Labour MPs urge Rachel Reeves to rethink cuts to health and disability benefits

Rachel Reeves has faced pleas from Labour MPs to reverse cuts to health and disability benefits, amid warnings they will lead to increased poverty.

The Chancellor claimed the Government “inherited a broken” welfare system as “more than 1,000 people” qualify for personal independence payments every day – and one in eight young people are not in employment, education or training.

Ms Reeves used the spring statement to confirm further pressure on the welfare budget, which follows cuts to the disability and incapacity bill set out earlier this month.

The Government expects the measures to save £4.8 billion rather than the more than £5 billion in 2029/30 hoped for by ministers.

“Severe poverty”

Labour MP Debbie Abrahams, who chairs the Work and Pensions Committee, told the Commons: “I recognise the difficulties that (Ms Reeves) is facing in terms of fiscal challenges and so on that she inherited and I also support the reforms (Work and Pensions Secretary Liz Kendall) has set out.

“But all the evidence is pointing to the fact that the cuts to health and disability benefits will lead to increased poverty, including severe poverty, and worsened health conditions as well.

“How will making people sicker and poorer help in terms of driving our economy up and people into jobs?”

Ms Reeves replied: “In the green paper we’re consulting on a premium payment for the most severely sick and disabled because as a Government we believe that those people need support should get it.

“But like (Ms Abrahams) I recognise that there are many people who are sick and disabled, there are many young people who could be working but were written off by the previous government and that’s why we’re putting record investment in helping getting those people back to work, with guaranteed, personalised and targeted support.

“You’re half as likely to be in poverty if you’re working, if you move from welfare into work and we’re determined to lift people out of poverty by ensuring there are good jobs paying decent wages with a security that’s guaranteed through the Employment Rights Bill.”

Responsibility

Labour MP Rachael Maskell (York Central) recognised the importance of fiscal responsibility before adding: “However, as a Labour Party we’ve got an additional responsibility around having social responsibility.

“So can we look at the DWP (Department for Work and Pensions) changes again? Of course protecting the most vulnerable, but it’s those people just above that band which are set to lose and we’re really worried about those.”

Ms Reeves, in her reply, said: “I share the deep concern of all of us on this side of the House, I think everyone in the chamber shares the concern about the most sick and disabled who need support, which is why in the green paper we’re consulting on an additional premium payment for the most severely disabled.”