Chancellor Rachel Reeves has urged Labour MPs to acknowledge the pressing need for reforming the UK’s welfare system, amid growing backlash over proposed cuts to disability benefits.
Her remarks follow a strongly worded letter signed by 42 Labour backbenchers, addressed to Sir Keir Starmer, calling on the party leader to halt the government’s proposed changes.
The MPs described the cuts as “impossible to support,” warning they would amount to the most severe assault on the welfare state since the austerity measures introduced by George Osborne.
Proposed Cuts Spark Intra-Party Division
The government’s proposals, laid out in a Green Paper in March, would tighten eligibility for the Personal Independence Payment (PIP) — the primary disability benefit in England.
The plan could see support withdrawn from up to 800,000 claimants, while further reductions are also expected in the sickness component of Universal Credit.
Labour backbenchers criticised the approach as misguided, stating: “Ministers have correctly identified the problem — a broken benefits system and lack of opportunities — but they are prescribing the wrong medicine.”
They urged the government to delay any decisions until full assessments are published on the policy’s potential impact on employment, public health, and social care demand.
Reeves: Reform Essential to Economic Growth
In response, Reeves insisted the welfare system in its current form is no longer fit for purpose.
“I don’t think anybody, including Labour MPs, believes that the Conservative-created welfare system is working,” she said. “They know that reform is necessary.”
While defending the proposed changes, Reeves emphasised that reform would be paired with support for those genuinely unable to work. “The welfare state must always be there for people who can’t work — and under this government, it will be,” she assured.
“But there are too many people trapped on benefits who are desperate to contribute and have been denied opportunity for too long. That will change,” she added.
Tensions Within Labour Ranks
The letter was signed by a number of prominent critics of Starmer’s leadership, including Rachael Maskell, Diane Abbott, Brian Leishman, and Emma Lewell-Buck.
Several of the signatories also called for a new policy direction following Labour’s performance in last week’s local elections.
As debate intensifies, the government faces mounting pressure to justify its welfare overhaul while balancing public concern with economic priorities.
