Rachel Reeves today doubled down on planned benefit cuts as she faces a Cabinet revolt. The Chancellor warned that the Government must “get a grip” on the welfare system despite half of Sir Keir Starmer’s top team reportedly voicing concerns at the weekly Cabinet meeting.
A source told Bloomberg that some Cabinet members are on resignation watch depending on the scale of the cutbacks But speaking during a visit to Scotland this morning, Ms Reeves said: “We will set out our plans for welfare reform, but it is absolutely clear that the current system is not working for anyone.
“It is not working for people who need support, it’s not working to get people into work so that more people can fulfil their potential, and it’s not working for the taxpayer when the bill for welfare is going up by billions of pounds in the next few years.
“So, we do need to get a grip. We need to spend more on national defence, but we need to reform our public services, and we need to reform our broken welfare system.”
The PM is said to have allowed Tuesday’s Cabinet meeting to run longer than scheduled because concerns from ministers were so intense.
Backbench Labour MPs have also voiced opposition to the proposals to overhaul the welfare system, which are due to be unveiled next week.
Ministers are hoping to reduce the soaring number of working-age people claiming benefits and encourage them into work to help grow the economy.
The Prime Minister yesterday insisted that the existing system could not be justified on “moral” or “economic” terms.
Sir Keir denied Britain would be “returning to austerity” under the changes but said the cost of benefits was “going through the roof” and on track to surpass the bill for the Home Office and prisons combined.