SNP calls for '11th-hour U-turn’ from Sir Keir Starmer on ‘shameful’ benefit cuts

Prime Minister Sir Keir Starmer has been urged to perform an “11th-hour U-turn” on reports that he plans to slash billions from the welfare budget.

The SNP warned that any “return to austerity will haunt the Labour Party for the rest of its time in government”.

Work and Pensions Secretary Liz Kendall is expected to set out plans for reform on Tuesday in an effort to get more people back to work and cut the cost of a benefits bill described by ministers as “unsustainable”.

Downing Street has insisted there is a “moral need” to overhaul the benefit system, but the move has prompted a backlash within Labour amid reports the announcement could include cuts to disability benefits.

Kirsty Blackman, the SNP’s work and pensions spokesperson at Westminster, urged the UK government not to go ahead with any welfare cuts.

She said: “Keir Starmer must do the right thing and abandon the Labour Party’s cuts to disabled people.

“There is still time for the Prime Minister to perform an 11th-hour U-turn, and scrap these shameful cuts, before it’s too late.

“Otherwise, this return to austerity will haunt the Labour Party for the rest of its time in government.

“Voters were promised that there would be no austerity cuts but the Labour Party has slashed the winter fuel payment, cut international aid, blocked compensation for Waspi women – and now it is threatening to take an axe to disability benefits and public services too.

“Ploughing ahead with these devastating cuts would be the ultimate betrayal of the promises made to voters. It would take vital support away from some of the most vulnerable people in society, and it must not go ahead.”

On Monday, John Swinney urged the Prime Minister to “think again” and abandon cuts that would “punish” the most vulnerable people in the UK.

The First Minister said: “I’ve seen a lot of speculation. I don’t like the look of the speculation that I’m seeing because I think that has the potential to have an effect on the resources that we have available to invest in social security.”

He added: “What I would say in general is that, at this particular moment in time, I don’t think that the right thing to do is to punish those who face vulnerability in our society by the type of cuts that have been talked about by the UK Government.

“I would encourage the UK Government to think again.”

The scale of the backlash is thought to have prompted a rethink of rumoured plans to freeze the level of personal independence payment (PIP) rather than increase it in line with inflation, delivering a real-terms cut to 3.6 million claimants.

But other backbenchers have expressed anger that proposals such as the Pip freeze had leaked out, suggesting this had been done in “bad faith” before anything had been agreed by Ms Kendall and the Treasury.

A spokesperson for the Department for Work and Pensions said: “We have been clear that the current welfare system is broken and needs reform, so it is fairer on the taxpayer and helps long-term sick and disabled people who can work to find employment, whilst ensuring it provides support for those who need it most.”

Speaking on Monday, the Prime Minister’s official spokesman told reporters Sir Keir Starmer “has been clear there is both a moral and an economic case for fixing our broken social security system that’s holding our people back, and our country back”.

He added: “That is why tomorrow the Government will set out plans to overhaul the health and disability benefits system so it supports those who can work to do so, while protecting those who are most in need, and put the welfare system back on a more sustainable path.”

Asked if the reforms were being carried out because of the UK’s fiscal backdrop, the spokesman replied: “No, I think when you look at the fact that we have the highest level of working-age inactivity due to ill health in western Europe, we’re the only major economy whose employment rate hasn’t recovered since the pandemic, there is a duty to fix the broken system that is letting millions of people in this country down.”

It is unclear what benefits will be targeted, and how significant any cuts will be for Scotland. One proposal reportedly under consideration is to save £5 billion by tightening the rules around the personal independence payment (PIP), a measure that was replaced by the Adult Disability Payment (ADP) in Scotland. While the responsibility for delivering it is devolved, any funding cut could see less money for Scotland, though not necessarily from the ADP budget.

When the UK Government’s projected spending on PIP falls, so does the amount transferred to the Scottish Government, so it would be for them to decide how to respond. On Sunday IPPR Scotland warned cuts to PIP would impact Scotland more severely due to its higher caseload of recipients of disability and incapacity benefits.

Another area being looked at is Universal Credit, which is a reserved benefit administered by the UK Government. However, the Scottish Parliament does have some powers over how it's paid.

The plans have proved highly controversial, with Downing Street inviting Labour MPs for meetings all last week in a bid to ease concerns. Several Scottish Labour MPs are believed to be uneasy about the plans, but keen for more detail.

A green paper will be set out by Liz Kendall on Tuesday with her proposed plans.

The work and pensions secretary insisted treating people with dignity and respect is at the heart of the Government’s welfare plans.

In the House of Commons on Monday, Ms Kendall said: “This Government will ensure disabled people who can work have the same rights and chances to work as everybody else, because that principle of equality is what this Labour Government is for.”

Last week, a group of poverty and disability charities, including Disability Rights UK and the Trussell Trust, warned cuts to disability benefits could have a “catastrophic impact on disabled people up and down the country”.

Emma Reynolds, the economic secretary to the treasury, urged MPs to be “patient” amid mounting backbench discontent over the changes, accusing members of her party of “jumping to conclusions”.