Author: Simon English
Published on: 20/03/2025 | 00:00:00
AI Summary:
United Kingdom Prime Minister Keir Starmer has unveiled a major shake-up of the country’s welfare system. Starmer is facing angry opposition from charities, think tanks and even senior members of his own Labour Party over the moves announced this week. The prime minister and Chancellor Rachel Reeves argued they are being forced to make cuts to spending after inheriting a dire financial position from the Conservative government. Reeves is expected to introduce more cuts to government spending next week. The majority of the 5 billion pounds in savings will come from tightening the rules on applying for PIP. PIP is currently paid to 3.6 million people who score from zero to 12 on their ability to perform tasks. Health and Disability Green Paper will boost Universal Credit support for up to four million families without any health conditions or disabilities by about 3 pounds ($3.90) a week. The fact that 2.8 million working-age people are not working due to long-term sickness is a “damning indictment” of his predecessors. Resolution Foundation, a centre-left think tank, said if the government plans to save 5 billion pounds from restricting PIP by making it harder to qualify for the “daily living” component Labour wants to be a party for people who work and to encourage people to do so. Work and Pensions Minister Stephen Timms said reforms will also lead to savings that will protect welfare in the long term. Conservative Party said cuts are merely “rushed” attempts to make government finances look better in the short term and welfare system needs a wider overhaul. Advocacy groups voiced anger at the cuts. Labour hopes that by making such controversial moves early in term, it will have enough time to boost the economy and impress voters. The next election is not due until August 2029 at the latest, and it makes sense for the chancellor to try and get the bad news out of the way now. Reeves says more and deeper changes will be required to turn around government finances. "I don’t think anyone believes that the current system is working," she says.
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