Labour’s proposed benefit reforms have been hit with a wave of backlash
A union boss has criticised Labour’s latest wave of benefit reforms and has called for a fundamental restructure of the welfare system. It comes after Work and Pensions secretary Liz Kendall unveiled a major overhaul of disability benefits, including Universal Credit and Personal Independence Payments (PIP).
Speaking in Parliament this week, she highlighted that the current welfare system is “failing the very people it is supposed to help and holding our country back”. A number of organisations and MPs criticised the reforms, which some branded “cruel and devasting”.
Among the criticism of the proposed changes is RMT general secretary Eddie Dempsey who called for major ‘fundamental’ changes. And he warned these should not include “welfare cuts”.
Mr Dempsey said: “Welfare cuts target people who rely on support to survive, including disabled people, carers, the unemployed, and those in insecure work. For the past 40 years our economy has been marked by low investment, wage suppression and super-high profits.
“Our economy needs to be fundamentally restructured so we can invest in housing, infrastructure and services to create well-paid jobs and provide an adequate safety net for those who fall on hard times. There is an enormous amount of wealth in this country and the Labour government should be using the economic levers at their disposal to capture it from the rich.
“Billions could be recouped by the treasury through levies on wealth, the closure of tax loopholes, and extracting excess corporate profits. RMT stands with all in our working-class communities, including the disabled and unemployed.”
Key changes proposed by Labour
Addressing Parliament, Ms Kendall announced that the “work capability assessment” for universal credit a measure used to determine eligibility for incapacity benefit payments based on an individual’s ability to work will be abolished in 2028. She stated that future additional financial support for health conditions will be based on a person’s health or disability, rather than their capacity to work.
Furthermore, she revealed that the Government plans to introduce a “permanent, above-inflation rise” to the standard allowance of universal credit and will legislate to “rebalance” payments for the benefit. Ms Kendall explained that this would amount to a £775 annual increase in cash terms by 2029.
She described this as a “decisive step to tackle the perverse incentives in the system”. The Government had previously stated that the current system encourages people to claim they cannot work “simply to get by financially”.
She confirmed that the Government will not freeze the personal independence payment (PIP), as had been speculated. However, she stated that they will legislate for a change to the assessment for a benefit which is designed to assist disabled individuals with the increased cost of living associated with their conditions.
She clarified that from November 2026, individuals will need to score a minimum of four points in at least one activity to qualify for the daily living element of the benefit. The Government is set to conduct a review of the PIP assessment process, as confirmed by a spokesperson who highlighted its commitment to consulting with disabled individuals and groups that represent them to ensure the system remains “fit for purpose now and into the future”.
A Number 10 spokesman said: “The whole Cabinet agreed on the need for these reforms and supported the work and pension sector and introducing them, and the crucial importance of addressing a system that has left people trapped out of work and is not supporting people back into work.”
