Labour Government Fights Backlash Over Welfare Overhaul

By Luella Coley

In an unexpectedly drastic move, Chancellor Rachel Reeves’ Spring Statement detailed widespread reforms to the UK Welfare system. The proposal comes alongside a ‘Get Britain Working’ slogan and aims to encourage sick and disabled people, who have the ability to work, into employment, with the help of a £1 billion investment [1].

Despite the Labour party’s historical role in setting up the Welfare system, Prime Minister Sir Keir Starmer has openly criticised the “unsustainable, indefensible and unfair” welfare system his government inherited after the General Election last year [2]. Since the COVID-19 pandemic, the welfare system has been overwhelmed by increases in numbers of people seeking Personal Independence Payments (PIP), with the number of working-age people receiving PIP having more than doubled from 15,300 to 35,100 per month [1]. As such, Sir Keir Starmer’s Labour government have predicted these numbers to rise further over the next five years, eventually substantiating a cost of £34.1 billion annually, supporting a predicted 4.3 million working-age claimants [1]. The motivation has been made clear: the cost is too substantial to continue inaction, so the planned reforms to save £5 billion were set out in the House of Commons, by Liz Kendall – Secretary of State for Work and Pensions [3].

The proposed reforms are comprised of several components:

• Changed eligibility requirements for Personal Independence Payments (PIP) From November 2026, applicants will be required to meet more stringent criteria – in order to target payments towards recipients with higher needs.
• Modifications to Universal Credit allowance: Pledges have been made to raise the standard UC allowance above inflation by 2029/30 – an increase of £775 per year – which is claimable to those on low-income, unemployed, or unable to work.
• Removing the contentious work capability assessments: In 2028, work capability assessments will be entirely scrapped, as they are deemed responsible for locking claimants out of future work opportunities.

The proposal is a divisive one, and has come under a massive amount of criticism with protests from the public, and from MPs across party boundaries – but reactions to the contrary have also been voiced.

Many support the claimed benefit of the reforms – aiming to reduce welfare dependency and boost employment. Supporters note the massive extent of claimants of PIP on the grounds of mild conditions, and accept measures to encourage those into work, while investing in protecting disabled people who cannot work, and may never be able to. The assurance from supporters within the Government is that the reforms will make the welfare system work for those who need it, while eliminating the burdens the current system carries.

Overwhelmingly, though, objections have been raised. Dan Paskins, Executive Director of Policy, Advocacy and Campaigns for Save the Children UK – a charity fighting for better lives for children across the country – has openly criticised the Prime Minister, noting the insincerity of manifesto claims to drive down child poverty alongside the welfare changes proposed. In a post on X, the charity has stated concerns for the 870,000 children living in families that receive PIP [4].

The controversial, yet widely commended, MP Jeremy Corbyn spoke in the House of Commons last week under the sentiment of his consistent ‘Welfare, not warfare’ stance – “there are 1.2 million people in receipt of PIP who are about to lose it” – and asks Chancellor Rachel Reeves to reconsider the £5 billion being taken out of the welfare budget, considering the government’s immense defense budget [5].

Mr Corbyn was also among several MPs who signed a joint statement criticising what is set to be “the first Labour government in history under which child poverty increases”. The statement, signed by Green Party MPs, independents, and the suspended Labour MPs Apsana Begum and Zarah Sultana, urged the government to consider raising money in alternative ways, such as a wealth tax for those with assets over £10m, rather than moving to exacerbate child poverty [6].

While anxiety grows among those set to lose out, the Labour government is preparing for a rebellion from a number of MPs who will vote against the reforms. It is a rejection unlikely to block the proposal, however, enhancing concerns for the size of Labour’s majority in the House of Commons.

So, while these changes are argued by the responsible departments as being essential for economic sustainability and for boosting the workforce, the proposals have caused divisive debate within Parliament and the public. As the reforms progress through the legislative process, the impact on the 4.3m people directly affected and the overall economy will remain central to ongoing discussions, and will become clearer as the proposals manifest into policy.

References

[1] Department for Work and Pensions. “Biggest Shake up to Welfare System in a Generation to Get Britain Working.” GOV.UK,. 18 Mar 2025. https://www.gov.uk/government/news/biggest-shake-up-to-welfare-system-in-a-generation-to-get-britain-working.

[2] Maddox, D., “Starmer Denounces Benefits System as ‘Unsustainable’ in Move to Slash Welfare Bill.” The Independent. 11 Mar 2025. https://www.independent.co.uk/news/uk/politics/keir-starmer-benefits-pip-welfare-cuts-b2712854.html.

[3] Rogers, A., and Ridler, F., “What Are the Changes to PIP and Other Benefits? All the Planned Reforms to UK Welfare System.” Sky News. Sky, March 11, 2025. https://news.sky.com/story/sir-keir-starmer-says-welfare-bill-is-indefensible-so-what-cuts-could-be-announced-13326286.

[4] Save the Children UK. “@Savechildrenuk on X.” X.com. 18 Mar 2025. https://x.com/savechildrenuk/status/1901996001323302944.

[5] Corbyn, J., “Welfare, Not Warfare.” Facebook.com. Mar 2025. https://www.facebook.com/reel/1856070265167717.

[6] Brown, F., “‘Child Poverty Will Increase for First Time under Labour and It’s Paving Way for Reform’, Corbyn Warns Starmer.” Sky News. 27 Mar 2025. https://news.sky.com/story/child-poverty-will-increase-for-first-time-under-labour-and-its-paving-way-for-reform-corbyn-warns-starmer-13336683.

[7] Graham, S., “Concern in Stormont over Rachel Reeves’ spring statement as higher numbers of people rely on welfare support in NI than UK average”. The Irish Times. 26 Mar 2025. https://www.irishtimes.com/business/economy/2025/03/26/anger-in-northern-ireland-at-welfare-cuts-to-balance-budget-books/