A Labour party in power might have been expected to defend the poorest and most vulnerable in society. No longer, it seems. Sir Keir Starmer’s government, inheriting a flatlining economy and self-imposed fiscal constraints, has chosen to balance the books on the backs of disabled people. Naturally, ministers aren’t calling it austerity. That would be so 2010s. Instead, they say these £6bn in cuts to disability benefits will help people back into employment. It’s a noble idea, except for one small problem: the Office for Budget Responsibility (OBR) says it won’t work.
The OBR’s analysis of the original £3bn welfare cut found that, while 400,000 disabled people would lose nearly £5,000 a year in benefits, only about 3% would actually enter employment. That’s not a welfare-to-work success story – it’s just a crude fiscal exercise dressed up as reform. But rather than rethink its approach, Labour doubled down, seeking another £3bn in savings. And where better to look than the never-implemented Tory proposals to cut benefits from mentally ill, sick and disabled people? Among the ideas being considered are replacing personal independence payment (Pip) with vouchers, freezing benefit rates and cutting mental health support for claimants – all in the name of “fairness to the taxpayer”.
