Labour Government Plans Major Overhaul of Sickness Benefits System

Proposed reforms aim to reduce welfare costs and support long-term sick individuals in returning to work, sparking internal party tensions.

Labour ministers are preparing a welfare reform package to address the rising costs of long-term sickness benefits, which have surged from £36 billion pre-pandemic to £48 billion last year and are projected to reach £65 billion by 2030.
The reforms include abolishing the highest level of disability benefits, increasing reassessments for claimants, and imposing a new 'duty to engage' work preparation requirement on 2.4 million individuals currently exempt from work obligations.
An estimated £5 billion in savings will be achieved by tightening eligibility for personal independence payments, with £1 billion reinvested into intensive coaching programs to help the long-term sick reenter the workforce.
Labour backbenchers are divided, with a group of 36 MPs supporting the changes as a 'moral duty' to help disabled individuals find fulfilling jobs, while others express concerns about the impact on vulnerable populations.
Chancellor Rachel Reeves and Cabinet Office Minister Pat McFadden emphasize that the reforms aim to balance fairness to taxpayers with better support for those who are willing and able to work.