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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.
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