UK Government to Cut £6 Billion from Welfare, Including Disability Benefits, Amid Plans for 1.5 Million New Homes

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Updated Mar 12, 2025, 07:29 PM

Prime Minister Keir Starmer has announced plans to reform the UK's welfare system, describing it as 'unsustainable, indefensible and unfair.' The proposed reforms include significant cuts to disability benefits, with the government aiming to reduce the welfare budget by up to £6 billion. These cuts are part of a broader strategy to address the rising welfare bill, which is projected to reach £70 billion by the end of the decade. The proposed changes to Personal Independence Payments (PIP) include making it harder to qualify for the benefit and potentially freezing payments next year, preventing them from rising with inflation. These measures are expected to save around £5bn. The government plans to redirect £1bn into employment services to help claimants find work. These measures have sparked a backlash among Labour MPs, with some expressing concerns over the impact on vulnerable disabled individuals. According to a DWP survey, 49% of people on health and disability benefits believe they can never work, though ministers believe more could work with the right support. Labour MP Richard Burgon has called for a wealth tax as an alternative to cutting benefits, arguing that it would be the 'moral and courageous' thing to do. In addition to welfare reforms, the Labour government is set to introduce the Planning and Infrastructure Bill, aimed at stimulating economic growth through increased housebuilding and infrastructure development. The bill is expected to streamline planning processes and deliver on the government's promise to build 1.5 million new homes and make decisions on 150 major infrastructure projects by the next election. The bill also includes a scheme for those living near new electricity pylons to receive up to £250 a year off their energy bills for 10 years. The government's decision to pause the Sustainable Farming Incentive (SFI) scheme without warning has also drawn criticism, particularly from the farming community. This move, combined with inheritance tax changes, is seen as another blow to farmers, with National Farmers' Union President Tom Bradshaw describing it as 'another shattering blow.'

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#Keir Starmer #UK #Personal Independence Payments #Labour #DWP #Richard Burgon #Planning and Infrastructure Bill #Sustainable Farming Incentive #Tom Bradshaw

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Sources

bbc.co.uk(10)mirror.co.uk(8)news.sky.com(7)itv.com(6)

The i Paper

@theipaper

Benefits cuts could be watered down amid Labour MP anger 🔴 No 10 wants to avoid another controversy such as the one that followed cuts to the winter fuel payment @Kitty_Donaldson and @ChaplainChloe report https://t.co/Ts7GYUbK4M

iain watson

@iainjwatson

There is broad backing in @uklabour to reform the welfare system but some of the potential specific changes are concerning usually loyal MPs. @HarryFarley_ and I have been talking to some who have been privately sharing their worries with No10. https://t.co/gfkVIoiAOJ

The i Paper

@theipaper

The Government is poised to cut Personal Independence Payments (PIP) payments, it has been reported, in an attempt to save up to £6bn from the benefits bill Here, two PIP claimants tell @theipaper about their experiences ➡️ Read more: https://t.co/JWCydBwB9F https://t.co/jIlhm2GZuI