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Labour MPs Decry Government’s Welfare Cuts as Devastating
Labour Members of Parliament (MPs) have condemned the recent welfare cuts endorsed by the chancellor, labeling them as “devastating” and “unacceptable.” This criticism follows the government’s own analysis indicating that over 3 million households will face financial hardship, with an estimated 250,000 individuals being driven into poverty as a result of the reductions.
The backlash from backbench MPs was ignited by the publication of an impact assessment, which details the cuts announced during Rachel Reeves’s spring statement this week.
The assessment reveals that approximately 3.2 million households will experience an average annual loss of £1,720. The heaviest burden is expected to fall on those qualifying for the Personal Independence Payment (PIP), with around 800,000 individuals projected to lose an average of £4,500 annually.
Debbie Abrahams, chair of the work and pensions select committee for Labour, expressed her concerns in the Commons, stating, “All the evidence indicates that the cuts to health and disability benefits will exacerbate poverty, including severe poverty, and lead to deteriorating health conditions. How is making people sicker and poorer supposed to aid economic growth and employment?”
Neil Duncan-Jordan, MP for Poole, echoed these sentiments by stating, “We are discussing people’s lives here—my constituents are genuinely frightened. This policy will intensify the conditions leading to poverty, placing additional strain on already stretched services. We know that cuts will not stimulate growth or create jobs; they will only deepen poverty.”
Many backbenchers are contemplating opposition to the modifications to PIP in an upcoming Commons vote anticipated for May, with speculation that some frontbenchers may resign in protest alongside the dissenting MPs.
Rachael Maskell, the Labour MP for York Central, emphasized the severe repercussions of these cuts, asserting, “The damaging effects of losing critical income will primarily impact disabled individuals. I cannot and will not support measures that jeopardize people’s livelihoods or drive them further into poverty.”
According to the government’s impact assessment, over 370,000 current PIP recipients will lose their benefits, alongside an additional 430,000 who will not qualify in the future. Furthermore, around 150,000 individuals are expected to lose access to carer’s allowance, affecting one in ten unpaid carers. Carers UK described this as the “first significant cuts to carer’s allowance in decades,” raising concerns about the heightened anxiety among caregivers struggling to meet their financial obligations.
The combined financial impact could be significant, with the average loss from PIP at £4,500 a year and an additional loss of £4,250 from carer’s allowance, potentially leading some households to suffer annual losses exceeding £8,740. It is worth noting that over 1 million unpaid carers are already living in poverty.
In addition, approximately 2.25 million individuals receiving universal credit will be affected by a freeze on the health element of the payment, each expected to lose an average of £500 a year. Furthermore, 730,000 future claimants are set to lose an average of £3,000 annually due to these changes.
The Office for Budget Responsibility (OBR) characterized the £4.8 billion cuts package as “the largest welfare savings initiative since the July 2015 budget” introduced by former Chancellor George Osborne, which involved a four-year freeze on most working-age benefits and reductions to tax credits and universal credit.
During a recent briefing for backbenchers led by Treasury Chief Secretary Darren Jones, several Labour MPs openly voiced their dissatisfaction. Of the roughly two dozen Labour representatives present, over seven voiced criticism of the cuts, with four indicating intentions to oppose them during the upcoming vote.
Jones further incited anger with comments made during a live appearance on the BBC, where he used an analogy involving his children’s pocket money to explain the benefit cuts. He stated, “If I said to my kids: ‘I’m going to cut your pocket money by £10 per week, but you have to go and get a Saturday job,’ the assessment in this context would show a loss of £10 regardless of any money earned from the job.”
Steve Darling, spokesperson for the Liberal Democrats on work and pensions, called Jones’s comments “incredibly insulting” and demanded an apology.
Other Labour MPs voiced their grievances with the OBR’s forecasts, which necessitated deeper cuts than previously anticipated just a week before the announcement. One backbencher remarked, “The parliamentary Labour party must raise its voice regarding the OBR and the fiscal rules; this situation is propelling our constituents into poverty and undermining trust in a Labour administration’s ability to manage finances effectively.”
Additional reporting by Jessica Elgot and Eleni Courea
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