In a move that has stirred controversy within the ruling Labour Party, the U.K. government announced plans on March 18, 2025, to reduce soaring welfare costs. Led by Prime Minister Keir Starmer, the government aims to balance the need for budget savings with the responsibility to support vulnerable citizens.
U.K. Government Proposes Welfare Cuts Amid Budget Crisis
U.K. Government Proposes Welfare Cuts Amid Budget Crisis
As the Labour Party grapples with competing priorities, significant changes are being considered for welfare policies to rein in spending.
Liz Kendall, the work and pensions secretary, explained the rationale behind these cuts: getting people capable of working back into jobs while safeguarding those unable to work and achieving a target of saving £5 billion (approximately $6.5 billion) by 2030. This decision comes on the heels of sharp increases in welfare expenses triggered by the Covid-19 pandemic, which has left over 9.3 million people of working age unemployed, a staggering rise of 713,000 since 2020.
The proposed cuts are particularly contentious for Labour, typically regarded as the steward of the post-World War II welfare state. Currently, around 2.8 million individuals receive long-term sickness benefits, with predictions indicating this number could surpass four million without intervention. Last year alone, the government allocated £65 billion for these sickness payments, sparking concerns regarding the sustainability of such expenditures.
Scrutiny intensifies as the British Treasury, under pressure to boost military funding and address underfunded public services, including healthcare, seeks viable cuts across various public programs. As debates continue within the party, the wider implications for both the economy and the welfare of the nation’s most vulnerable remain to be seen.
The proposed cuts are particularly contentious for Labour, typically regarded as the steward of the post-World War II welfare state. Currently, around 2.8 million individuals receive long-term sickness benefits, with predictions indicating this number could surpass four million without intervention. Last year alone, the government allocated £65 billion for these sickness payments, sparking concerns regarding the sustainability of such expenditures.
Scrutiny intensifies as the British Treasury, under pressure to boost military funding and address underfunded public services, including healthcare, seeks viable cuts across various public programs. As debates continue within the party, the wider implications for both the economy and the welfare of the nation’s most vulnerable remain to be seen.
