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Reform UK plans £50bn welfare savings by overhauling payments
🇬🇧 United Kingdom /Elections & Politics

Reform UK plans £50bn welfare savings by overhauling payments

From BBC News · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Reform UK proposes a welfare overhaul aiming to save £50 billion by shifting support for people with "lower-level conditions" to local councils.
  • The plan includes incentives for employers to help people return to work and a rigorous disability assessment for those out of work for two years.
  • Labour criticizes the savings as "fantasy economics" and warns of stripping support from disabled people.

Reform UK has unveiled plans for a significant overhaul of the welfare system, projecting £50 billion in savings. The proposal, detailed by MP Jonathan Jenrick, aims to move away from traditional Universal Credit and Personal Independence Payments for individuals with "lower-level conditions."

Instead, support would be channeled through local councils and mayors, covering needs like transport and equipment. Employers would be offered a "return to work" cover, providing a "strong economic incentive" to rehire staff on sick leave. A stringent disability needs assessment, conducted in person, would be implemented for those unemployed for two years to identify fraudulent claims.

We will not pretend this is painless

— Jonathan JenrickDescribing the proposed welfare reforms.

Jenrick estimates that 2.16 million current claimants would retain their full entitlement, while 2.89 million might see modifications or withdrawal of payments. The plan acknowledges the difficulty, with Jenrick stating, "We will not pretend this is painless." He argues that leaving young people on welfare is "neglect," not compassion.

Dumping our young people onto welfare isn't compassion; it's neglect.

— Jonathan JenrickJustifying the need for welfare reform.

Labour has strongly contested the £50 billion savings figure, labeling it "fantasy economics." A Labour spokeswoman asserted that the plan relies on reducing support for disabled individuals and shifting costs to employers. She contrasted this with Labour's own welfare reforms, which she described as "credible, independently-costed savings."

The proposed changes come as the government grapples with welfare reform. Recent adjustments to Universal Credit have already halved the health element for new claimants with less severe conditions. Disability Minister Sir Stephen Timms' interim report also deemed the Personal Independence Payment "not fit for purpose," suggesting a fundamental redesign is necessary.

Reform's £50 billion claim is fantasy economics, built on stripping support from disabled people and shifting costs onto employers.

— Labour spokeswomanCriticizing Reform UK's savings projections.
DistantNews Editorial

Originally published by BBC News in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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