Minister resolute on benefit cuts amid threats of Labour rebellion

May 15, 2025 11:40 AM
DWP
The Government has indicated it will not reverse recent cuts to benefits and winter fuel payments, despite growing opposition from Labour backbenchers.

The decision to limit winter fuel payments was one of several measures said to have influenced voters in the May local elections, where Reform UK gained numerous council seats from Labour and the Conservatives.

According to The Times, around 100 Labour MPs – over a quarter of the party’s parliamentary members – have reportedly signed a private letter urging ministers to reconsider proposed welfare cuts. This follows a similar letter last week from 42 MPs who described the cuts as “impossible to support.”

Under the Government’s plans, outlined in a March Green Paper, eligibility criteria for the Personal Independence Payment (PIP), a key disability benefit in England, would be tightened. The proposed changes could reduce benefits for approximately 800,000 people. Additionally, cuts are planned for the sickness-related element of Universal Credit.

Chancellor Rachel Reeves, responding to concerns during a visit to Rolls-Royce in Derby, acknowledged the ongoing cost-of-living crisis but emphasized the Government’s efforts to support pensioners.

“We increased both the basic and new state pensions last month – with the new state pension rising by £470, well above inflation,” she said. “But we understand the need to bring down energy bills, which is why we are investing in Britain’s energy security to lower costs for working people and pensioners.”

Treasury minister Emma Reynolds, speaking on Good Morning Britain, maintained that the Government would not alter its course despite potential backlash.

“The Government has set out our plans and we will continue discussions with backbenchers,” she said. “We have a significant majority, but it’s crucial to keep these sensitive conversations ongoing.”

Reynolds added that those with lifelong or deteriorating health conditions would no longer be subject to reassessments, a move she said would “recognise the dignity of those people.”

She acknowledged the situation as “very tricky and sensitive,” but insisted that ministers would remain in dialogue with Labour MPs as part of broader efforts to reform the welfare system and stimulate economic growth.