Disabled people ‘frightened’ as Reeves set to take axe to DWP benefits | Personal Finance | Finance
Disabled people are “frightened” of what might happen when Rachel Reeves makes what are expected to be cuts to the benefits system, according to members of her own party.
On Friday, the Chancellor said the Government must “get a grip” on it amidst Labour backbenchers’ apprehensions about the repercussions of anticipated budget cuts. Reeves has branded the benefits system, overseen by the Department for Work and Pensions (DWP), as “broken” and ineffective for all parties involved.
Labour backbenchers have voiced their concerns to officials, worried that the proposed changes to the welfare system could negatively impact those reliant on DWP benefits. Although Ms Reeves refrained from disclosing specifics during a trip to Scotland, she firmly stated that reform was needed.
The Chancellor said: “We will set out our plans for welfare reform, but it is absolutely clear that the current system is not working for anyone. It is not working for people who need support, it’s not working to get people into work so that more people can fulfil their potential, and it’s not working for the taxpayer when the bill for welfare is going up by billions of pounds in the next few years.
“So, we do need to get a grip. We need to spend more on national defence, but we need to reform our public services, and we need to reform our broken welfare system.”
In what they claim will be a bid to stimulate economic growth, ministers are aiming to decrease the number of working-age individuals on benefits and motivate them to seek employment. Recent statistics reveal that the count of universal credit (UC) claimants with health conditions or disabilities impeding their work capacity has surged by half a million within a year, reaching 2.5 million people.
The total number of claimants across Great Britain as of December 2024 marked an increase from two million in the preceding year. On Thursday, the Prime Minister dismissed suggestions of a return to austerity under these modifications, but acknowledged that benefit costs were “going through the roof” and poised to exceed the combined expenditure for the Home Office and prisons.
Labour leader Sir Keir Starmer argued that the current system is indefensible both morally and economically. Among those voicing opposition to the anticipated cuts is Labour MP Richard Burgon, who challenged Sir Keir during Prime Minister’s Questions in the House of Commons on Wednesday.
Addressing the Commons, he expressed that disabled individuals are “frightened” and urged Sir Keir to consider implementing a wealth tax as an alternative to “making the poor and vulnerable pay”.