The Department for Work and Pensions is set to unveil an overhaul of disability benefits – including Personal Independence Payment. Disability benefits will be targeted by the new Labour Party government and DWP in a shake up in a bid to “tackle market anxiety”.
Chancellor Rachel Reeves Reeves has instructed the Treasury that she wants to get “tough” on spending according to The Telegraph, favouring cuts in unprotected departments over new tax increases. The DWP told The Telegraph its commitment to helping disabled people who can work secure employment while ensuring support remains available for those who need it.
The reforms are expected to form part of what officials describe as a “proper plan” to address the benefits system. Jack Meaning, Barclays Bank’s UK chief economist, warned there was a “high chance” the Chancellor would need to announce emergency spending cuts during her upcoming Spring Budget.
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A DWP spokesman said: “We don’t comment on speculation. We have been clear that the current benefits system needs reform so it is fairer on the taxpayer and people get the support they need to move into work.” These would build on the government’s Get Britain Working White Paper, they said.
The Treasury will be “ruthless” over public spending cuts to help meet the government’s fiscal rules at this summer’s spending review, Keir Starmer has said, despite previous promises over austerity. “We never pretended, nor would anybody sensibly argue, that after 14 years of failure you can turn around our economy and public services before Christmas. Before the election, I said it is not going to be possible to do this in six months. It’s going to take time,” he said.
“We have got clear fiscal rules, and we are going to keep to those fiscal rules, and that’s why the chancellor was absolutely right in the words that she chose to describe the approach that we will take,” Sir Keir went on to say.
The prime minister told reporters: “Rachel Reeves is doing a fantastic job. She has my full confidence. She has the full confidence of the entire party. She was given an incredibly challenging job at the budget. She took tough decisions.
“She was right to take the tough decisions.” He declined, however, to say whether she would still be his chancellor by the end of this parliament