Chancellor Rachel Reeves plans to slash benefits bill with a "moral case" - Cabinet colleague supports move

Chancellor to make tough decisions

Chancellor Rachel Reeves is gearing up to cut welfare payments and Whitehall spending after her £10 billion headroom was depleted by poor economic conditions. Justice Secretary Shabana Mahmood has voiced her support, emphasizing the importance of ensuring that those who can work are given the opportunity to do so.

Concerns over wasteful spending

Proposals to tackle wasteful spending have been put forward to the official watchdog, but they are expected to be politically challenging. The recent forecast from the Office of Budget Responsibility highlighted a decrease in economic growth and an increase in borrowing costs following bond market instability earlier this year.

Focus on getting people back to work

Ministers are troubled by the high number of working-age individuals claiming health or disability benefits. Cabinet Office Minister Pat McFadden and Health Secretary Wes Streeting are exploring ways to reduce the civil service workforce and cut expenses. The government aims to deploy work coaches to assist sick and disabled individuals in finding employment under new welfare initiatives.

Long-term impact on the economy

Despite efforts to encourage workforce participation, there are still 2.8 million economically inactive individuals due to long-term sickness. The incapacity benefit expenditure is projected to reach £70 billion by 2029, prompting a reevaluation of the current welfare system to provide better support and opportunities for all individuals.