Benefits of welfare outweigh the cost, Labour warned ahead of cuts
Benefits of welfare outweigh the cost, Labour warned ahead of cuts
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Sir Keir Starmer has said Labour could be “ruthless with cuts” at the upcoming Spending Review. Labour has been warned against any planned changes to the disability benefits system that would make them harder to access, as a new report arguing the economic value of disability benefits for those in need far outweighs the public cost.
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But stripping back the welfare system to cut costs “misses the bigger picture,” the report from Pro Bono Economics and anti-poverty Z2K has found. Their analysis finds that the economic value of disability benefits is not understood by ministers, urging them to reconsider any planned cuts.
![[Prime minister Keir Starmer told reporters in Ukraine: “We will be ruthless with cuts if that’s what’s necessary.”]](https://static.independent.co.uk/2025/01/19/22/GettyImages-2193151791.jpg)
Changes to the work capability assessment are understood to be central to government plans, with the Treasury committing to match a £1.3bn saving plan made by the previous Conservative government, which adds up to £3bn overall. Under those plans, an estimated 450,000 fewer people would have qualifed for health-related benefits, although Labour has said it will re-consult on the changes.
Ministers have said changes to the current welfare system are necessary, pointing out the spiralling number of people claiming health-related benefits. There are now 3.7 million people of working age receiving them – 1.2 million more than in February 2020.
A consultation launched by the Conservatives in June put forward proposals such as changing the eligibility criteria for work capability assessments, redesigning the PIP assessment, and replacing certain cash payments with vouchers. Labour has said it will put forward its own proposals, but has not ruled out any of these measures.
