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The United Kingdom Prime Minister Kyar Starmer has revealed a large shaking of the country's social assistance system, arguing that this could save the country £ 5 billion ($ 6.48 billion) a year by 2030, but caused political order in the process.
In particular, the government is reducing health and disabilities, making it difficult for people with less difficult conditions to receive state support.
Starmer faces the angry opposition of charity organizations, brain tanks and even senior members of their own Labor Party during the moves announced this week.
Prime Minister and Chancellor Rachel Reeves claims that they are forced to make costs after inheriting a terrible financial situation by the previous conservative government, which has managed for 14 years at different premieres until the general elections in July.
The United Kingdom government manages a huge deficit, which means I have to borrow from the financial markets every month to finance costs.
However, Starmer critics said these abbreviations were aimed at the most vulnerable people in society and claim that the Labor Party, founded in 1900 by the union movement, had lost its sense to go.
Colum Eastwood, a Labor Nursing MP, the Social Democratic and Labor Party, in Northern Ireland, referred to the case of a staff that will lose financial support for reforms and demanded Parliament on Wednesday: “What is the meaning of labor?”
As the Covid-19 pandemia, the cost of disease and disabilities has increased in the UK, as a large number of people say they are not able to work and need state aid to live. Experts said they still did not know if this was a direct result that people were diagnosed with a long cow, but during the pandemic, it became easier for people to apply for benefits without being evaluated personally.
Reeves are expected to introduce more redundancies in government spending in his spring statement to parliament next week.
What benefits for well -being decreases the United Kingdom Government?
Most of the 5 billion pounds will come from tightening the application rules for PIP-personal independence payments, which are paid to people with disabilities or long-term illnesses.
The benefit involves a daily live element and a mobility component. PIP is currently being paid to 3.6 million people who mark from zero to 12 for their ability to perform tasks, such as food preparation and dress. The higher the result, the more support is offered.
From November 2026, people will have to achieve at least four points in at least one activity to qualify for the everyday element of life. Things that evaluate under four points include the need to be reminded of food preparation, shower help, or washing and dressing the lower body and the need for help with other people.
According to the further rules, people receiving PIP will also be more frequently reassessed.
PIP payments are usually around £ 100 ($ 130) a week and can still be paid to people who work.
Green's green paper and damage to the government will increase support for universal credit (UC) for up to four million families without any health conditions or disabilities by about 3 pounds ($ 3.90) a week, but this is a small part of the wider plan.
How many people will be affected?
Starmer told parliament that the fact that 2.8 million people of employment do not work due to a long -term illness is a “damn accusation” of his predecessors.
Resolution Foundation, Central Pipe Trust said that if the government plans to save £ 5 billion from a PIP restriction, making it difficult for the daily life component to mean 800,000 to 1.2 million people to lose 4200 pounds ($ 5,450) (8 pounds) (8.450)
“With seven in 10 PIP claimants living in families in the poorest income distribution, these losses will be highly concentrated in lower-income households. This seems like a short-term” noted “savings exercise, not a long-term reform,” the resolution said.
What is the justification for these cuts?
From the pandemic, the costs of health and disabilities have increased in the UK. The benefits are now worth £ 65 billion ($ 84 billion) a year and is expected to increase to £ 100 billion ($ 130 billion) a year by 2029. It's more than the United Kingdom for Defense.
Labor says it wants to be a party for people who work and encourage as many people as possible to do so.
The Minister of Work and Pensions, Stephen Tims, said the reforms will also lead to savings that will protect well -being in the long run.
“We think we have now made the system stable and are committed to maintaining it,” he added.
How did critics react to the cuts?
The opposition Conservative Party said the cuts were simply “hasty” attempts to make government finances look better in the short term, and the widespread system needs a wider repair, which estimates that it can save £ 12 billion ($ 16 billion) a year.
The advocacy groups expressed anger at cuts. The disability benefits consortium, which represents more than 100 charity organizations, said: “These immoral and devastating redundancies will push more people with disabilities in poverty and worsen people's health.”
Richard Burgon, a MP from Leeds East, wrote to X: “The government must miss this cruel proposal or face the mother of all riots.”
Today, the Prime Minister failed to answer a simple question why a disabled person who needs help to eat, wash and manage the needs of the toilet can no longer receive PIP under his suggestions.
The government must miss this cruel proposal or will face the mother of all riots.
– MP of Richard Burgon (@richardburgon) March 19, 2025
The chairman of the Committee for the Selection of Jobs and Pensions Debbie Abrahams, a Labor MP, said there were “more compassionate” ways to balance books, “not on the back of patients and people with disabilities.”
What will be the economic impact of redundancies?
The government hopes that making these cuts will allow him to reduce loans, freeing money for other things. This move follows this one shortening of winter fuel payments For some pensioners last year.
Labor hopes that by making such controversial steps at the beginning of his term, he will have enough time to strengthen the economy and impress the voters before the next election, probably in 2029.
RoS Mord, an investment director at Stockbroker AJ Bell, said: “Rachel Reeves will hope that it is assessed on the basis of the results of the economy throughout this parliament, not just the first few months of this Labor Administration.
“The next election is due in the latest by August 2029, and it makes sense to try to get the bad news out of the way now in the hope that the economic picture seems much more bright than the time the voters return to the urn.”
Will public spending cuts cure the UK economy?
The Economic Cooperation and Development Organization (OECD) has reduced the UK forecasts due to slow growth lately. But the OECD also suggested that the United Kingdom would feel the effects of “increased geopolitical and political uncertainty, weighing investment and household costs.”
He expects the United States President Donald Trump New rates To create an less favorable global and internal environment for the United Kingdom.
The savings generated by these abbreviations on social payments amount to much less than 1 % of the gross domestic product (GDP), economists said. They added that the biggest problem for the United Kingdom is that it is fighting for economic growth in the first place.
Paul Dales, chief economist of the United Kingdom in the capital economy in London, said: “The abbreviations will reduce total government spending by about 0.15 percent of GDP. We expect cuts at separate costs for more 0.15 percent of GDP or so to be announced in the fiscal update of the office.
Reeves said more and deeper changes would be needed to turn government finance. “I don't think anyone believes the current system works,” she told Reuters news agency. “It does not work for people on benefits, which are often caught in the field of benefits, not to receive the support they need to return to work … and at the same time it does not work for taxpayers.”
