Welfare reform: are more cuts the answer?

Few Labour MPs entered politics to cut social security, but with a "cash-strapped" government "promising sweeping reform", they now face a "major test of loyalty" to Keir Starmer, said Politico.

Just eight months after winning power on a pledge to break with 14 years of austerity, Starmer is planning a "fresh overhaul" of welfare, including potential cuts to disability benefits.

Ministers are yet to publish their plans, but haven't denied reports of proposals to tighten eligibility for Personal Independence Payment (PIP) or reductions in incapacity benefits under Universal Credit.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

Cuts 'only option' government has left

Most are agreed that the benefit cuts will be "big and consequential", said the BBC's Henry Zeffman. The government will argue that it is a "noble and necessary mission" to "cajole" more people into work, but "plenty" of MPs and campaigners "would argue that cutting benefits does not necessarily boost employment".

For the government, there is also a more urgent motive behind the reforms. Chancellor Rachel Reeves "needs to find billions" to meet her own borrowing rules after rising debt costs "wiped out" her financial headroom, said Zeffman. And the truth is that, with "negligible economic growth and no public appetite for more tax rises", cuts are "the only option Starmer and his Chancellor have left", said Katy Balls in The Spectator.

This early in Labour's tenure, backbenchers may still feel "bound" to support the government over the rumoured cuts, rather than "speak their minds in public", said Isabel Hardman in The Observer. But it doesn't mean they're not angry at having to explain to their constituents why the Labour Party might remove their entitlement to disability benefits.

'Illusory hunt for savings'

For a government desperate for money, "there can be few more inviting targets than the British welfare system", said Stephen Bush in the Financial Times. Yet the current mess "is itself the product of a desire to prioritise headline savings over designing a well-thought-through benefit system".

Labour has a "real opportunity" to build a better, cheaper welfare system. But not if it gets "boxed into the same hunt for illusory savings that has characterised the recent past". The previous approach didn't work. "Let's not demand more of the same."