London Daily

Focus on the big picture.
Sunday, Mar 22, 2026

Labour Government Faces Backlash Over Proposed Welfare Cuts and NHS Restructuring

Labour Government Faces Backlash Over Proposed Welfare Cuts and NHS Restructuring

Sir Keir Starmer defends welfare reforms while concerns mount over impacts on vulnerable populations and healthcare jobs.
Sir Keir Starmer has articulated a defense of planned welfare reforms, stating the current welfare system could not be justified on economic or moral grounds.

This assertion comes amidst criticism from Labour MPs regarding anticipated reductions to the welfare budget, which are projected to surpass the budget for the Home Office and prisons combined.

Starmer emphasized that the cost of benefits in the UK is rising significantly, with projections of welfare spending reaching £70 billion annually, which would represent a substantial portion of the National Health Service (NHS) budget.

On a visit to Hull, he remarked that the system is 'baking in' many individuals, preventing them from seeking employment due to fear of worsened circumstances.

Starmer indicated that the government is committed to 'protecting those who need protecting' but also noted the fiscal realities of the country's economic situation.

Recent figures indicate that the number of claimants on Universal Credit (UC) with health conditions or disabilities that limit their ability to work has grown by half a million over the last year, totaling 2.5 million.

Among this group, those aged 50 and above comprised 38%, while 10% were under the age of 25. The current structure has resulted in 1.8 million individuals deemed to have limited capability for work and work-related activity receiving no employment support after assessment.

Critics have accused the government of effectively abandoning these individuals and locking them into a cycle of inactivity.

Reports note that the welfare system has seen a dramatic increase during the pandemic, with the number of individuals classified as too sick to search for work tripling among under-25s.

In response to criticism, Work and Pensions Secretary Liz Kendall has outlined an upcoming Health and Disability Green Paper, intended to outline strategies for facilitating a return to work for individuals deemed able.

Concurrently, a local Labour councillor, Shiva Tiwari, has defected to the Conservative Party, citing dissatisfaction with Labour's economic policies and claiming they do not adequately address the need for economic growth.

Tiwari has expressed concern over the state of local governance and public services under Labour control.

His departure from the Labour Party added to the narrative of internal party conflict.

Further reforms proposed by Starmer's government include the abolition of NHS England, part of a larger initiative to limit bureaucracy in the healthcare system.

Health Secretary Wes Streeting indicated that this restructuring could result in job losses exceeding 30,000 as the government aims to shift NHS operations back under 'democratic control.' Streeting's statement suggested an initiative to reduce inefficiency in the health service, though he could not confirm that job losses would not affect frontline workers.

Critics within the NHS and local political leaders have raised concerns about the potential impact of such significant staffing cuts on patient care and service delivery.

The Health Service Journal reported that the NHS's incoming chief executive, Sir Jim Mackey, has communicated directives to cut costs drastically, warning that such cuts might jeopardize the delivery of vital health services.

The reaction within the NHS has been one of alarm, with many officials questioning the sustainability of maintaining service standards under such financial constraints.
Newsletter

Related Articles

0:00
0:00
Close
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
×