Labour benefits rift deepens as plans to slash welfare bill to be 'watered down' amid fears of backbench revolt
17 March 2025, 07:09 | Updated: 17 March 2025, 07:29
The Government is facing mounting backlash from the backbenches as Sir Keir Starmer prepares to launch sweeping changes to the benefits system.
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The Work and Pensions Secretary Liz Kendall is expected to set out cuts to the welfare state on Tuesday, as Labour looks to slash the country’s “unsustainable” benefits bill.
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.
Today, Ms Kendall looks set to walk back on the planned freeze in a bid to prevent open rebellion from the backbenchers, reports claim.
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.
