UK’s Starmer announces fresh social security reforms

LONDON: Britain’s Prime Minister Keir Starmer will on Monday announce a fresh bid to reform the country’s social security system after rebel MPs in his own party blocked reforms proposed last summer.

His speech, extracts of which have been released by his office, comes after last week’s budget proposed higher taxes to fund measures to tackle the cost-of-living crisis.

The budget, while fairly well received by the markets, was fiercely criticised by the Conservative opposition.

The Conservatives have accused finance minister Rachel Reeves of having misrepresented the state of the nation’s finances in the run-up to her budget, something she denied in interviews Sunday.

Opinion polls suggest that Britain’s Labour government is struggling over a number of issues, including its supposed failure to promote growth.

It is against this background that Starmer will speak on Monday to defend his government’s economic policy and return to the issue of social security reform.

“We have to confront the reality that our welfare state is trapping people, not just in poverty, but out of work,” Starmer will argue in a speech.

The government would invest in apprenticeships for young people, he will say, adding: “We must also reform the welfare state itself.”

Britain has a record number of young people – many of them young people – on long-term sickness leave and out of the job market.

“If you are simply written off because you’re neurodivergent or disabled, then it can trap you in a cycle of worklessness and dependency for decades,” Starmer will argue.

That, he will say, “costs the country money, is bad for our productivity, but most importantly of all – costs the country opportunity and potential.”

Referring to the welfare system, Starmer added: “We need to remove the incentives which hold back the potential of our young people.”

Starmer is also expected to announce measures to lighten regulations on business.

Over the summer, the government had to back down over earlier proposed social security reforms – including slashing disability and sickness benefits – after more than 120 of its own MPs rebelled.

Many of his own MPs have complained of a disconnect between Starmer’s leadership, which is focused on fighting the rise of the hard-right, anti-immigration Reform UK party, and Labour’s traditional centre-left principles.