The Labour government plans to reduce the number of welfare recipients and encourage more people to return to work as part of efforts to save public funds, according to Minister Pat McFadden
Reducing the cost of the welfare system has long been a goal for previous governments, including the Conservatives, who also aimed to implement cuts before being ousted from power last year.
Speaking on Sunday Morning With Trevor Phillips, Chancellor of the Duchy of Lancaster Pat McFadden emphasized that the Labour Party cannot remain idle while the number of people relying on welfare benefits continues to rise each year.
“We are the Labour Party. The clue is in the name. We cannot be relaxed about hundreds of thousands more people going on these benefits every year,” he said.
The government is seeking to find billions of pounds in savings to balance public finances, particularly after committing to an increase in defense spending.
According to McFadden, “We have a package of welfare changes coming soon. The area of disability benefits is especially important.
“Currently, there are over nine million working-age people in the country who are not working. About 30% of them, or 2.8 million people, are on long-term sickness benefits. The cost of this has risen by £20 billion in recent years.
“If no action is taken, this number is expected to increase to over 4 million by the end of the decade. This is not fair to those involved, nor to the taxpayers.
“Therefore, we must take action to ensure that everyone has the opportunity to work.”
However, further details about these changes have not yet been announced, and the timeline for implementation remains unclear. The Office for Budget Responsibility (OBR) is expected to release its latest economic forecast on March 26, while the government is also updating its spending review, scheduled for publication in June.
McFadden also stated that the government will provide more comprehensive employment support, including assistance for 200,000 individuals within the 2.8 million on disability benefits who have expressed willingness to work if given the appropriate support.
“We have a duty to put this support in place. It will not only be better for them but also help reduce the financial burden on the country,” he said.