UK Government Proposes Controversial Welfare Cuts to Address Budget Challenges

Sat Jun 21 2025 16:18:26 GMT+0300 (Eastern European Summer Time)
UK Government Proposes Controversial Welfare Cuts to Address Budget Challenges

As welfare costs rise post-pandemic, the Labour government seeks to balance fiscal responsibility with protecting vulnerable populations.


In a bid to save £5 billion by 2030, the UK government has announced plans to reform disability and work benefits, sparking significant internal debate within the ruling Labour Party.

Britain’s work and pensions secretary, Liz Kendall, addressed Parliament on Tuesday regarding the government's strategy to tackle the escalating costs of welfare. With the aim of balancing fiscal responsibility, incentivizing employment, and safeguarding the vulnerable, Kendall insisted that “the status quo is unacceptable” and committed to “decisive action” to ensure support for those unable to work while encouraging employment for those who can.

The move comes after intense discussions within the Labour Party led by Prime Minister Keir Starmer, particularly given the party’s historical role in establishing the welfare state in the UK. The government acknowledges that over 9.3 million working-age individuals in England, Scotland, and Wales currently remain unemployed, a concerning increase since the onset of the Covid-19 pandemic. With nearly 2.8 million receiving long-term sickness payments, there are fears that the figure could swell to over four million if decisive action is not taken.

As the Treasury faces growing pressure to bolster military spending amidst signs of economic stagnation and an underfunded public health system, the government seeks to implement changes to welfare policies that will contribute to a projected £65 billion expenditure on sickness benefits from the previous year. Despite the urgency for reform, the proposed cuts to disability allowances have drawn criticism from various sectors of society concerned about the impact on the most marginalized groups in Britain.

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