Prime Minister Keir Starmer to handle the nation at this time after funds backlash
It comes after Rachel Reeves has been forced to defend herself against claims she misled voters over the scale of the fiscal challenge in the run-up to the Budget
Sir Keir Starmer is set to address the nation today with a new push on welfare reform amid a row on whether Rachel Reeves misled the public over the state of public finances. The PM will say an overhaul of the welfare system is necessary after he was forced to abandon cuts earlier this year in the face of a major backbench rebellion.
It comes after his summer U-turn saw changes to personal independence payment (Pip) eligibility stripped out of the Government’s welfare legislation, amid warnings from rebel MPs of the impact on disabled claimants.
“We have to confront the reality that our welfare state is trapping people, not just in poverty, but out of work,” the Labour leader will say on Monday, arguing reforms are not aimed at making him “look somehow politically ‘tough’”, but at reversing low productivity.
The U-turn has left a £4.8 billion gap in the Chancellor’s Budget preparations, eliminating anticipated savings.
Ms Reeves has had to fend off accusations that she misled voters by exaggerating the extent of the fiscal challenge ahead of last week’s Budget, where she unveiled tax increases amounting to £26 billion.
She argued that an Office for Budget Responsibility (OBR) forecast, which showed a £4.2 billion surplus against her borrowing rules, did not factor in the welfare reform reversal or the scrapping of the two-child benefit cap.
On Monday, Sir Keir is expected to spotlight the abolition of the two-child limit – a move predicted to lift 450,000 children out of poverty – a decision that seems to have placated disgruntled Labour backbenchers.
The Prime Minister will now redirect his efforts towards addressing other issues within the welfare system, as per Downing Street.
In what appears to be an attempt to deter backbenchers from further rebellions over welfare reform, the Prime Minister will state: “We have to confront the reality that our welfare state is trapping people, not just in poverty, but out of work. Young people especially. And that is a poverty of ambition.
“And so while we will invest in apprenticeships and make sure every young person without a job has a guaranteed offer of training or work, we must also reform the welfare state itself – that is what renewal demands.
“Now – this is not about propping up a broken status quo. Nor is it because we want to look somehow po The Tories’ approach was politically ‘tough’, but it resulted in an £88 billion increase in the welfare bill. They left children too impoverished to eat and young people too sick to work. It was a complete failure.
“No, this is about potential. Because if you’re overlooked that early in your career, if you’re not given the support you need to overcome your mental health issues, or if you’re simply dismissed because you’re neurodivergent or disabled, then it can trap you in a cycle of joblessness and dependency for decades.
“Which costs the country money, is bad for our productivity but, most importantly of all, costs the country opportunity and potential.”
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