A coalition of 42 Labour MPs is raising the alarm on their government’s proposed welfare cuts. These cuts will be specified in a “reconciliation” bill scheduled to be released later this month. No wonder MPs are worried about the impact these cuts will have on disabled people and their families. They are concerned in particular as the government aims for welfare savings of £5 billion per year by 2030.
The legislation will make major changes to core disability benefits such as the Personal Independence Payment (PIP) and Universal Credit (UC). It is hoped that the Bill will make its way through Parliament in June. A vote on the new law, dubbed the “Anti-Homelessness Bill,” is not far off, but fierce resistance has already materialized, largely from inside the British Labour Party. During a recent debate, nine Labour MPs voiced their intention to oppose the proposed changes, citing concerns about their potential effects on vulnerable populations.
The UK government spends £65 billion a year on health and disability-related benefits. Without change, the think tank predicts that welfare spending could rocket to £100 billion by 2029. In March, the government published a green paper setting out its general proposals for reforming the benefits system. The proposal’s stated purpose is to address what it describes as a “broken system” that produces a lack of meaningful employment or high costs to taxpayers.
In their letter to The Guardian, the 42 Labour MPs argued that the proposed reforms represent “the biggest attack on the welfare state since George Osborne ushered in the years of austerity.” They pointed out that over three million of the UK’s poorest and most disadvantaged individuals will be affected by these changes. Despite these modest improvements, the MPs went even further in denouncing the government’s strategy, claiming “cuts don’t create jobs, they only spread misery.”
“The barriers that disabled people face when trying to find and maintain employment must be addressed,” – 42 Labour MPs.
The government will tell you that its reforms are essential to creating a more efficient and sustainable welfare state. Responding to criticism, Minister for Disability Sir Stephen Timms stood by the proposals, arguing that the current welfare spending path is unsustainable. Timms underscored the importance of a holistic system that puts the traveling public and economic opportunity first.
“The current system produces poor employment outcomes, high economic inactivity, low living standards, high costs to the taxpayer. It needs to change,” – Sir Stephen Timms.
Timms highlighted the government’s “determination to help more people into work,” asserting that while the government has identified issues within the benefits system and job opportunities, their proposed solutions aim to create a proactive environment for all citizens.
Members of Parliament from the Labour Party were outspoken in their opposition in a recent letter. They continue to oppose the current proposals without a dramatic course correction. They indicated that without adjustments to address their concerns, “the green paper will be impossible to support.”
“We understand that there are concerns,” – Department for Work and Pensions (DWP) source.
As the proposed reforms advance further toward enactment, debates about their potential effects continue to play out. According to the government’s own estimates, about 3.2 million families would be worse off under these changes. On the more positive end, that means as many as 3.8 million families will be able to thrive by the year 2030.
With the vote looming and public sentiment growing against the cuts, the Labour MPs’ united front may influence the outcome of this crucial legislation. Now stakeholders from all sectors are weighing in with their comments on these exciting developments. Time will tell what Parliament will do with this hot apple, but the parliamentary evolution is certainly worth following.