Sir Keir Starmer has defended proposed welfare reforms amid concerns from Labour MPs over anticipated budget cuts, insisting that the current system is neither economically nor morally sustainable. While dismissing claims that the changes signify a return to austerity, he highlighted the rising cost of benefits, which are set to surpass the combined budgets of the Home Office and prisons. Amid growing unease among backbenchers about the impact of welfare cuts on vulnerable groups, Downing Street is working to provide reassurance.

Government figures show a sharp increase in Universal Credit (UC) claimants with health conditions or disabilities limiting their ability to work, rising from 2 million in the previous year to 2.5 million by December 2024. Speaking in Hull on Thursday, Starmer stressed that without reform, welfare spending could reach £70 billion annually—equivalent to more than a third of the NHS budget. He argued that many people want increased policing and a more effective criminal justice system, but tough choices must be made regarding public spending.

Starmer criticized the current welfare structure, stating that it discourages people from attempting to enter the workforce because they risk ending up worse off if things go wrong. As a result, he believes too many individuals remain locked out of employment, unable to transition successfully.

When questioned about whether these reforms equate to austerity, the Prime Minister reiterated that Labour stands for work, equality, and fairness but maintained that economic growth is essential to sustaining the welfare system. He particularly highlighted the struggles faced by young people, noting that many are already trapped in a system that prevents them from progressing.

Recent data shows that of the 2.5 million UC claimants with a health condition or disability, 10% are under 25, while 38% are 50 or older. Women make up just over half (54%) of this group. Among them, 14% (336,000) have medical evidence confirming their limited ability to work, 15% (366,000) have been assessed as having limited capability for work (LCW), and 71% (1.8 million) have been classified as having limited capability for work and work-related activity (LCWRA).

Regional disparities also exist, with the North East having the highest proportion of UC claimants with health conditions (39%), followed by the South West and North West (both 36%). London has the lowest percentage at 27%.

During Prime Minister’s Questions, Starmer faced pushback from Labour MPs over rumored welfare cuts. MP Richard Burgon urged him to introduce a wealth tax instead of shifting the burden onto vulnerable groups, warning that many disabled people are fearful of the proposed changes. In response, Starmer vowed to protect those in need but stressed that financial resources are not limitless.

Blaming the Conservative government for leaving behind a flawed welfare system that keeps millions out of work, Starmer reaffirmed his commitment to supporting people while promoting employment. He emphasized that while assistance must be available for those who require it, the country must also prioritize economic growth to maintain financial stability.