Labour ministers could resign over benefits cuts as tensions grow

Rachel Reeves has been warned that some ministers may still resign over her proposed welfare reforms, with expected spending cuts in next week’s Spring Statement likely to fuel further discontent. Labour is facing growing internal divisions over the planned £5bn in welfare reductions, while the Chancellor is set to announce additional spending cuts, which her allies insist do not amount to austerity.

A government minister indicated that some frontbenchers are already considering stepping down due to the proposed benefit cuts. If Reeves moves forward with reducing overall funding for Whitehall departments, the situation could escalate. They warned that the current welfare reform package may not remain unchanged, as opposition within the party continues to build.

This unrest could lead to resignations among frontbenchers who may choose to vote against the proposed benefit changes in Parliament. While earlier threats of ministerial resignations over the reforms have not yet materialized, concerns remain that the issue is far from settled.

Next week’s Spring Statement will be accompanied by impact assessments detailing the number of people affected by the tightening of eligibility criteria for Personal Independence Payments (PIP), a change that has already angered many MPs.

On Thursday, signs of increasing dissatisfaction emerged as Blackpool South MP Chris Webb, a newly elected member not known for causing trouble, voiced “serious concerns” about the PIP changes and vowed to oppose them in Parliament.

“These cuts could leave between 800,000 and 1.2 million people losing between £4,000 and £6,000 annually—a devastating impact on many of my constituents who are already struggling,” Webb stated.

He warned that reducing support for the most vulnerable would push more people into poverty and worsen the hardships faced by disabled individuals in Blackpool. He reaffirmed his commitment to opposing policies that would make his constituents poorer, arguing that alternative measures should be considered.

Webb proposed a “modest” 2 percent tax on wealth exceeding £10m, which would impact only the wealthiest 0.04 percent of the population while generating £22bn in revenue. “This is the kind of reform we need—one that protects the vulnerable instead of punishing them,” he said.

He also referenced a meeting with Work and Pensions Secretary Liz Kendall, which some attendees reportedly described as “terrible.” Webb noted that he had raised his concerns with Kendall and planned further discussions with her.

Meanwhile, Chief Secretary to the Treasury Darren Jones suggested that the Chancellor is likely to reduce the overall spending budget for Whitehall, confirming that “budgets will be going down in terms of the annual rate of growth.” However, he rejected the idea that these measures amount to austerity, arguing that modernizing reforms—such as utilizing AI to improve efficiency in public services—will help cut costs without reducing effectiveness.

The proposed cuts have already sparked frustration within Labour’s left wing, with MP Ian Byrne criticizing the approach, saying, “Insanity is doing the same thing over and over again and expecting different results.”