News

From The Observer

It’s time to end blame culture over benefits bill, says Labour minister

Exclusive: Work and pensions secretary Liz Kendall pledges to halt Tory ‘salami slicing’ of benefits, but Labour under fire for union pay deals

Michael Savage Policy editor

Sat 17 Aug 2024 19.00 BST

Share

Labour will end the blame culture aimed at people out of work and will not repeat the “salami slicing” of the benefits bill pursued by the Tories, the work and pensions secretary pledges today, as she warns that rising welfare spending is unsustainable.

In her first newspaper interview since taking the role, Liz Kendall told the Observer that a drastic overhaul was required to fix a “broken” back-to-work system, warning that the number of people who are economically inactive was now bigger than the population of London.

Describing her task as “one of the biggest challenges the country faces”, she said that she would be bringing in major reforms to a system that was failing too many of the near record 2.8 million people now out of work due to long-term sickness.

She accused a series of Conservative politicians of using anti-welfare rhetoric against people in need of help. Amid concerns within Labour that welfare will be squeezed as part of chancellor Rachel Reeves’s first budget this autumn, Kendall said she would not make reform “merely about cuts and blame”.

Citing large projected increases in welfare spending, she added: “I do not think it’s sustainable when you’re seeing those levels of increases, but we can do something about it.”

She criticised the previous government’s approach, which she described as “salami slicing cuts [and] divisive rhetoric that blames people and doesn’t support them.

“We’ve never seen more people written off. The last parliament was the worst for economic inactivity on record. It is for us to put this right. But we will need big reforms and big changes. I know people worry about this, but I want to say, we are on your side. We are not going to write you off and blame you. We take our responsibilities seriously. We’re going to bust a gut to give you the support you need to build a better life.”

Reeves has already made it clear that she will make “tough decisions” on welfare spending in the forthcoming budget, describing spending as “out of control”. Over the next six years, spending on incapacity and disability benefits for working age people is projected to rise to £63bn – a real-terms increase of almost 48%. However, some MPs are wary of any squeeze that would only save money in the short term.

Kendall repeatedly took aim at the rhetoric used by a series of Conservative figures. While former chancellor George Osborne talked about “shirkers”, Rishi Sunak denounced a “sicknote culture”. When he was work and pensions secretary, Mel Stride said some people did not work because they felt “down and bluesy”.



Chancellor of the exchequer Rachel Reeves will be making ‘tough decisions’ on welfare spending. 

“All of the talk about strivers versus scroungers or shirkers – I think the people who really shirk their responsibility were the people who last sat in this office because they wrote off millions of people who actually want to work,” Kendall said. “It matters deeply for individuals and their ability to have a decent life for themselves. It matters to our economy because it is the major thing holding back growth. But it also matters to the public finances as well.”

Plans to curb welfare spending come with the Tories criticising the government for reaching a series of pay deals designed to end strikes. A backdated pay offer for train drivers was announced last week: it followed the chancellor’s £9bn package to increase public sector pay and a major increase offered to junior doctors.

Stride said his party would “take no lectures from the government, who have failed at the first hurdle to signal that they will get a grip on welfare spending”.

“Labour have made their priorities clear – taxpayer-funded above-inflation pay rises demanded by their union paymasters and scrapping welfare reform that could save the taxpayer £12bn – all while axing winter fuel payments for pensioners. Without taking much-needed action to make the welfare bill sustainable, Labour will once again ramp up taxes.”


In a frank assessment of the challenge she faces, Kendall said she was “under no illusions” about the size of her task. She said the current system “is broken. It’s not working. But I know that our work coaches are full of passion and ideas about doing things differently.”

Kendall suggested there would be serious reforms to jobcentres, freeing them up from monitoring benefits and linking them with the NHS to help those struggling to work for health reasons. “We have got to put jobcentres back to where they were initially meant to be, which is a public employment service,” she said. “That isn’t how they are. Their overwhelming focus is on monitoring, assessing and policing benefits. We’ve got 16,000 work coaches and we want them to do what they say on the tin.”

She also committed to a review of universal credit, new plans to tackle economic inactivity led by local areas and mayors and a “youth guarantee” ensuring every 18-21-year-old could get training, an apprenticeship or support to find work. More details of her plans will be unveiled in a white paper in the autumn.

Kendall would not be drawn on whether she was pushing for the Treasury to end the two-child limit on benefits that most experts believe is a driving force behind child poverty. However, the Leicester West MP said that the government’s child poverty taskforce had met for the first time last week and that the issue was a priority.

“I have got one in three kids in Leicester growing up poor,” she said. “On one of my last visits to one of my primary schools, they’d had to go out to find a young boy who had not been at school. When they found him at home, all he had was a bowl of salad cream for breakfast. I know in my bones how appalling the situation is.

