Economic conditions & trends

UK: No 10 Meets With All Labour MPs Over Welfare Cuts

Published MAR 13 2025

Story

Above: The black door at 10 Downing Street, in London, United Kingdom, on Jan. 15, 2025. Image credit: Seiya Tanase/NurPhoto via Getty Images

The Facts

10 Downing Street conducted meetings with all 404 Labour MPs on Wednesday and Thursday concerning the UK government's plans to cut state welfare. Meetings were reportedly led by No. 10 political director Claire Reynolds and held with groups of 40 MPs in 45-minute slots.
Sky News
Politics Home
Prime Minister Sir Keir Starmer has described the current welfare system as "indefensible, economically and morally," as it was reported last week by the BBC that the government sought billions in cuts to welfare spending amid fears of diminished fiscal headroom.
parliament.uk
BBC News
Multiple Labour MPs have publicly opposed potential cuts to disability benefits, and are instead calling for a wealth tax on high earners. At PMQs, Starmer claimed that while money had been raised via policies such as energy profit levies and taxing non-doms, this was "not a bottomless pit."
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parliament.uk
During an internal meeting with Labour MPs on Monday evening, Starmer reportedly told his party that the system currently "runs contrary to those deep British values that if you can work, you should. And if you want to work, the government should support you, not stop you."
Politics Home
As of October 2024, the Office for Budget Responsibility (OBR) estimated that total spending on health and disability benefits would rise from £64.7B in 2023-24 to £100.7B in 2029-30. Data shows the UK employment rate at 74.9%, while unemployment among over 16s is at 4.4%.
obr.uk
ONS
At the time of Chancellor Rachel Reeves's budget, the OBR estimated the government to have £9.9B in fiscal headroom over the current parliamentary term. The OBR will make an updated statement on March 26.
obr.uk
Office for Budget Responsibility

Sources Split

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RIGHT

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The Spin

Left narrative

Cutting welfare is not the answer to the government's continuing challenges. Instead, Labour should focus on raising taxes on the wealthiest individuals and corporations who can afford to contribute more. Amid escalating defense costs and a global crisis, the burden should not fall on the most vulnerable. Slashing welfare only deepens inequality, while taxing the richest would ensure a fairer distribution of resources and help fund necessary national security measures without punishing those already struggling.

The New European

Right narrative

Labour backbenchers may whine, but rising welfare costs — especially in health-related benefits — are unsustainable and divert funds from essential areas like defense. Reforming the disability benefits system, ensuring better support for work transitions, and addressing long-term inefficiencies will foster self-sufficiency and reduce dependency. Strategic cuts are necessary to maintain a balanced budget and ensure resources are allocated where they’re most needed.