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Labour Government Faces Backlash Over £5 Billion Welfare Reform Plan

Proposed changes to disability and health benefits are projected to impact millions, with critics warning of increased poverty and harm to vulnerable groups.

  • The UK Labour government has announced a £5 billion welfare reform package, focusing on tightening eligibility for Personal Independence Payment (PIP) and delaying access to certain benefits for young people.
  • The reforms are expected to disqualify around 1 million current PIP recipients and reduce income for some by £4,200 to £6,300 annually.
  • Critics, including disability charities and Labour backbenchers, argue the changes will push disabled individuals into poverty and increase pressure on other public services like healthcare.
  • Prime Minister Keir Starmer and Work and Pensions Secretary Liz Kendall defend the reforms as necessary to address unsustainable public spending on disability benefits, projected to reach £70 billion annually by 2030.
  • An impact assessment of the reforms is pending release next week alongside the spring statement, fueling concerns over the lack of transparency and potential unintended consequences.
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