Labour Plans Welfare Overhaul as Spring Statement Looms
Rachel Reeves and Liz Kendall emphasize reforms to support employment and meet fiscal targets, with potential cuts to sickness benefits under consideration.
- Rachel Reeves, the chancellor, is preparing to announce welfare reforms and spending cuts in the upcoming spring statement to adhere to Labour's fiscal rules.
- Liz Kendall, work and pensions secretary, advocates for getting people back into work as the key strategy to reduce the benefits bill sustainably.
- Reports suggest potential cuts to sickness benefits and increased means-testing, with claims for mental health-related benefits under scrutiny.
- The Department for Work and Pensions plans to redeploy 1,000 work coaches to provide more personalized support to long-term sick claimants.
- Labour ministers face internal and public challenges in justifying welfare cuts, aiming to balance fiscal responsibility with progressive policies.