Lords Back Urgent Disability Benefit Reforms Amid Starmer's Warning of 'Ruthless' Cuts

[Social Media]

 

An inquiry by members of the House of Lords has urged "urgent" reforms to the UK’s disability benefits system, calling on the government to move forward with planned changes. The House of Lords Economic Affairs Committee, in a letter to Department for Work and Pensions (DWP) Secretary Liz Kendall, highlighted the pressing need to address rising welfare spending, which it said remains a significant challenge for the government.

 

The report notes that £65 billion is spent annually on health-related benefits, surpassing the government’s defence budget of £54 billion. Committee chair Lord Bridges of Headley emphasized that the current system incentivizes claims for health-related benefits while offering limited encouragement for individuals to transition into employment. He urged immediate action, saying there should be “no delay” in reforms, particularly regarding how claimants are assessed.

 

The intervention comes on the heels of Prime Minister Sir Keir Starmer’s comments during a recent visit to Ukraine, where he warned that he would be “ruthless” in cutting benefits if necessary to balance the budget. A green paper outlining planned reforms to health-related benefits is expected this spring, with the government signaling that changes to the controversial Work Capability Assessment (WCA) will be central.

 

Since its introduction in 2008, the WCA has faced widespread criticism for inaccuracies and mistrust. Reports in both 2018 and 2023 found a significant number of incorrect assessment decisions, fueling public dissatisfaction. Lord Bridges criticized the current system as “financially unsustainable” and a waste of human potential, calling on the government to prioritize reforms. He added, “There should be more support to help those who are able to find and accept work—and to ensure that those who cannot work for a period are not abandoned to a life on benefits.”

 

The number of people claiming health-related benefits has surged since the COVID-19 pandemic, with 3.7 million working-age individuals now receiving such support—1.2 million more than in February 2020. The committee pointed to increased mental health issues among young people and growing NHS waiting lists as key factors driving this rise. However, it stated there is “no convincing evidence” that government plans to improve NHS waiting times will significantly reduce these figures. The report also estimates that enabling 400,000 individuals currently out of work due to ill health to re-enter the workforce could save the government £10 billion annually.

 

James Taylor, executive director of strategy at the disability equality charity Scope, called for immediate reforms but warned against focusing solely on cost-cutting. “Our broken benefits system urgently needs fixing, and we know there are a million disabled people who want to work but are denied the opportunity,” Taylor said. He added, “Cutting benefits spend means taking away the support disabled people need to live, which will push many more disabled people into poverty.”

 

Labour has pledged to save £1.3 billion annually through reforms to the WCA, promising to match previous government spending commitments while re-consulting on changes. This follows a High Court ruling that deemed the Conservative government’s consultation on planned reforms “unfair” and “misleading.”

 

A government spokesperson reaffirmed their commitment to boosting employment rates, stating, “We are determined to get Britain working again and have set out our first steps towards delivering an 80% employment rate by joining up local work, health, and skills plans.”

 

Based on a report by The Independent 2025-01-22

 

 

[The Cyclist]

4 hours ago, Social Media said:

A government spokesperson reaffirmed their commitment to boosting employment rates, stating, “We are determined to get Britain working again and have set out our first steps towards delivering an 80% employment rate by joining up local work, health, and skills plans.”

 

Better start making magic wands.

 

Unemployment ticked up yesterday to 4.4%, and will continue to rise if Reeves does not reverse her budget raise of Employer NI contributions and reducing the NI threshold by nearly 50%.

[JonnyF]

5 hours ago, Social Media said:

The intervention comes on the heels of Prime Minister Sir Keir Starmer’s comments during a recent visit to Ukraine, where he warned that he would be “ruthless” in cutting benefits if necessary to balance the budget.

 

Clearly he has to work around Rachel from accounts "budget for recession".

 

But ruthlessly cutting disability benefit seems a bit nasty even by Starmer's standards.