The Labour government has announced plans to make radical changes to the existing welfare system. These plans, published in a Green Paper titled “Pathways to Work” on March 18, are aimed at getting more people off benefits and into work, and reforming Britain’s “broken” welfare system. The government’s intention is to make £5 billion worth of cuts to welfare spending by 2030.
The Personal Independence Payment (PIP) would be targeted by this Green Paper. PIP financially supports disabled individuals with managing their additional needs, such as getting to appointments or paying for social care. The stricter PIP eligibility criteria—coming into effect from November 2026—means that those who, for example, require additional assistance with washing and dressing themselves, may find it harder to qualify for payments. This reform will be introduced via primary legislation and the government will not be consulting on this.
Other reforms would include scrapping the Work Capability Assessment, halving the health top-up on Universal Credit for new applicants, and barring under-22s from accessing the top-up.
Many have strongly criticised these reforms. Disability Rights UK has said that these reforms would be “penalising” disabled people and increasing poverty rates. The charity has also hit back against the increase in face-to-face assessments for PIP applications, arguing that face-to-face assessments cause more stress for the applicant and result in a more inaccurate assessment.
Versus Arthritis said they were “hugely disappointed” with the proposed cuts to access to PIP and health top-up. They raised concerns that many working arthritis-sufferers rely on government support to manage their needs, and so payment cuts could take even more people out of work. People with musculoskeletal diseases, such as arthritis, represented 19% of PIP claimants in 2024, the second highest condition after psychiatric disorders.
Various political parties have criticised Labour’s proposed reforms. Liberal Democrat MP Gideon Amos called the plans a “massive sledgehammer“. Green MPs Carla Denyer and Adrian Ramsay have urged Labour backbenchers to vote plans down.
The starkest divisions, however, have emerged from within the Labour Party itself. Labour representatives from all levels, including councillors, group leaders and MPs, have expressed their indignation.
Four Dudley Labour councillors, including the Party’s group leader, Peter Lowe, quit the Labour Party in response to the proposed welfare reforms. One of the councillors, Peter Drake, called the Labour government’s policies “punitive, uncompassionate and downright idiotic”.
A prominent Scottish disability campaigner, Carolynne Hunter, has recently withdrawn her Labour membership, expressing how “disgusted” she felt. In response, Scottish Labour MSP Monica Lennon said that this should be a “wake-up call” to the government.
Many MPs have publicly expressed their outrage with the planned reforms, with Kim Johnson MP deeming the reforms as “indistinguishable” from the austerity measures pursued by the Conservatives. Ian Byrne MP was worried about the “severe hardship” that many disabled people would face if the reforms went ahead. Byrne has challenged the government before, having temporarily lost the whip for voting against the retention of the two-child benefit cap.
Zarah Sultana MP has labelled the plans “austerity 2.0“, arguing instead for a 2% tax on assets worth over £10 billion. Apsana Begum MP said that cuts could “cost lives” in her constituency. Like Byrne, Sultana and Begum also temporarily lost the Labour whip for rebelling on the two-child benefit cap vote.
The potential for a significant rebellion is there. About 100 Labour MPs attended a meeting with Liz Kendall MP and disability minister, Stephen Timms MP, including those considered to be on the “right” of the party and newly-elected MPs. However, one MP stressed that the current focus was on changing the contents of the Green Paper, not a parliamentary rebellion at this stage.
Perhaps the most vulnerable Labour MPs are those that have been firm bricks in the “Red Wall”, with the looming threat that Reform could gain ground in some of most deprived constituencies in the UK. If Labour pull off these changes, it could allow Reform to continue to stir the pot as they proceed to portray Labour as traitors to the working class.
According to a YouGov survey, the vast majority of the British public believe that, even if there is capacity for cuts to welfare spending, the consequences would be negative. Labour’s welfare reforms, if carried out, would likely go down quite badly with the public, and not help its abysmal polling after its unprecedented ratings collapse after the general election.
While these reforms are not yet legislation, the announcement of these reforms has certainly sent shockwaves through the Labour Party, and has the potential to cause chaos.
