A significant policy shift has been announced as the UK government implements comprehensive changes to the welfare system. Prime Minister Sir Keir Starmer described the rising cost of sickness and disability benefits as “devastating” for public finances, following his government’s announcement of a major overhaul.
Reform Details
Ministers unveiled sweeping changes on Tuesday, which they state are aimed at saving £5 billion annually and encouraging employment while protecting those who cannot work. The reforms feature significant modifications to benefit eligibility criteria.
Central to the government’s reforms is a tightening of eligibility criteria for the personal independence payment (PIP). The Resolution Foundation think tank estimates more than one million people could lose access to this payment under the new regulations.
Government Justification
Sir Keir argued the current system had “wreaked a terrible human cost,” with individuals wanting to return to work unable to access necessary support. When challenged by Diane Abbott, Sir Keir responded that it was a “moral issue” that one in eight young people were not in employment, education or training.
Key Policy Changes
- Reassessments to determine ongoing eligibility will increase, though those with severe conditions will be exempt
- Introduction of a “right to try” guarantee, allowing benefit recipients to attempt working without losing entitlements if unsuccessful
- Implementation of more stringent qualification criteria for disability payments
Financial Context
Spending on health and disability-related benefits has increased substantially since the Covid pandemic and has been forecast to rise from £65 billion annually to £100 billion by 2029.
Opposition and Concerns
The government’s reforms have encountered criticism from Labour backbenchers, unions, and charities who fear the changes could push more disabled people into poverty. Meanwhile, Conservatives argue the changes do not go far enough.
The reforms will face multiple votes in the House of Commons, requiring Labour MPs to decide whether they support the government’s proposals.