Ministers 'determined to fix broken benefits system' - as welfare cuts expected

13 March 2025, 16:07 | Updated: 13 March 2025, 17:19

The Work and Pensions Secretary has said the government is "determined to fix the broken benefits system" ahead of announcing "radical welfare reforms" next week.

Liz Kendall said the current system has locked "millions" out of work and called it "dysfunctional" as the system places a person in binary categories of either "fit for work" or "not fit for work".

The government has promised to either reform or replace the Work Capability Assessment - which determines if a person is fit for work or not - as they say it currently drives people who want to work "to a life on benefits".

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Ms Kendall said: "Millions of people have been locked out of work by a failing welfare system which abandons people - when we know there are at least 200,000 people who want to work, and are crying out for the right support and a fair chance.

"This government is determined to fix the broken benefits system we inherited so it genuinely supports people, unlocks work, boosts living standards while putting the welfare bill on a more sustainable footing."

Ministers have been priming MPs and the public for cuts to a ballooning welfare bill since the start of the year, with details expected next week ahead of an announcement at Chancellor Rachel Reeves's spring statement on 26 March.

The expected welfare cuts

Ms Reeves is expected to announce several billion pounds of spending cuts after losing her £9.9bn headroom since the October budget, with the welfare budget a key target for cuts.

The welfare cuts are expected to include £5bn in savings by making it harder to qualify for Personal Independent Payments (PIP), which help people with the additional costs of their disability.

PIP payments next year are also expected to be frozen and the basic rate for Universal Credit paid to those searching for work, or in work, is expected to be increased while the rate for those judged as unfit for work will be cut.

The department for work and pensions said new figures show 1.8 million people are now considered too sick to look for work due to a "broken work capability assessment" so are on Universal Credit but getting no support to find work.

It said the number has almost quadrupled since the start of the pandemic when 360,000 were considered too sick to look for work.

Read more:
What welfare cuts could be announced?
Labour MPs criticise benefit cuts

Labour MPs concerned about cuts

A growing number of Labour MPs are publicly raising concerns and, in an unusual move, all 404 Labour MPs were asked to attend "welfare roundtables" in Downing Street with the Number 10 policy unit on Wednesday and Thursday.

On Wednesday, Sir Keir Starmer faced down Labour MPs unhappy over the rumoured welfare cuts - especially for disabled people.

Richard Burgon pleaded with him to make the "moral" choice, telling the Commons disabled people are "frightened" as he urged the PM to introduce a wealth tax instead of "making the poor and vulnerable pay".

Sir Keir pledged to "protect those who need protecting", but later added there is no "bottomless pit".

He said the Tories "left a broken welfare system, which locks millions out of work, that is indefensible in my view, economically and morally".

Another Labour MP, John Slinger, urged the PM to reassure the Commons he will "provide compassion to those who can't work".

Labour MP Nadia Whittome told the BBC the government should impose a wealth tax instead of "placing that burden on disabled people who have already borne the brunt of 14 years of austerity".

She added that she "can't look her mum in the eye and support this".