Benefits cuts ‘delayed to next week’ as Labour MPs revolt over ‘rerun of austerity’ – despite Keir Starmer warning the system is ‘indefensible’_Nhy
Labour‘s welfare overhaul has been delayed amid a Labour revolt despite Keir Starmer warning the system is ‘indefensible’.
Work and Pensions Secretary Liz Kendall had been widely expected to unveil plans as soon as today, with ministers struggling to slash £5billion from ‘spiralling’ benefits costs.
However, the announcement looks to have been pushed into next week, with nothing in the government’s schedule.
Intense discussions are going on behind the scenes as the PM tries to minimise unrest on his own benches at potential cuts.
Sir Keir was faced with grumbling at a meeting of the Parliamentary Labour Party last night, as he argued that Brits were being incentivised not to work.
There are fears dozens of MPs will oppose the reforms, including imposing tougher conditions on sickness handouts and prioritising support for those who have paid into the system.
Although the government’s huge majority means Sir Keir can force through measures a big rebellion would still be damaging.
Work and Pensions Secretary Liz Kendall had been widely expected to unveil plans as soon as today, with ministers struggling to slash £5billion from ‘spiralling’ benefits costs
Poole MP Neil Duncan-Jordan warned against a rerun of ‘austerity’ suggesting the government should ‘tax the super-rich’ instead.
He told BBC Newsnight: ‘Cuts to benefits don’t make jobs – they only make more poverty in our society and that’s why I’m very worried about some of the things I’m reading.’
He added: ‘It feels like a rerun of austerity and I’m worried about that.’
‘If we’re going to make poor people poorer, then there’ll be a number of MPs who won’t be able to sign up to that.’
Rachel Reeves wants to slash £5billion off the benefits bill to help balance the books at the Spring Statement later this month.
Ministers are also looking at longer term reforms designed to curb a sickness benefits bill forecast to hit £70 billion by the end of the decade.
Addressing Labour MPs behind closed doors last night, the PM said: ‘We’ve found ourselves in a worst of all worlds situation – with the wrong incentives – discouraging people from working, the taxpayer funding a spiralling bill, £70billion a year by 2030.’
He said one in eight young people were now not in education, employment or training, adding: ‘That’s unsustainable, it’s indefensible and it is unfair, people feel that in their bones.
‘It runs contrary to those deep British values that if you can work, you should. And if you want to work, the government should support you, not stop you.’
Sir Keir told his MPs that voters ‘want the status quo to be challenged’, as he vowed to be ‘ruthless and bold’ in driving through reforms.
His intervention came amid a growing Labour backlash over plans to balance the books by cutting benefits.
Some opponents are urging the Chancellor to change her ‘fiscal rules’ to allow more borrowing instead of cutting welfare.
Former frontbencher Rachel Maskell said the Chancellor should adopt ‘a carrot approach, not a stick approach’. She added: ‘We’ve got to make the right interventions and that doesn’t start with the stick.’
Asked about the mood among Labour MPs about the prospect of welfare cuts, she told the BBC: ‘All I have picked up is deep, deep concern and that’s clearly reflected from the stories we’re hearing from our constituents.’
Former Labour chancellor John McDonnell warned that welfare cuts would ’cause great hardship and suffering,’ adding: ‘This is not what any Labour government was elected to do.’
Ministers have been making the ‘moral’ case for reforming welfare, pointing to the near-million young people not in education, employment or training.
Keir Starmer was faced with grumbling at a meeting of the Parliamentary Labour Party last night, as he argued that Brits were being incentivised not to work
The benefits bill has been rising and is forecast to continue going up
The Chancellor is battling to avoid the need for more tax rises at the Spring Statement later this month, after stalling economic growth and rising debt cost wreaked havoc with her Budget plans.
She is also under massive pressure to ramp up defence spending amid rising alarm at the US withdrawing support from Europe and doing deals with Russia.
Health and disability benefits in sicknote Britain are expected to cost more than £100billion a year by the end of the decade – which would be more than the defence budget even after Keir Starmer’s recent boost.
The Office for Budget Responsibility (OBR) estimated in October that the cost of long-term sickness handouts will rise from £64.7billion in the 2023-24 financial year to £100.7billion in 2029-30.
That would be around 3 per cent of GDP, while Labour has committed to spending 2.5 per cent by 2027 and looking towards 3 per cent after the next election.
