but skivers and scroungers. But that’s simply untrue.”
Ms Kendall said that the Department for Work and Pensions requires changes to operate more efficiently. She highlighted,
“By shifting our work coaches’ focus away from bureaucratic tasks and toward personalised support, we can better integrate with employers, healthcare, and skills development, using existing resources to improve the system.”
How is Rachel Reeves tackling welfare cuts to meet fiscal targets?
As Chancellor Rachel Reeves focuses on welfare spending, Ms. Kendall pointed out that the priority should be returning people to work, not just focusing on financial figures.
The Guardian reported that a green paper on welfare will be published by the Department for Work and Pensions in the coming days, ahead of Rachel Reeves’ statement.
The Chancellor’s plans to implement spending reductions to meet fiscal goals come as the Independent Office for Budget Responsibility revises down its growth forecasts.
New reports reveal that Labour prepares to announce significant welfare cuts as part of Ms. Reeves’ spring statement. On 26 March, she will present her financial plans for the government, which include multiple department cuts.
What are the major announcements Labour could make on 26 March?
Work Capability Assessment Overhaul: Labour plans to reform the work capability assessment (WCA), with plans to save £1.3bn annually. This reform aims to evaluate work capability and entitlement to support more efficiently.
PIP Changes: There may be changes to the Personal Independence Payment (PIP) system, including potential reforms in assessment methods and rates of payment.
Potential Voucher Scheme: There’s a possibility that weekly PIP payments could be replaced by vouchers, though this is not confirmed and has faced backlash from some charities.
Fraud Crackdown Measures: New powers for the DWP to recover money from fraudsters and those in debt to the department, potentially saving £1.5bn over five years. This includes the ability to seize assets and investigate bank accounts for fraud detection.