Why The Government's Welfare Cuts Risk A Big Labour Rebellion
Work and pensions secretary Liz Kendall's planned welfare reform's have been described as having "no moral justification". (Alamy)
4 min read
The government is preparing for a major Labour backbench rebellion when its package of welfare reforms is put to a House of Commons vote. Here's why the proposed changes are controversial.
The reforms are set out in legislation that was published on Wednesday, with Liz Kendall, the Secretary of State for Work and Pensions, saying that the benefits system is at a "crossroads".
"This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity," the Cabinet minister said.
"This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot — putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.”
The government argues that the reforms will help people get into work and put an end to unsustainable government spending on benefits.
However, many Labour MPs believe that the welfare cuts go too far, and are urging the government to water down its plans.
What are the main points of contention?
The part of the plans that is proving most difficult for some Labour MPs to accept will make it harder for people with disabilities to claim the main disability benefit, Personal Independence Payments (PIP).
The proposed reforms will make it a requirement to score 4 or above in the daily living component on at least one activity to qualify for the daily living allowance entitlement.
It is estimated that this change will reduce, or completely remove, PIP from around 800,000 disabled people who rely on the benefit to cover extra living costs associated with their disability.
The government says the reforms are necessary because, since the coronavirus pandemic, PIP awards have more than doubled from 13,000 a month to 34,000 a month, a trend which it describes as not sustainable.
Why is there a backlash?
Concerned Labour MPs, plus a host of disability and anti-poverty charities, have warned that the reforms go too far and will harm vulnerable people.
A Department for Work and Pensions analysis published in March estimated that planned changes would see an additional 250,000 people – including 50,000 children – pushed into relative poverty.
Helen Barnard, director of policy at Trussell, the UK's leading food bank charity, said: "This bill will push nearly half a million more people into severe hardship".
The government is also under pressure to publish a full assessment of how the reforms will impact those affected by them.
“It is shocking that MPs are being asked to vote through cuts without a full assessment of their impact, and especially worrying as we know that already three in four people referred to the Trussell community are disabled or live with someone who is," Barnard added.
James Taylor, director of strategy at disability equality charity Scope, described the bill as "catastrophic for disabled people".
"Life costs more if you are disabled, whether or not you are working. The government needs to listen to disabled people and change course," he said.
Will the bill pass?
The government is braced for potentially dozens of Labour MPs to rebel when the plans are put to a House of Commons vote.
PoliticsHome on Wednesday reported that whips were urging MPs to abstain on the bill, rather than vote against, in a bid to avoid what would be a humiliating defeat given the size of the Labour majority.
Potential rebels were today invited to meetings with Claire Reynolds, Prime Minister Keir Starmer's Political Director, as well as ministers and officials in the DWP, as the government tries to dissuade MPs from voting against.
A number of Labour backbenchers have already voiced their opposition to the cuts following the bill's publication on Wednesday, including Bell Ribeiro-Addy, MP for Clapham and Brixton Hill, who posted on X: "The public will not forgive us if we remove support from those most in need of it".
Labour MP Andy McDonald told PoliticsHome the plans were a "huge attack on the incomes of disabled people".
"A small but welcome lift in the Universal Credit Standard Allowance is dwarfed by the billions more in massive income cuts for disabled people through the Universal Credit Health Element and Personal Independence Payment," said McDonald.
"MPs are being expected to vote these through whilst the green paper consultation continues, before the PIP assessment review is conducted, and without any evidence the separate employment support package — which is not in this bill — will work.
"This bill will be a yes or no on impoverishing disabled people. It's a no from me."
However, Starmer has indicated that he will make no further concessions, telling reporters at the weekend: "We need to do reform, and we will be getting on with that reform when the bill comes."
