UK Government Prepares Major Welfare Overhaul Amid Rising Costs

Labour ministers signal imminent welfare cuts as costs surge, but face internal party resistance and scrutiny over fairness.

The UK government plans significant welfare reforms, targeting a £5 billion reduction in spending to address rising costs of health and disability benefits.
The welfare bill for working-age health benefits has grown from £36 billion pre-pandemic to £48 billion last year, and is projected to reach £65 billion within five years.
Labour ministers argue the current system is unsustainable, with 2.8 million people claiming long-term sickness benefits—a figure expected to rise to four million by 2030.
Critics highlight that the increase in claims is partly driven by mental health conditions, with approvals for disability benefits nearly doubling since 2010.
Labour backbenchers express concern over the potential impact on vulnerable populations, drawing parallels to controversial Conservative welfare policies of the past.