DWP to unveil big adjustments to advantages – all you’ll want to find out about as we speak’s announcement

Liz Kendall is set to lay out the controversial reforms in the Commons this afternoon – despite major unrest among Labour MPs over a damaging leak of the proposals

Keir Starmer’s government is poised to unveil contentious plans to slash billions from welfare spending. The PM will gather his Cabinet this morning, where they are anticipated to give the green light to a raft of reforms targeting sickness and disability benefits.

Work and Pensions Secretary Liz Kendall is set to address the House of Commons, laying out the proposals in a much-awaited government green paper. Despite significant disquiet among Labour MPs following a leak of the proposals, the government is pressing forward with its agenda to cut billions from the welfare budget.

Chancellor Rachel Reeves is expected to disclose the full extent of the welfare cuts, rumoured to be in excess of £5billion, during the Spring Statement on March 26.

In 2023/24, working-age adults racked up more than £48billion in health and disability benefits, as per the OBR’s figures. By 2029/30, this figure is projected to balloon to over £75billion.

Last week, Keir Starmer lambasted the current welfare system as “indefensible” during PMQs. He declared to MPs: “We must and we will reform it… we will protect those who need protecting. We will also support those who can work back to work. Labour is the party of work. We are also the party of equality and fairness.”

On Monday, Kendall said: “I want to say there has understandably been lots of speculation about the government’s reforms to social security.

“I want to assure the House, and most importantly the public, that we’ll be coming forward with our proposals imminently, to ensure there is trust and fairness in the social security system, and to ensure it’s there for people who need it now, and for years to come.”

Reports suggest that the majority of the cuts, amounting to £5 billion, will target Personal Independence Payments (PIP) by tightening eligibility criteria. This fund assists individuals, whether employed or not, with additional living and mobility expenses associated with their disability.

Furthermore, ministers are committed to continuing Conservative-era plans to reduce expenditure on sickness benefits by approximately £3 billion by 2030. Additionally, Kendall aims to redirect roughly a billion pounds of the savings into employment support services for job seekers, reports the Mirror.

The government is reportedly set to introduce legislation for a “right to try guarantee” that would prevent individuals on health-related benefits from facing automatic reassessment of their entitlements upon taking up employment. Additionally, there is talk of increasing the basic rate of Universal Credit for those in work or seeking jobs, which currently sits at just over £311 per month for singles over 25.

Among the leaked details of proposed reforms, there were hints that Personal Independence Payment (PIP) might not increase with inflation next year. However, it’s believed this idea has been shelved following significant pushback and reminders that even George Osborne, known for his austerity measures as Chancellor, didn’t freeze PIP.

For the latest breaking news and stories from across the globe from the Daily Star, sign up for our newsletters.