OPINION
Liz Kendall was right to reduce the benefits bill (Image: Getty Images)
This Labour government appears to be stuffed full of MPs who lack a basic grasp of numbers. Maybe they failed their Maths GCSE or simply do not understand the simple concept that if you continually spend more than you have, then you create a financial crisis. And as usual, it would be the already stretched taxpayer who would pay the price due to a catastrophic mismanagement of the country’s finances.
Last week’s rebellion by Labour MPs against their own government over welfare reforms revealed that some really do believe there is a magic money tree that can be shaken on demand whenever cash is needed. Work and Pensions Secretary Liz Kendall was right to try and reduce the benefits bill even if it meant taking her Chancellor colleague to the brink.
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The reforms aimed to save £5billion overall – a mere drop in the ocean in the great scheme of things because the figures involved are truly eye-watering. As a nation, we currently spend £65billion a year on health and disability-related benefits. The Office for Budget Responsibility says this will rise to just over £100billion a year by 2029/2030.
This is unsustainable and risks bankrupting the nation.
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Initially, around 120 Labour MPs were due to rebel against the Government’s welfare reforms, but this was reduced to 49 after a screeching U-turn that saw many of the proposals scrapped or diluted. Rebels managed to force Starmer and co to amend the Universal Credit and Personal Independence Payments (PIP) Bill which was designed to limit eligibility for these benefits and therefore save cash.
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The Bill went to the vote with the entire section on PIP removed and planned cuts halted until a review is published in autumn 2026. This is not just kicking the can down the road but belting it beyond the boundary.
And whilst Keir Starmer licks his wounds following the biggest rebellion in only his first year in Downing Streety despite a whopping parliamentary majority, the welfare costs continue to rocket.
It is no wonder that certain Labour MPs were against the reforms: the number of people in their constituencies on some form of health or disability benefit eclipses the majority they won the vote by in their patch. These MPs would have been petrified about losing their job at the next general election should these cuts have been voted through.
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Regardless, we cannot continue at the rate we are when it comes to the growing number of people receiving health and disability-related benefits. If that sounds harsh, then look at the recently launched ‘benefits dashboard’ by the TaxPayers’ Alliance campaigning group. This excellent tool, highlighted by Conservative leader Kemi Badenoch during the parliamentary debate on the welfare bill, reveals how many people are claiming per local area and for what.
The website can be found at benefitsdata.uk but, warning: you might want to pour yourself a stiff drink before looking. The findings reveal that adults in England are receiving the enhanced mobility section of PIP for conditions such as food intolerance, acne, writer’s cramp, alcohol and drug use.
A total of 1.75 million people in England received enhanced PIP in April 2025 – an increase of just over 734,000 people from January 2019. The biggest increases were for autism, anxiety and depression.
Those who get this part of PIP can use their benefits to receive a free car through the Motability Scheme. The idea that someone with acne or writer's cramp can get a taxpayer-funded car is ludicrous.
It is only right that as a country we look after the most needy and vulnerable in society, but the current benefits system seems to go way beyond this. We cannot afford it anymore.
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The options for the Chancellor are limited. She has already said she will not increase taxes though I think her Budget in November will see another U-turn on this.
If we continue to borrow more money to fund our spending on health and disability benefits, plus other areas, our debt to GDP ratio could exceed 100%. This would damage our credit rating and make borrowing more expensive.
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The key lies in reforming the current system that awards health and disability-related benefits beyond tinkering around the edges. The Conservatives voted against the welfare bill on the basis that it was so watered down it would achieve nothing and rightly so.
The Labour rebels who extracted their concessions from the original proposals are living in cloud cuckoo land. If they think we can continue at this rate, then they will be guilty of trashing this country’s finances.
The ticking of the debt timebomb has just got louder.