London Daily

Focus on the big picture.
Thursday, Mar 12, 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
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
×