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Labour Faces Party Tensions Over £5 Billion Welfare Cuts

Labour's welfare reform package, aimed at reducing costs and encouraging employment, is drawing criticism from disability advocates and MPs, with internal dissent threatening party unity.

  • The Labour government has proposed a £5 billion welfare reform package, primarily targeting health and disability benefits, to address rising welfare costs projected to reach £70 billion annually by 2030.
  • Critics warn that up to 1.2 million people could lose Personal Independence Payments (PIP), with some households facing income losses of up to £10,000 per year.
  • The reforms include delaying access to the health element of Universal Credit for individuals under 22, which has been criticized as disproportionately affecting vulnerable young people.
  • Labour MPs have expressed significant dissent, with some threatening rebellion or resignation over the cuts, particularly regarding tightened PIP eligibility criteria.
  • An impact assessment, expected next week, may influence the ongoing debate as concerns grow over potential unintended consequences, including increased NHS pressure and legal challenges.
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