PRIME MINISTER Keir Starmer will on Monday set out a new attempt to reform the social security system after MPs in his party blocked reforms proposed last summer.
Extracts of his speech, released by his office, come days after last week’s budget, which proposed higher taxes to fund measures aimed at addressing the cost-of-living crisis.
The budget was received steadily by the markets but drew sharp criticism from the Conservative opposition.
The Conservatives have accused chancellor Rachel Reeves of misrepresenting the state of public finances ahead of the budget, an accusation she denied in interviews on Sunday.
Opinion polls indicate that Labour is struggling on several issues, including claims that it has not promoted growth effectively.
Starmer will speak on Monday to defend the government’s economic approach and revisit social security reform.
“We have to confront the reality that our welfare state is trapping people, not just in poverty, but out of work,” Starmer will argue in his speech.
He will say the government plans to invest in apprenticeships for young people, adding: “We must also reform the welfare state itself.”
Britain has a record number of young people on long-term sickness leave and out of the job market.
“If you are simply written off because you're neurodivergent or disabled, then it can trap you in a cycle of worklessness and dependency for decades,” Starmer will argue.
That, he will say, “costs the country money, is bad for our productivity, but most importantly of all — costs the country opportunity and potential.”
On the welfare system, Starmer added: “We need to remove the incentives which hold back the potential of our young people.”
Starmer is also expected to outline plans to ease regulations on businesses.
During the summer, the government withdrew earlier proposed social security reforms — including cuts to disability and sickness benefits — after more than 120 of its MPs rebelled.
Many Labour MPs have since raised concerns about a disconnect between Starmer’s leadership, focused on countering the rise of Reform UK, and the party’s traditional centre-left principles.
(With inputs from agencies)
