Labour's £5 Billion Welfare Squeeze Won't Stop Rise in Disability Benefits, Minister Admits

Reforms Aim to Cut Costs

Labour's £5 billion welfare squeeze is not expected to curb the increasing costs of disability benefits, as acknowledged by a minister. Sir Stephen Timms admitted that expenses are likely to continue rising despite the planned measures.

Potential Impact on Benefits Recipients

The proposed reforms target reducing spending by tightening the eligibility criteria for Personal Independence Payment (PIP) and reducing the health top-up for new Universal Credit claimants. It is estimated that around a million individuals in England and Wales may face cuts to their benefits.

Challenges Ahead

Sir Stephen Timms, the Social Security Minister, cautioned that the welfare bill, primarily driven by PIP claims, is expected to reach £100 billion within the next five years. While the changes aim to slow down the rate of increase, the minister believes they are crucial for the long-term sustainability of the system.

Debates and Criticisms

The move by PM Sir Keir Starmer has sparked criticism from left-wing Labour MPs, charities, and disability advocates, who argue that it will negatively impact thousands of individuals. Labour stalwart Diane Abbott criticized the reforms during PMQs, stating that they lack a moral foundation.

Concern for Young People and Future Projections

PM Sir Keir Starmer defended the reforms, highlighting the moral imperative of addressing the issue of youth unemployment and inactivity. Recent data indicates a concerning trend, with projections suggesting that by 2030, one in 12 working-age Brits could be out of work due to sickness.

The Department for Work and Pensions anticipates a significant rise in economically inactive individuals, with an estimated 3.62 million people falling into this category by 2030, marking a 61% increase since before the onset of the Covid-19 pandemic. Additionally, the number of young people unable to work due to mental health issues has doubled since 2015, affecting nearly a million individuals.