Rachel Reeves plans £5 billion welfare reforms

Rachel Reeves, the Chancellor, plans to push for welfare reforms aimed at reducing the rising benefits bill. She calls current spending on benefits “morally indefensible and economically damaging.” Labour is facing some internal resistance as rebels consider opposing the plan to cut £5 billion from sickness benefits, which could reach £100 billion by 2029. Reeves expressed confidence in Labour's ability to pass these reforms, thanks to their substantial majority in Parliament. She remarked, “We have got a big majority, I am confident we will get this through Parliament.” She also noted changes within the Labour Party since the leadership of John McDonnell, who no longer holds the Labour whip after previous rebellions. The reforms are set to tighten access to sickness and personal independence payments, directing funds to those in most need. Labour MP Diane Abbott has criticized these cuts, but with Labour's majority of 158 MPs, the chances of defeating the reforms seem slim. Reeves emphasized the importance of getting people back to work. She stated, “I’m absolutely determined to be the Chancellor that gives the support to people to get them back into work.” She highlighted troubling statistics, such as one in ten people on sickness benefits and one in eight young people out of education or work, calling the situation unacceptable. While some cabinet ministers have shared concerns about the cuts privately, none have spoken out publicly. There are reports that tensions are rising over leaked comments made during Cabinet meetings, causing frustration for Prime Minister Keir Starmer.