Benefits system ‘unsustainable, indefensible and unfair’, Keir Starmer tells Labour MPs

Benefits system ‘unsustainable, indefensible and unfair’, Keir Starmer tells Labour MPs

Britain’s benefits system is the “worst of all worlds”, with the numbers of people out of work or training “indefensible and unfair”, the prime minister has said.

Keir Starmer, addressing a private meeting of Labour MPs on Monday night, said the current system was “discouraging people from working”.

He noted that “one in eight young people” are not in education, employment or training, as he rued a “wasted generation”.

“The people who really need that safety net [are] still not always getting the dignity they deserve”, the prime minister added. 

“That’s unsustainable, it’s indefensible and it is unfair, people feel that in their bones. It runs contrary to deep British values that if you can work, you should.”

The comments come as Labour MPs privately voice their disquiet about plans by chancellor Rachel Reeves to slash benefits for the disabled and long-term sick in a bid to balance the books. 

The speech also came amid anger after the prime minister’s decision to increase defence spending to 2.5 per cent of GDP by 2027, by cutting the size of the international aid budget to 0.3 per cent of Gross National Income (GNI). 

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The prime minister said: “The real world is moving quickly and people look to their government not to be buffeted about by that change — not even to merely respond to it — but to seize it and shape it for the benefit of the British people.”

He added: “That is what everything this government does is about. That is how we are clearing the asylum backlog at record pace. 

“Cutting NHS waiting lists four months in a row — even in winter. Wages rising faster than prices. It’s about seizing the real challenges in front of us to deliver the security people in this country need.”

Commenting on recent geopolitical developments, the prime minister reflected on recent meetings with US president Donald Trump and Ukrainian president Volodymyr Zelenskyy. 

He repeated that his support for Ukraine is “unwavering”.

Starmer said: “And that is true on the world stage as well. That is why I visited president Trump to work together for the security of Ukraine, Europe and the UK. That is why I hosted president Zelenskyy and other world leaders here in London. 

“It’s why I have been clear that the security of Ukraine is the future of Europe and our support for Ukraine is unwavering.

“And that is also why, a couple of weeks ago, I announced the biggest sustained increase in defence spending since the Cold War. Not just to do our bit for the security of Europe but to secure the future for working people in this country.

“Our defence and the security of the British people must come first. The extra defence spending I announced last week will rebuild industry across the country. It will support businesses, it will provide good, secure jobs and skills for the next generation. That is what we owe the British people.”

Turning to the government’s widely trailed welfare reforms, Starmer warned MPs that if nothing is done, the cost of disability and sickness benefits for people of working age will rise to £70 billion annually by 2030.

He said: “We’ve found ourselves in a worst of all worlds situation — with the wrong incentives — discouraging people from working, the taxpayer funding a spiralling bill, £70 billion a year by 2030.

“A wasted generation. 1 in 8 young people not in education, employment or training and the people who really need that safety net [are] still not always getting the dignity they deserve.

“That’s unsustainable, it’s indefensible and it is unfair, people feel that in their bones. It 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.

“So, this needs to be our offer to people up and down the country: if you can work, we will make work pay. If you need help, that safety net will be there for you. But this is the Labour Party. We believe in the dignity of work and we believe in the dignity of every worker.

“Which is why I am not afraid to take the big decisions needed to return this country to their interests. 

“Whether that’s on welfare, immigration, our public services or our public finances. We can’t just shrug our shoulders and look away. We can’t just tinker around the edges. We won’t try and sow division or create distractions, we’ll roll up our sleeves, take responsibility and make the reforms needed to fix what is broken.”

Josh Self is Editor of Politics.co.uk, follow him on Bluesky here.

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Source: Politics