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Tuesday, Jul 01, 2025

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.
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