Labour Faces Internal Divisions Over Proposed Welfare Cuts

Plans to reform disability benefits and freeze payments draw backlash from Labour MPs and party figures as Keir Starmer defends fiscal strategy.

The Labour government is planning to cut up to £6 billion from the welfare budget, including freezing Personal Independence Payments (PIP) for one year and tightening eligibility criteria for disability benefits.
Prime Minister Keir Starmer and Chancellor Rachel Reeves argue the reforms are necessary to address rising welfare costs, projected to hit £70 billion annually by 2030, and to incentivize work for those able to re-enter the workforce.
Labour MPs, including some rebels, have expressed strong opposition to freezing PIP, warning it would disproportionately harm vulnerable people and deepen poverty among disabled individuals.
Work and Pensions Secretary Liz Kendall highlighted that millions of people on sickness benefits receive no support to return to work, citing a nearly fourfold increase in the number of claimants since the pandemic.
Former shadow chancellor Ed Balls and other prominent figures criticized the proposals, with Balls calling the cuts to disability benefits incompatible with Labour's values and unlikely to succeed.