Work & Pensions Secretary Liz Kendall has faced down a growing gaggle of backbench Labour rebels by unveiling plans to slash Britain’s ballooning benefits bill in a major crackdown on welfare claims.
The decision, which will leave many sick and disabled claimants worse off, is expected to cut welfare spending by around £5billion by the end of the decade.
However, Kendall also confirmed that £1billion will now be spent every year to encourage people back into work.
Addressing the House of Commons this afternoon, the Work & Pensions Secretary announced that the Government would be consulting to merge Jobseeker’s Allowance and the Employment and Support Allowance (ESA).
Liz Kendall delivering her speech in the House of Commons
HOUSE OF COMMONS
Kendall also confirmed the the “complex” and “time-consuming” work capability assessment, which is required to gain Universal Credit, will be scrapped in 2028.
She later revealed that the Government will be removing “financial incentives” behind claiming welfare benefits.
However, the allowance given to Universal Credit claimants will also be hiked by £775 by 2029/30.
Addressing MPs in the House of Commons, Kendall said: “The social security system that we inherited from the Conservatives is failing the very people that it is supposed to help and is holding our country back.
“The facts speak for themselves. One in 10 people of working age are now claiming a sickness or disability benefit. Almost one million young people are not in education, employment or training – one in eight of all our young people.
“Some 2.8 million are out of work due to long-term sickness, and the number of people claiming personal independence payments is set to double this decade from two million to 4.3 million, with the growth in claims rising faster among young people and those with mental health conditions.
“Claims are up to four times higher in parts of the midlands, Wales and the north where economic demand is weakest. These places were decimated in the eighties and nineties, written off for years by successive Tory Governments and never given the chances that they deserved.”
Sir Keir Starmer
PA
She added: “The status quo is unacceptable, but it is not inevitable. We were elected on a mandate for change to end the sticking-plaster approach and tackle the root causes of problems in this country, which have been ignored for too long.
“We believe in the value and potential of every single person: we all have something positive to contribute and can make a difference, whether that is in paid work, in our families or in our communities alongside our neighbours and friends.”
However, a number of Labour MPs have voiced their frustrations with Kendall’s announcement over the Government’s decision to cut incapacity benefits, tighten Personal Independent Payments and ban Britons under 22 from qualifying for Universal Credit.
Labour MP Debbie Abrahams, who serves as chair of the Commons Work and Pensions committee, warned against “balancing the books on the backs of sick and disabled people”.
Ex-Shadow Defence Secretary Clive Lewis added: “My constituents, my friends, my family are very angry about this and they do not think this is the kind of action a Labour Government takes.”
John McDonnell, who was suspended from the Labour Party after rebelling on a two-child benefit cap amendment last summer, also said that the plans would lead to “immense suffering”.
Liz Kendall outlined changes to the benefit system
PA
The former Shadow Chancellor later argued that the decision could potentially lead to the deaths of some of the most vulnerable people.
It is not yet known if Sir Keir Starmer will punish MPs for rebelling on the proposal, with No10 refusing to comment on the issue of party discipline.
“I wouldn’t get into that. That is not for me,” a No10 spokesman said when asked what the punishment could be for rebel MPs.
However, Kendall also refused to rule out further welfare cuts going forward.
“Let’s talk about the proposals we are actually making and not those which we aren’t,” the Leicester South MP claimed.
