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Labour Faces Backlash Over £5 Billion Welfare Reform Plan

Critics warn the proposed cuts to disability benefits could harm vulnerable groups, while Labour defends the measures as fiscally necessary.

  • Labour's welfare reform plan aims to save £5 billion by tightening eligibility for Personal Independence Payments (PIP) and restructuring assessments.
  • The number of people claiming incapacity or disability benefits has surged since the pandemic, with PIP spending forecast to rise to £21.8 billion in 2024-25.
  • Advocacy groups and Labour MPs argue the cuts disproportionately affect disabled and elderly individuals, increasing poverty risks.
  • Labour defends the reforms, emphasizing fiscal sustainability and introducing a new premium for those unable to work due to severe health conditions.
  • A crackdown on welfare fraud is also included, granting the Department for Work and Pensions new powers to recover unpaid debts.
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