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Disability Benefits Cuts Criticized by Ed Balls and George Osborne
The former shadow chancellor Ed Balls has openly rebuked proposed cuts to disability benefits, asserting during his podcast that such measures are unlikely to be effective.
George Osborne, known for his role in implementing welfare reductions during the coalition government, echoed Balls’ concerns on the same podcast. He revealed that he had previously resisted freezing Personal Independence Payments (PIP) – a move currently under consideration – believing it would be excessively harsh.
Balls, a notable presence in the Labour party and married to Home Secretary Yvette Cooper, indicated that the Labour Party may find welfare reforms challenging in light of other simultaneous cuts. He remarked, “It’s one thing to say the economy is not doing well and we’ve got a fiscal challenge, but the context we’re now in is that we are having to increase defence spending, and, two weeks ago, it was announced we’re going to cut international aid.”
He added, “But cutting the benefits of the most vulnerable in our society who can’t work, to pay for that, is not going to work. And it’s not a Labour thing to do … It’s not what they’re for.”
Concerns have already emerged among Labour MPs regarding the extent of proposed changes, which some believe exceed the austerity measures previously implemented by Osborne. In a statement to the media, Keir Starmer reiterated that his policies do not signify a “return to austerity.”
Osborne, who presided over significant welfare reductions as Chancellor, explained that he faced considerable opposition when he contemplated freezing PIP. “I didn’t freeze PIP. I thought it would not be regarded as very fair. What I did try to do was reform PIP,” he clarified on the podcast.
Osborne noted that his last budget aimed to adjust the generosity of PIP payments, particularly concerning those able to undertake some work, which ultimately led to the resignation of then-Work and Pensions Secretary Iain Duncan Smith. “I had to back down on it. General freezes have been easier to sell than specific reforms that actually reduce cash payments to certain segments of the disability-claiming community,” he elaborated.
Reports suggest that current plans could result in nearly £6 billion in cuts, primarily from PIP, with stricter eligibility criteria imposed and certain payments likely to be frozen.
During a recent visit to Hull, Starmer remarked on the insufficiency of the existing system, stating, “We’ve set up a system that basically says: ‘If you try the journey from where you are into work and anything goes wrong, you’ll probably end up in a worse position than when you started.’”
Acknowledging the apparent fear many individuals have regarding employment transitions, he highlighted this as a factor contributing to a workforce too hesitant to seek jobs.
When asked post-speech if he believed these changes would equate to a return to austerity, Starmer asserted, “We’re the party of work. We’re also the party of equality and fairness, but we’re not returning to austerity. That’s what I said before the election. That’s what I say now.”
Recent figures from the Department for Work and Pensions indicated a troubling increase in individuals receiving the highest rate of universal credit without job-seeking support, which has risen nearly fourfold since the pandemic began. Among those under 25, this increase is particularly stark, with 160,000 young individuals affected, a rise of 249% since the onset of the pandemic.
The department acknowledged that while a rise in those classified as having “limited capability for work-related activity” was anticipated during the transition to universal credit, the current surge has surpassed expectations.
Source
www.theguardian.com