Labour Sparks Outrage with Plans for Massive Welfare Cuts – £5 Billion at Risk

Labour’s new Government is gearing up to announce sweeping welfare cuts, with Work and Pensions Secretary Liz Kendall set to unveil the plans on Tuesday. The move is already stirring up unease among backbench MPs, as fears grow over how deep the cuts could go.

The Government insists the welfare system needs a serious overhaul, with Downing Street arguing there’s both a “moral and economic case” for reform. They say the changes will put the system “back on a more sustainable path” and help get more people into work. But with reports suggesting the reforms could see £5 billion slashed from benefits, not everyone’s convinced, reported the Independent.

A major flashpoint is the potential impact on Personal Independence Payment (PIP), the key disability benefit. York Central MP Rachael Maskell has already voiced her concerns, saying she’d be worried if the Government tweaks the eligibility rules. Meanwhile, Greater Manchester Mayor Andy Burnham warned that simply tightening the criteria without fixing the broader system would end up “trapping too many people in poverty.”

Rumors had been swirling that ministers were planning to freeze PIP rather than increase it with inflation—effectively cutting support for 3.6 million claimants. But the backlash from within Labour appears to have forced a rethink.

On Monday, Kendall tried to calm nerves, promising MPs that the reforms would maintain “trust and fairness” while ensuring support remains available “for people who need it now, and for years to come.”

The Government argues that reform is urgent, pointing to the sharp rise in disability and sickness benefit claims. Since 2019, the number of claimants in England and Wales has jumped from 2.8 million to around 4 million, sending the benefits bill soaring. Last year alone, it hit £48 billion and is expected to climb to a staggering £67 billion by 2029-30—more than the entire school budget.

However, Number 10 insists these changes aren’t just about balancing the books. With Chancellor Rachel Reeves preparing for her big spring statement on March 26, pressure is mounting to show they’re tackling the country’s economic struggles while still being fair to those in need.

The Prime Minister’s spokesperson doubled down on the Government’s stance, saying: “There is both a moral and an economic case for fixing our broken social security system that’s holding our people back, and our country back.”

On Tuesday, all eyes will be on Kendall’s announcement to see exactly how far these reforms go—and how Labour MPs and the public react to what could be one of the most controversial welfare shake-ups in years.