Chancellor Rachel Reeves is under significant pressure to reduce the Department for Work and Pensions (DWP) welfare bill, with key benefits potentially facing cuts in the upcoming Autumn Statement.
Manifesto Promise Set to Be Broken
Ms Reeves is preparing to break a key manifesto pledge by raising income tax when she delivers her Autumn Budget on November 26. This controversial move comes amid calls for her to target the ballooning welfare budget instead of increasing the tax burden on workers.
According to government figures analysed by the TaxPayers' Alliance, welfare spending has seen a dramatic increase. It rose from £236 billion in 2015/16 to £285 billion in 2023/24, and is projected to rocket to £324 billion by the end of the decade.
Specific Benefits in the Crosshairs
Campaigners are specifically demanding that the Chancellor clamp down on two particular benefits: PIP enhanced mobility and the limited capability for work element. The Centre for Social Justice warns that spending on sickness and disability benefits alone is set to surge from £49.6 billion in 2024 to £76.8 billion by 2030.
Neil O'Brien, the Conservative Party's Shadow Minister for Policy, described the escalating cost as "ludicrous". He accused the system of being exploited, stating, "The benefits bill is now an extraordinary cost for working people, and the burden is growing fast. There is no doubt some people are milking the system."
Cross-Party Criticism and Internal Labour Concerns
The criticism is not confined to opposition parties. One Labour MP anonymously confirmed internal support for welfare reform, saying, "I'm actually for cutting welfare but it has to be done right. A lot of backbenchers feel like this. It's not fair that people with minor ailments are being given handouts meant for those who are disabled."
John O'Connell, chief executive of the TaxPayers' Alliance, summarised the sentiment of many critics: "Welfare spending is heading into the stratosphere, yet ministers are burying their heads ever further into the sand. Reeves should be cracking down on the benefits bill instead of coming after hard-working taxpayers."
With the Autumn Budget scheduled for November 26, all eyes are on the Chancellor to see whether she will heed these calls and redirect her fiscal plans away from tax rises and towards welfare savings.
