PM faces backbench discontent as Labour prepares to overhaul benefits system

Sir Keir Starmer faces mounting backbench discontent as the Government prepares to announce sweeping changes to the welfare system this week.

Work and Pensions Secretary Liz Kendall is expected to set out plans for reform on Tuesday in an effort to get more people back to work and cut the cost of a benefits bill described by ministers as “unsustainable”.

But reports that this could include cuts to the personal independence payment (PIP), the main disability benefit, have sparked an outcry from Labour MPs.

Several backbenchers expressed frustration to the PA news agency at a lack of communication from ministers, with one describing “engagement sessions” held by Number 10 as “a tick box exercise” and another saying many of their colleagues had made it clear they would vote against such proposals.

Reports suggest the scale of the backlash has prompted a rethink of rumoured plans to freeze the level of PIP rather than increase it in line with inflation, delivering a real-terms cut to 3.6 million claimants.

But other backbenchers have expressed anger that proposals such as the PIP freeze had leaked out, suggesting to PA this had been done in “bad faith” before anything had been agreed by Ms Kendall and the Treasury.

Ministers insist that reform is necessary given the number of people in England and Wales claiming either sickness or disability benefit has soared from 2.8 million to about 4.0 million since 2019.

The benefits bill has risen with this increase, reaching £48 billion in 2023-24, and is forecast to continue rising to £67 billion in 2029-30 – a level that would exceed the current schools budget and the Government regards as unsustainable.

On Sunday, Health Secretary Wes Streeting said the full proposals are yet to come before Cabinet and urged the public not to listen to “speculation”.

He told the BBC: “What I do know is the Work and Pensions Secretary wants to support people who need help the most, and we’ve got to make sure that there is a wide range of support and that everyone’s playing their part.”

Meanwhile, Greater Manchester mayor Andy Burnham urged “caution” on benefit changes.

Writing in The Times newspaper, Mr Burnham said he agreed that the welfare system needed “a radical overhaul”, but said the Government should focus on helping people into work rather than simply cutting benefits.

He said: “I would share concerns about changing support and eligibility to benefits while leaving the top-down system broadly in place. It would trap too many people in poverty.

“And to be clear: there is no case in any scenario for cutting the support available to disabled people who are unable to work.”

Over the weekend, Government sources indicated that Ms Kendall’s reforms would include a “right to try guarantee” that would allow disabled people to enter employment without risk of losing their benefits if it did not work out.

But Conservative shadow work and pensions secretary Helen Whately said Labour was “divided” over welfare and “cannot deliver the decisive change we need”.

She said: “The Government’s dithering and delay is costing taxpayers millions every day and failing the people who rely on the welfare system.

“Under new leadership, the Conservatives are the only party united in the need to reduce spending on benefits – which is why we committed to save £12 billion-a-year from the welfare bill which Labour scrapped. Labour must come forward with a serious plan to deliver savings.”

Published: 17/03/2025 by Radio NewsHub