Starmer says welfare system indefensible on ‘moral’ terms amid backlash
The Prime Minister denied Britain would be ‘returning to austerity’ under the changes but said the cost of benefits was ‘going through the roof.’
Sir Keir Starmer has defended planned welfare reforms amid concerns among Labour MPs about expected cuts to the budget, insisting the existing system could not be justified on “moral” or “economic” terms.
The Prime Minister denied Britain would be “returning to austerity” under the changes but said the cost of benefits was “going through the roof” and on track to surpass the bill for the Home Office and prisons combined.
It comes as Downing Street seeks to reassure backbenchers uneasy with how cuts to the welfare bill would affect the most vulnerable in society.
The number of claimants on universal credit (UC) with a health condition or disability restricting their ability to work rose by half a million in a year to 2.5 million people, the latest figures show.
The latest figure for claimants across Great Britain as of December 2024 was up from two million the previous year.
Speaking on a visit to Hull on Thursday, Sir Keir said: “The welfare system as it’s set up, it can’t be defended on economic terms or moral terms.
“Economically, the cost is going through the roof. So if we don’t do anything, the cost of welfare is going to go to £70 billion per year. That’s a third of the cost of the NHS.
“That’s more than the Home Office and our prisons combined. So we’re making choices here.”
He said that “most people say to me” that they want more police officers on the beat and a criminal justice system working effectively.
“We’ve set up a system that basically says, ‘if you try the journey from where you are into work and anything goes wrong, you’ll probably end up in a worse position when you started.’
“And so understandably, many people say, ‘well, I’m a bit scared about making that journey.’ Therefore we’re baking in too many people not being able to get into work.”
Asked during a Q&A with journalists after his speech whether he accepted the changes would amount to return to austerity, he said: “We’re the party of work. We’re also the party of equality and fairness, but we’re not returning to austerity.
“That’s what I said before the election. That’s what I say now.”
The Prime Minister said it was especially “tragic” that so many young people are “already stuck in a system that won’t let them get to where they need to be” but that the problems were present across the board.
It comes after the latest figures showed that of the 2.5 million total UC claimants with a health condition or disability restricting their ability to work last year, 10% were under 25 years old while 38% were aged 50 and above.
Just over half (54%) of claimants were female.
Of the overall total, 14% – some 336,000 – were deemed to have acceptable medical evidence of a restricted ability to work.
Some 15% (366,000) were assessed as having limited capability for work (LCW), and 1.8 million (71%) were assessed as having limited capability for work and work-related activity (LCWRA).
The Government said this means the current system is “effectively abandoning” 1.8 million people “and locking them out of work indefinitely” as the LCWRA assessment means they will not get employment support or further engagement from the system after their assessment.
The Department for Work and Pensions (DWP) said the number of people in this situation had almost quadrupled since the start of the pandemic when it was around 360,000 people.
Under-25s considered too sick to look for work more than tripled, from 46,000 to 160,000 since the pandemic, which the department said demonstrated “a worrying increase in the number of people becoming trapped in inactivity early in life”.
The Government said the current system “gives an incentive for people to say they can’t work – and get locked out of help and support – simply to get by financially”.
The North East had the highest proportion in England of UC health cases relative to overall UC claimants, at almost four in 10 (39%).
This was followed by the South West and North West (both 36%), while the lowest was London (27%).
The highest proportion of UC claimants on UC health last year across Great Britain was in Scotland, at 42%, while the rate in Wales was 40%.
At Prime Minister’s Questions on Wednesday, Sir Keir faced a backlash over the rumoured welfare cuts, with one Labour MP pleading with him to make the “moral” choice.
Richard Burgon told the Commons that disabled people are “frightened” as he urged Sir Keir to introduce a wealth tax instead of “making the poor and vulnerable pay”.
Sir Keir pledged to “protect those who need protecting”, but later added there is no “bottomless pit”.
Social change organisation, the Joseph Rowntree Foundation, said half of those on the health-related element of UC in England are struggling with the cost of living, according to their own tracker data from late last year.
Work and Pensions Secretary Liz Kendall has previously said an upcoming Health and Disability Green Paper will set out plans to support those who can work back into jobs, rather than write them off.
Iain Porter, its senior policy adviser, said: “There is clear evidence of a deterioration in mental health in the population, which goes some way to explaining rising health-related benefit claims.
“The Government’s solution to this issue seems to be cutting the support available through universal credit for people with health problems, which will only push more people into poverty. Half of people receiving the health-related element of universal credit (LCWRA) are either unable to heat their home, behind on bills, or have low or very low food security.
“We await the Government’s forthcoming Green Paper to see whether it will truly address the underlying causes of increasing poor health, whether it will help more people stay in work when they are struggling with their health, and whether it will make the move into work safer for people who feel at risk of losing support.”
Ms Kendall said: “Millions of people have been locked out of work by a failing welfare system which abandons people – when we know there are at least 200,000 people who want to work, and are crying out for the right support and a fair chance.
“This Government is determined to fix the broken benefits system we inherited so it genuinely supports people, unlocks work, boosts living standards while putting the welfare bill on a more sustainable footing.”
