Labour MPs urge Rachel Reeves to rethink cuts to health and disability benefits

Rachel Reeves has faced pleas from Labour MPs to reverse cuts to health and disability benefits, amid warnings they will lead to increased poverty.

The Chancellor claimed the Government “inherited a broken” welfare system as “more than 1,000 people” qualify for personal independence payments every day – and one in eight young people are not in employment, education or training.

Ms Reeves used the spring statement to confirm further pressure on the welfare budget, which follows cuts to the disability and incapacity bill set out earlier this month.

The Government expects the measures to save £4.8 billion rather than the more than £5 billion in 2029/30 hoped for by ministers.

Labour MP Debbie Abrahams, who chairs the Work and Pensions Committee, told the Commons: “I recognise the difficulties that (Ms Reeves) is facing in terms of fiscal challenges and so on that she inherited and I also support the reforms (Work and Pensions Secretary Liz Kendall) has set out.

“But all the evidence is pointing to the fact that the cuts to health and disability benefits will lead to increased poverty, including severe poverty, and worsened health conditions as well.

“How will making people sicker and poorer help in terms of driving our economy up and people into jobs?”

Ms Reeves replied: “In the green paper we’re consulting on a premium payment for the most severely sick and disabled because as a Government we believe that those people need support should get it.

“But like (Ms Abrahams) I recognise that there are many people who are sick and disabled, there are many young people who could be working but were written off by the previous government and that’s why we’re putting record investment in helping getting those people back to work, with guaranteed, personalised and targeted support.

“You’re half as likely to be in poverty if you’re working, if you move from welfare into work and we’re determined to lift people out of poverty by ensuring there are good jobs paying decent wages with a security that’s guaranteed through the Employment Rights Bill.”

Labour MP Rachael Maskell (York Central) recognised the importance of fiscal responsibility before adding: “However, as a Labour Party we’ve got an additional responsibility around having social responsibility.

“So can we look at the DWP (Department for Work and Pensions) changes again? Of course protecting the most vulnerable, but it’s those people just above that band which are set to lose and we’re really worried about those.”

Ms Reeves, in her reply, said: “I share the deep concern of all of us on this side of the House, I think everyone in the chamber shares the concern about the most sick and disabled who need support, which is why in the green paper we’re consulting on an additional premium payment for the most severely disabled.”

Labour MP Richard Burgon, a former shadow Treasury minister, said: “Making cuts instead of taxing wealth is a political choice, and taking away the personal independence payments from so many disabled people is an especially cruel choice.

“A disabled person who can’t cut up their own food without assistance, and can’t go to the toilet without assistance, and can’t wash themselves without assistance will lose their personal independence payment.

“So hasn’t the Government on this taken the easy option of cutting support for disabled people rather than the braver option which would be to tax the wealthiest through a wealth tax?”

Ms Reeves replied: “There is nothing progressive, there is nothing ‘Labour’ about not supporting people who are disabled and sick and young people to do jobs that are commensurate with what they are able to do.”

She added: “In the budget last year, we got rid of the non-dom tax status, we increased capital gains tax, we introduced VAT on private schools and we changed the rules of inheritance tax, so I don’t recognise what (he) says.”

Imran Hussain, Labour MP for Bradford East, said the Conservatives “devastated our communities and left us with billions of pounds of debt, but it is not right that disabled people and the most vulnerable in our society should pay for that”.

He told the Commons: “We must make the right political choice – protect the most vulnerable in society and introduce a wealth tax so that multimillionaires and billionaires can pay their fair share.”

Labour MP Nadia Whittome (Nottingham East) also asked: “What is the justification for cutting disability benefits – especially when a third of disabled people are already in poverty – instead of choosing to tax the growing wealth of the super rich?”

Steve Darling, the work and pensions spokesman for the Liberal Democrats, said: “Today and last week, the Chancellor rushed through severe cuts to the benefits system that will hit some of the most vulnerable in our society. Whilst we should have considered benefit reform, this is ill-conceived.

“Can the Chancellor explain to the chamber why she is choosing to balance the books of the nation on the backs of some of the most vulnerable in our society?”

Ms Reeves said: “I have huge respect for (Mr Darling), but I think everybody in this House and in the country can see that the welfare system is just not working. When you’ve got one in eight young people not in education, employment or training, 1,000 people going onto personal independence payments every single day. We can’t carry on like this.

“The basic principles of this Government is that people who need support should be protected.

“Those who can work should work, and we will support them with personalised targeted support, and that we need a system that is sustainable.”