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Anxiety over welfare cuts rises among Labour MPs

  • Chancellor Rachel Reeves announced welfare reforms in her spring statement, including changes to PIP eligibility and universal credit sickness benefits, aiming to save £5 billion a year by 2029.
  • The government's justification is to address the increasing number of people, approximately 1,000 per day, moving onto long-term sickness and disability benefits, potentially reaching 4.3 million by the end of the decade if no action is taken.
  • Universal credit health benefits for new claimants will be halved in 2026, and the tightening of PIP eligibility is facing criticism from disability charities, unions, and within the Labour Party itself.
  • Rachel Reeves has stated that her fiscal rules are "non-negotiable", while Labour MP Clive Lewis criticized the cuts as 'punching down on the poorest and most vulnerable,' and Debbie Abrahams, chair of the work and pensions select committee, warned that "all the evidence points to cuts in welfare leading to severe poverty and worsened health conditions."
  • The government's own impact assessment estimates that these changes could push around 250,000 families, including 50,000 children, into poverty, leading to unease among Labour MPs and potential rebellion, though government whips are likely overestimating the number of Labour rebels.
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Hyphen broke the news in on Wednesday, March 26, 2025.
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