Politics

Starmer calls the cost of sickness benefits 'devastating.'

Published On Wed, 19 Mar 2025
Manoj Thakur
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Prime Minister Sir Keir Starmer has described the increasing cost of sickness and disability benefits as "devastating" for public finances, following his government's announcement of a major welfare system overhaul. On Tuesday, ministers unveiled reforms aimed at reducing spending by £5bn annually by 2030 while encouraging employment, though they assured support for those genuinely unable to work. Sir Keir criticized the existing system, arguing that it had inflicted a "terrible human cost" by failing to help those wanting to return to work.

However, the proposed changes have sparked backlash from Labour backbenchers, unions, and charities, who warn that tightening benefit eligibility could push more disabled individuals into poverty. The reforms will make it more difficult for people with milder conditions to qualify for disability payments, potentially affecting hundreds of thousands of claimants.

In an article for The Times, Sir Keir claimed the current welfare model "actively incentivizes" people to stay out of work, calling it an "affront to the values of our country." He pointed out that 2.8 million working-age people remain unemployed due to long-term illness, blaming the Conservatives’ past handling of welfare. Reacting to the announcement, the Conservative Party dismissed the reforms as "too little, too late," arguing that stricter measures were needed. Shadow Work and Pensions Secretary Helen Whately questioned why the government aimed to save only £5bn annually, given that health and disability benefit costs are projected to exceed £100bn by 2029/30.

A key aspect of the reforms is tightening the eligibility criteria for the Personal Independence Payment (PIP), a benefit designed to assist those with higher living costs due to disability or long-term illness. The Resolution Foundation estimates that over a million people could lose access to this support. The government is also introducing a "right to try" initiative, allowing individuals to attempt returning to work without immediately losing their benefits if it doesn’t work out. Reassessments for financial aid eligibility will become more frequent, though those with the most severe conditions will be exempt. Work and Pensions Secretary Liz Kendall defended the changes, stating they would ensure the UK’s social security system remains sustainable. Despite this, overall spending on health and disability benefits is still expected to rise, from £65bn annually to £100bn by 2029.

Critics argue the reforms could severely impact vulnerable communities. The Disability Benefits Consortium, representing over 100 charities, condemned the cuts as "immoral and devastating," warning they would push more disabled individuals into poverty. The SNP accused the government of initiating "a new era of austerity," while Labour MP Debbie Abrahams suggested more compassionate alternatives for cost-cutting.

Nonetheless, some Labour MPs support the reforms, agreeing with Kendall’s view that a "pro-work system" is morally justified. Public reactions have been mixed, with some welcoming aspects of the reforms while others express concern. Daisy, a 22-year-old from West London, fears losing PIP, stating, "If I don’t have it, I’ll become a burden on my family."

Disclaimer: This image is taken from BBC.