The UK government, under the leadership of Prime Minister Keir Starmer, is weighing significant welfare cuts as it addresses rising expenditures due to the pandemic.
UK Government Plans to Cut Welfare Spending Amid Economic Strain
UK Government Plans to Cut Welfare Spending Amid Economic Strain
Efforts to balance welfare costs with employment growth face criticism from within Labour Party.
Britain's center-left government revealed on Tuesday its plan to reduce escalating welfare costs, amid an urgent need to balance public spending, encourage employment, and support vulnerable communities. This announcement comes after intense discussions within the Labour Party about the future of the welfare system, which has seen costs soar since the Covid-19 pandemic.
Liz Kendall, the Secretary of State for Work and Pensions, presented the plan in Parliament, emphasizing the necessity for “decisive action” to incentivize work for those able and provide security for those unable to work. The government aims to save £5 billion (approximately $6.5 billion) by 2030 through these reforms.
The proposed welfare cuts are particularly controversial for a party that considers itself a defender of the welfare state established in the UK after World War II. With Britain’s population hovering around 68 million, current statistics reveal over 9.3 million economically active individuals remain unemployed, notably increasing by 713,000 since 2020. Alarmingly, among this group, around 2.8 million are receiving long-term sickness welfare benefits, a number projected to potentially exceed four million without intervention.
The government spent about £65 billion on sickness payments in the previous year, prompting the Treasury to seek cuts in public spending as military expenditure demands rise and public services, including healthcare, suffer from underfunding in a sluggish economic environment.
Liz Kendall, the Secretary of State for Work and Pensions, presented the plan in Parliament, emphasizing the necessity for “decisive action” to incentivize work for those able and provide security for those unable to work. The government aims to save £5 billion (approximately $6.5 billion) by 2030 through these reforms.
The proposed welfare cuts are particularly controversial for a party that considers itself a defender of the welfare state established in the UK after World War II. With Britain’s population hovering around 68 million, current statistics reveal over 9.3 million economically active individuals remain unemployed, notably increasing by 713,000 since 2020. Alarmingly, among this group, around 2.8 million are receiving long-term sickness welfare benefits, a number projected to potentially exceed four million without intervention.
The government spent about £65 billion on sickness payments in the previous year, prompting the Treasury to seek cuts in public spending as military expenditure demands rise and public services, including healthcare, suffer from underfunding in a sluggish economic environment.
