Overhauling 'unsustainable' benefits 'makes moral and economic sense', ministers insist, amid brewing Labour revolt
17 March 2025, 13:58
There is a moral and economic case for overhauling the benefits system, the government has said, as it seeks to dispel a growing sense of unease from within its own party.
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Downing Street said expected cuts to the welfare state, set to be announced on Tuesday, are not purely because of the difficult economic state of the UK.
But reports that these cuts will include a freeze to the personal independence payment (PIP), the main disability benefit, have sparked fears of open revolt from Labour MPs.
Backbenchers including Diane Abbott have spoken out against the proposed changes, alongside Greater Manchester mayor Andy Burnham. Ms Abbott has called for a wealth tax to fund the benefits system.
Over seven million people in the UK claim sickness benefits. The number of claimants has gone up by a third in five years.
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A spokesman for the government said that ministers had "a duty to fix the system" to ensure that people weren't "written off" from work, while people who need help still receive it.
He told reporters: "I think the Prime Minister has been clear 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.
"Three million people are out of work for health reasons, and one in eight young people not currently in work, education or training.
"So we've got a duty to fix the system, to ensure that that safety net is always there for the most vulnerable and severely disabled, but also supports back into work, rather than leaving people written off."
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He added: "That is why tomorrow the Government will set out plans to overhaul the health and disability benefits system so it supports those who can work to do so, while protecting those who are most in need, and put the welfare system back on a more sustainable path."
Asked if the reforms were being carried out because of the UK's fiscal backdrop, the spokesman replied: "No, I think when you look at the fact that we have the highest level of working-age inactivity due to ill health in western Europe, we're the only major economy whose employment rate hasn't recovered since the pandemic, there is a duty to fix the broken system that is letting millions of people in this country down."
Health Secretary Wes Streeting tells Lewis Goodall there is a 'big need' for welfare reform
A slew of backbench MPs have made it clear in recent days that the PM’s attempts to get them to support cuts to benefits have not gone over well and they will vote against any such proposal.
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.
Speaking exclusively on Sunday with Lewis Goodall, Wes Streeting refused to be drawn on whether the Government planned to U-turn on the proposed freeze as part of this week's reforms.
"Labour is the party of work - the clue is in the name," he added, insisting the current benefits system was "unsustainable"."There is a big need for reform,” Streeting told Lewis, insisting he had not seen the proposals put forward by work and pensions secretary Liz Kendall.
"There’s no point in debating what we’re doing until people see the full package."
The health secretary hit out at speculation surrounding discontent within the Labour Party over the reforms, adding we should pause before "manufacturing rebellion".
It comes despite his Streeting's colleague, MP for Nottingham East Nadia Whittome, criticised the Government's proposed welfare cuts.
She added there was "extremely widespread unhappiness" within Labour about welfare changes.
"I'm not getting into speculation about an aspect of social care you've chosen to discuss in isolation," Streeting said in a heated exchange with Lewis.
“With respect, everyone’s been commenting on speculation,” he added, insisting: "We haven't discussed welfare reforms at cabinet".
It comes as Labour is set to unveil new plans that will see disabled people given the 'right to try' working without the immediate risk of losing their benefits.
Work and Pensions Secretary Liz Kendall is expected to announce the legislation as part of welfare reforms, as the government introduces a "right to try guarantee".
The move is said to be in response to surveys suggesting disabled people and those with long-term health conditions fear they will not get their benefits back if they try employment, but it does not work out.
"I spend all of my waking hours thinking about the future of health and social care, not every aspect of the healthcare system," Streeting said.
"We want to reduce poverty in this country... Our welfare system is not designed to support endlessly who are able to work. It's there to be a springboard," he insisted.
It comes amid speculation payments would not rise in line with inflation for a year.
Streeting told LBC that the UK was “an outlier in the wrong ways” when it comes to welfare benefits.
Speaking earlier on Sunday, the Health Secretary said: "I haven't seen the full plans, they haven't come to Cabinet yet.
"But 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 wider range of support, and that everyone's playing their part, including me, because with those levels of illness, for example, if I can help people back to health, in many cases I'll be helping them back to work and that's what we'll do."
Wes Streeting added that he thought doctors were "overdiagnosing" mental health conditions.
