Starmer’s Benefit Cuts: A Missed Opportunity

 

Starmer is pushing forward with plans to slash welfare spending by billions of pounds, targeting some of the most vulnerable segments of society. These cuts, set to be detailed in a forthcoming green paper on sickness and disability benefits, aim to address what Starmer has called an “unsustainable, indefensible, and unfair” benefits system. With welfare costs projected to balloon to £378 billion by the end of the decade, the government is targeting £6 billion in savings over the next few years, primarily through reductions to disability and incapacity benefits. 

 

However, critics argue that these savings pale in comparison to the funds squandered on the so-called "net zero scam" and the subsidies handed out to green grifters —money that could more than cover the proposed cuts while sparing the vulnerable.

 

The Cuts: What’s on the Table?

The centrepiece of Starmer’s welfare reform is a £6 billion reduction package, with approximately £5 billion of that targeting Personal Independence Payment (PIP), the primary disability benefit for working-age adults. PIP, which helps cover extra living costs for those with disabilities or long-term health conditions, has seen its annual cost rise from £14 billion pre-pandemic to £22 billion today, with forecasts predicting a jump to £34 billion by 2030. To curb this growth, the government is considering several measures:

 

1. Freezing PIP Payments: Rather than adjusting payments in line with inflation—a practice avoided even by austerity-era Chancellor George Osborne—the government may freeze the uprating of PIP awards, effectively reducing their real value as living costs rise.
2. Tightening Eligibility: Stricter criteria for qualifying for PIP are under review, potentially cutting off support for hundreds of thousands of claimants. This could include making PIP conditional for younger claimants (aged 16-30), as suggested by the centre-right think tank Policy Exchange.
3. Cuts to Incapacity Benefits: For those deemed unfit for work due to long-term sickness, the highest tiers of incapacity benefits could be reduced, with an emphasis on pushing claimants to prepare for employment.
4. Universal Credit Adjustments: Additional reductions are proposed for disabled recipients of Universal Credit, further squeezing support for those out of work.

Beyond disability benefits, the remaining £1 billion in savings is expected to come from targeting young people not in education, employment, or training (NEETs), redirecting them away from benefits and into work or education programs. Labour has already committed to cutting £3 billion from welfare over three years, but these new measures signal a deeper and broader assault on the system.

 

Expected Cost Savings

The government’s rationale is clear: with welfare spending for working-age adults on health-related benefits projected to hit £70 billion by 2030, and economic inactivity at a near-record 2.8 million, Starmer and Chancellor Rachel Reeves argue that these cuts are necessary to meet fiscal rules and reduce public borrowing. The £6 billion in savings—£5 billion from PIP and related disability benefits, plus £1 billion from NEETs and other out-of-work benefits—is intended to be locked in before the spring statement on March 26, 2025, allowing the Office for Budget Responsibility to factor them into economic forecasts. Reeves has emphasised that the current trajectory, with 1,000 new PIP claimants daily, is “unsustainable,” framing the cuts as a way to stabilise public finances while encouraging work among those who can.

 

Impacts on People

The human cost of these cuts could be profound, particularly for disabled and chronically ill individuals who rely on PIP and incapacity benefits to survive. Disability and poverty charities have warned that freezing or reducing PIP could push an additional 700,000 disabled households into poverty, exacerbating an already dire situation where 60% of claimants report struggling to make ends meet. Life costs more for disabled people—estimated at an extra £12,000 per year on average—and slashing benefits risks deepening financial hardship, worsening health outcomes, and increasing social exclusion.

 

For the long-term sick, the push to “prepare for work” ignores the reality that many face insurmountable barriers to employment, from inadequate healthcare to a lack of suitable job opportunities. Critics, including Labour MPs and disability advocates, argue that the cuts reflect a flawed “medical model” of disability, treating claimants as economic units rather than people with complex needs. The ripple effects could also strain families, carers, and local services, as reduced support forces communities to pick up the slack.

 

Young people targeted in the NEET cuts may face a mixed fate. While some could benefit from job training, others risk losing a vital safety net without viable alternatives, especially in an economy still grappling with post-pandemic stagnation. Starmer’s promise of “dignity in work” rings hollow for those who see these reforms as punitive rather than supportive.

 

The Net Zero Alternative: A Missed Opportunity

While Starmer justifies these cuts as fiscal necessity, a glaring alternative looms large: redirecting the billions poured into the net zero agenda and its associated subsidies. Labour’s green energy policies, including £12 billion annually in subsidies—equating to £450 per household—are propping up a system that critics label a “scam,” benefiting wealthy green industrialists such as Dale Vince, the founder of Ecotricity and a major Labour donor.

 

Vince, who has donated millions to Labour since Starmer took leadership, exemplifies the cosy relationship between the party and green profiteers. His company, Ecotricity, received £123 million in government grants in the year ending April 2023, ostensibly to cap energy prices, alongside a £15 million pandemic-era loan and £309,000 in furlough funds—all while raking in £38 million in profit on £550 million in turnover. Yet, despite claiming to “neutralise” fossil fuel gas with carbon credits, Ecotricity’s green credentials have been questioned, with 99% of its gas supply still derived from fossil fuels and no active carbon credits currently listed.

 

The £12 billion annual cost of green subsidies dwarfs the £6 billion Starmer seeks from welfare cuts. Scrapping these payments entirely would not only cover the proposed savings but leave £6 billion to spare—enough to bolster the NHS, reverse pensioner fuel payment cuts, or invest in genuine job creation. Even halving the subsidies would free up more than enough to avoid slashing benefits, exposing the government’s priorities as misaligned. The net zero push, critics argue, delivers negligible environmental gains while funnelling public money to corporate allies, all under the guise of climate action.

 

Conclusion: A Choice of Values

Starmer’s benefit cuts represent a calculated gamble: stabilise the books by targeting the vulnerable, while preserving a costly green agenda that enriches the likes of Dale Vince. 

 

The £6 billion in savings will come at a steep human cost, risking poverty, despair, and rebellion within Labour’s own ranks. Yet, the government could easily sidestep this pain by dismantling the net zero subsidy racket—a move that would more than cover the cuts and expose the folly of prioritising ideological projects over people. 

 

As the spring statement looms, the question remains: will Starmer choose fiscal prudence through compassion, or continue down a path that punishes the needy to appease the greedy? The answer will define his premiership—and Labour’s soul.