The UK Labour is bracing for significant internal opposition as it prepares to announce plans to curtail certain sickness and disability benefits, sparking concern among its backbenchers.
The proposed cuts are part of efforts to trim the burgeoning welfare budget and promote employment.
Work and Pensions Secretary Liz Kendall is slated to unveil these reforms on Tuesday, with the specifics of the cuts stirring considerable discord within the party. The government forecasts that welfare spending for the fiscal year 2024-25 will reach £319 billion.
Chancellor Rachel Reeves has been vocal about the necessity to rein in welfare expenditures to adhere to stringent fiscal regulations.
According to the Office for Budget Responsibility (OBR), which issues economic forecasts, Reeves may face challenges in maintaining her budgetary constraints due to lower-than-expected economic growth and higher borrowing since last October.
Among the measures reportedly being considered is a plan to save approximately £5 billion by tightening eligibility criteria for the Personal Independence Payment (PIP), which provides up to £9,000 annually to individuals with long-term health conditions.
These cutbacks are aimed at providing fiscal relief to the Chancellor, necessitated by recent geopolitical developments and economic downturns, rather than being reinvested into the welfare system.
Sam Coates, Deputy Political Editor at Sky News, discussed on the “Politics at Sam and Anne’s” podcast how this scenario has evolved rapidly over the past month, leading to a hurried and chaotic approach to the reforms.
