Good evening! This week's edition of the In Common newsletter comes from Kaitlin Dryburgh, the policy and communication director at Common Weal.
OKAY, Starmer, what have you got for us today? The benefits system is the “worst of all worlds”?
Yes! Okay, Keir, I like where your head’s at — the benefits system is broken. It’s inadequate, confusing, slow, and riddled with traps that rob people of the money they require. I knew it was about time we agreed on something. Good to see Keir not masquerading as a right-wing Conservative for once.
Oh, wait, that’s not what he meant. Silly me. I should have realised he was talking about disabled people. Because, naturally, when considering the aspects of society that need fixing—improving the labour market, creating a fair benefits system, and ensuring work pays—the obvious solution is … cutting disability benefits.
For God’s sake, Keir, really? How do you get through these speeches without either laughing or collapsing into a ball of shame? “This is the Labour Party,” he proclaims. “We believe in the dignity of every worker.” I take issue with both of those statements.
This is their grand strategy to save some money and get more people into work — announcing up to £6 billion in welfare cuts. One of the first casualties in this madness? Personal Independence Payment (PIP), a benefit designed to help cover the extra costs of being disabled. A benefit that has nothing to do with employment status. In fact, it can help disabled people stay in work. So when Starmer claims these cuts are about getting people back into employment and “making work pay”, I struggle to see how slashing PIP achieves that.
After making it harder to qualify for PIP and freezing payments, the next move is a shake-up of Universal Credit. There will be an increase in payments for those actively seeking work and a reduction for those deemed unfit to work.
Now, this is political genius. At a time when Starmer is panicking about Reform UK, this is a slam-dunk. What’s not to love? We’ve oversimplified a complex issue, handed the media a convenient scapegoat, and reinforced the tired old stereotype of the lazy millennial, lounging at home, watching TV and pretending to have a mental health issue instead of getting a job. Throw in an avocado toast addiction for good measure and the stereotype is complete.
These cuts follow his already unpopular reduction of the Winter Fuel Allowance – yet another attack on a vulnerable group. The consequences? More people plunged into poverty and debt. For many disabled people, PIP is a lifeline. And let’s not forget that the number of working-age disabled adults in employment has actually risen in recent years.
Cuts to welfare have consistently failed to encourage people back into work. There are far better ways to achieve that – such as fixing the NHS so people aren’t stuck on endless waiting lists. Or addressing benefit traps, where people are financially better off staying in a lower-paying job with benefits than accepting a promotion they would otherwise want to take. Or fighting back against the corporate junk food which is causing so much ill health and disability in the first place.
Starmer’s contempt for those on benefits is fuelled by the same tired stereotype of the work-shy scrounger. In reality, the overwhelming majority of claimants are rightly receiving support and doing their best. Most people want to work and strive for financial independence. And as history has shown time and again, the carrot is far more effective than the stick.
Without bold, radical thinking, we remain stuck in the same cycle – with a broken system that punishes the most vulnerable while failing to address the root causes of poverty.
One of the simplest solutions to these systemic issues? Universal Basic Income (UBI). Its simplicity provides financial security, alleviates poverty, and helps those just above the benefit threshold improve their lives. Despite common misconceptions, UBI does not breed laziness. A US study found that almost all participants used the money on essentials or to better their circumstances.
Some might ask, “Why should middle- or upper-class households receive UBI?” Well, they already receive benefits – just in the form of tax reliefs and loopholes, many of which are inaccessible to lower-income individuals. But probably the point that might swing it for the likes of Keir, a very basic UBI would cost less than what we are already doing.
The UK welfare system is a big clunky monster and what it delivers is fairly sub-par for the amount we pour into it. It pays out a pittance that allows employers to exploit low-paid workers as they know the safety net waiting for them isn’t all that strong. Our welfare system does not stop poverty, it can at times exacerbate it, and that is a sobering truth. A 2024 research paper found that a UBI is sufficient enough to eliminate poverty and in some cases would in fact cost less than the poverty it eliminated.
The welfare system needs to be simplified, made fairer, and restructured to lift people out of poverty. For too long, those who rely on it have been treated as second-class citizens. It’s time to change that.
