Labour Divided Over £5 Billion Disability Benefit Cuts
Labour Divided Over £5 Billion Disability Benefit Cuts

Labour Divided Over £5 Billion Disability Benefit Cuts

News summary

A significant rift within the Labour Party has emerged over proposed benefit cuts, with Work and Pensions Secretary Liz Kendall advocating for reinvestment of £5 billion in welfare savings into back-to-work schemes targeting long-term sickness. Chancellor Rachel Reeves, however, favors cutting the funding from disability benefits to avoid tax increases and additional spending cuts. The proposed changes could impose stricter requirements on long-term sick claimants, including mandatory job searches, which Kendall argues is necessary to support those locked out of employment. The ongoing debate is further complicated by rising defense spending demands amid geopolitical tensions. Meanwhile, the Labour government faces criticism from its backbenchers regarding the potential impact of these welfare cuts, particularly the two-child benefit cap. A review aimed at improving employment opportunities for the disabled and long-term sick is also underway, highlighting the urgency of addressing the rising inactivity levels in the workforce.

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