Government must reform broken benefits system, insists Rachel Reeves

In March 2025, Labour MPs expressed their concerns regarding anticipated cuts to the welfare budget, particularly in relation to the negative impact on vulnerable individuals relying on benefits. The Chancellor, Rachel Reeves, labeled the existing benefits system as 'broken' and inadequate for both those in need and taxpayers, stating that it has been failing to support citizens effectively. A significant rise in universal credit claimants with health conditions highlighted an urgent need for reform, with backbench Labour MPs voicing their discontent over proposed cuts that could further harm those in need. The Cabinet is reportedly divided on the matter, with more than half of the ministers urging reconsideration of the reforms. Prime Minister Keir Starmer allowed time during a cabinet meeting for discussions about spending cuts, revealing growing unease about the political repercussions of the proposed welfare cuts despite the Government's majority in Parliament. Work and Pensions Secretary Liz Kendall is expected to announce potential savings in the welfare budget of £5-6 billion in the coming week, which is further fueling the concerns among members of Parliament. Representatives from the Labour Party, like Richard Burgon, have publicly criticized the expected cuts, emphasizing the fear among disabled individuals while suggesting alternative approaches like a wealth tax. A Downing Street spokesperson emphasized that failing to reform the welfare system would lead to increased taxpayer burden and continued unemployment. The Government's approach is fundamentally aimed at reducing the number of working-age individuals reliant on benefits, with a focus on encouraging employment as a means to stimulate economic growth. Calls for a re-evaluation of the proposed welfare cuts indicate substantial internal opposition within the Labour Party, highlighting the need for a cohesive strategy that balances financial savings with the ethical implications of social support redundancy. As ministers continue to deliberate on the most effective path forward, the urgency for systemic change in the benefits system remains a central concern for both the Government and the public.