British PM says soaring disability payments ‘devastating’

Britain’s Prime Minister Keir Starmer on Wednesday warned that the country’s soaring disability costs are “devastating for the public finances,” following the Labour government’s announcement of £5 billion ($6.5 billion) in cuts. Work and Pensions Secretary Liz Kendall on Tuesday introduced a “significant reform package” aimed at helping disabled people enter the workforce. However, some Labour MPs and charities criticized the changes, particularly regarding how claimants are assessed.

Writing in The Times, Starmer highlighted the increasing financial burden, stating, “By 2030, we are projected to spend £70 billion a year on working-age incapacity and disability benefits alone.” He also emphasized the human impact, noting that young people are being shut out of the labour market and individuals with complex conditions are “written off by a single assessment.” Kendall said the reforms would generate annual savings of £5 billion from the end of the decade.

The Prime Minister described the 2.8 million working-age people out of work due to long-term sickness as a “damning indictment” of the previous Conservative government’s welfare policies. He argued that too many people who want to return to work cannot access the necessary support, calling the situation “indefensible” and stressing the urgency of reform.

Kendall’s welfare overhaul includes narrowing eligibility for the Personal Independence Payment (PIP), a benefit designed to support disabled individuals. Official data revealed that 3.66 million people in England and Wales were entitled to PIP at the end of January—a 71 percent increase since before the COVID-19 pandemic. Kendall noted that more than 1,000 new PIP awards are granted daily.

The announcement of welfare cuts has sparked controversy, particularly as it follows the government’s decision to increase defence spending. With high borrowing costs already straining public finances, the move has intensified debates over fiscal priorities and social support.