“I will only make a commitment when I know that we can deliver on it. The last Labour government did incredible things to tackle poverty, but it was so easily overturned by the Tories. We are determined that our strategy will not only take immediate action, but this time it will last.”

Biggest issue now is Labour making pip means tested - that wasn’t a question asked in the consultation so we haven’t had a chance to explain how bad an idea that would be (compared to the equally terrible voucher idea)

When will we get any more news 

I sent my 8 page paper to Caxton House and Mel Stride, It wont make much difference.

I am one of those participants who would  have completed the lengthy survey, downloaded as a copy!

Pip should be money only as we need the money to pay for taxi and for repairs voucher will not pay for taxi voucher is useless 

I used to work until my doctors said there was no way with my chronic fibromyalgia epilepsy and arthritis plus suffer from high anxiety, depression and ptsd my money gets used on my daily living expenses also a Motability scooter which is my lifeline i have to watch what i eat and i have multiple chemical sensitivities so i have to be careful with everything i eat or consume, my wet room is upstairs and i need to see about a stair lift , carer and a household help but you cant pay for people to come in with vouchers plus the extra heating in the winter the air in the summer, extra bill money food taxis when you need to get to an appointment in a hurry

Does anyone have any new information on this as I'm really scared and worried I'm going lose my pip cast payments for vouchers I rely on pip for my carer and a cleaner and other living costs this being stripped away I will fall down hard, I'm having sleepless nights over this I have dyspraxia, Asperger's, epilepsy and anxiety and trying not to make myself sick over this. Any reassurance or information is much appreciated. 🙏

They won't be changing to vouchers. Think of the additional administration costs for the govt and for retailers! This is a non-starter. Anyway, we already use a voucher of sorts, one issued by the govt redeemable with the govt against taxes which is what gives them their value. Money. 

I had Encephalitis when I was 23 months old leaving me with several problems although I look OK and sound OK.  People think I am about 16 years when I am actually 45. I use my PIP to pay for my carer who has been organised for me through the local council.  Are the DWP going to drag me in to get me to work (I can't of course). Please don't judge people, there are some who really need help and have done for years.

I have severe neck, shoulder and spine problems. Without pip I would be totally housebound as there is no way I could afford to get around. My mental health isn't good as the pain I'm in is traumatic.  So I would end up staying in all the time as I need to pay to get around. I am really anxious about these changes. Worse than when I had to do the work capability assessment. They always treat disabled people like we are a burden. It's like do u think I would be like this if I had a choice. And they talk about cutting back on money, have u seen how much these politicians spend on themselves and charge to the government,  remember that one guy who charged the government 40 pounds for a breakfast, and he bought expensive boxer shorts on tue governments money. Its such hypocrisy 

I have been claiming benefits since the age I was able to, I have very severe mental health due to past trauma and I also have learning disabilities, those who claim for no reasons should be the ones that pay not the ones that genuinely need the support. I tried working a few times before I actually claimed but I mentally couldn’t cope having intense anxiety attacks. If I was strong enough to I would do it but I’ve tried many times

I think you are spot on Pete.

I think it's likely something will come out of this consultation but it'll probably be that PIP will become harder to claim. I'll be honest, I think this is fair as people are claiming it without a formal diagnosis, normally anxiety and depression.

Maybe there could be some lower rate whilst people wait to see consultants etc. For the record I have both a serious physical condition and various mental health conditions I've been diagnosed with by consultants over the years. But the thing is, when I first began to suffer mental health problems years ago (suspected schizophrenia) I didn't claim DLA because it wasn't affecting me in that way. Maybe I did need it, I dunno but did end up claiming DLA ten years later. It just feels like some people are claiming PIP just because they can rather than whether they actually need it and this is perhaps partly what is driving the surge in claims.

I highly doubt vouchers will happen - it’s just too much of a bureaucratic nightmare and will end up costing money. It will engender a black market and there will be marches full of the wheelchair-bound and the elderly. Not a good look, even if this govt is heartless and no better than the last. There’s a good case for offering therapy and easier access to such for those who want it. Everything else is too blatantly cruel and/or infeasible. I will never vote Labour again. 

I filled in the response form. I stated what if treatment I needed, such as my osteopath didn’t take the vouchers.

I rely on my pip for my taxi from hospitals and home and also to help with every day living 

I rely on PIP to live and pay my bills, I have many unseen illnesses and I am have been medically retired due to them.

Those who seek financial improvement for disabled people on low income should press for the existing means tested benefits to be improved for all on low income as everyone on low income, irrespective of disability should receive a fair income.