UK Labour Government Plans Welfare Cuts to Curb Spending

Britain’s Labour government is set to announce significant cuts to disability and long-term health support on Tuesday, aiming to reduce the country’s rising welfare bill. The move comes ahead of the March 26 fiscal statement, where the government will outline its strategy to balance public spending with tax revenues amid lower-than-expected economic growth. With the welfare budget projected to exceed £100 billion ($129 billion) by 2030, ministers are focusing on reducing costs while encouraging more people back into work.

Finance Minister Rachel Reeves defended the decision, stating that the current benefits system is failing both recipients and taxpayers. “People are often trapped on benefits rather than getting the support they need to return to work,” she told Reuters. However, the proposed £6 billion ($7.79 billion) in cuts has sparked concerns among some Labour lawmakers, given the party’s sweeping election victory on promises of economic renewal. The government maintains that these measures are necessary to ensure fiscal responsibility without resorting to past austerity policies.

The announcement follows controversy over previous cost-cutting measures, including last year’s decision to reduce winter fuel payments for some pensioners, which led to internal party disputes. Prime Minister Keir Starmer’s administration has rejected comparisons to the Conservative-led austerity drive after the global financial crisis, which Labour blames for the country’s long-term economic challenges. The details of the welfare changes are expected to be presented in Parliament later on Tuesday.

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