The UK government's Labour Party has announced plans to reduce welfare costs rising since the Covid-19 pandemic while aiming to support employment and protect vulnerable populations. Chancellor Keir Starmer's administration confronts significant tensions within the party about making cuts that historically conflict with its commitment to the welfare state. With 9.3 million working-age individuals unemployed, and costs around sickness payments escalating to £65 billion, the government aims for £5 billion in savings by 2030, reflecting on the need for reform in an underfunded environment.
Britain's government faces the challenge of balancing welfare cuts while incentivizing work and protecting the vulnerable amidst rising costs since the Covid-19 pandemic.
The Labour Party, traditionally seen as the defender of the welfare state, is now tasked with implementing potentially unpopular cuts to address spiraling welfare spending.
Work and Pensions Secretary Liz Kendall emphasized the need for decisive action, proposing to cut welfare costs by £5 billion by 2030 while supporting those unable to work.
With over 9.3 million people of working age not employed, the government recognizes that without intervention, the number of long-term sickness claimants could exceed four million.
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