Minister vows ‘life on sickness benefits to end’ for millions as Labour looks to stave off rebellion over welfare cuts

Millions of people will be prevented from signing off work and living off sickness benefits indefinitely, Cabinet minister Pat McFadden has warned ahead of major welfare reforms to be announced on Tuesday.

Issuing a stern message ahead of the work and pensions secretary’s statement in the Commons, Mr McFadden - seen by many as Keir Starmer’s de facto deputy prime minister - said the government was determined to make the welfare state “fit for the 21st century”.

He vowed to see off rebel Labour MPs opposed to benefits cuts and rejected calls for the new measures to be replaced by a wealth tax.

“We cannot sit back and relax while millions, literally millions of people go on to these benefits with little or no hope of work in the future. We have a duty to face up to that”, the Chancellor of the Duchy of Lancaster told BBC Radio 4’s Today programme.

Asked if some people on benefits would see their payments cut, he said more individuals would have their welfare payments periodically reviewed.

“Re-assessment is going to part of the announcement of conditions because we do not believe every time someone is signed off sick that it is a permanent condition that lasts for ever”, he said.

“In some cases it will be and the system should always be there for people who need help. But some conditions won’t be permanent”, he said, arguing it is right to ask whether individuals would benefit from support to get them back into work.”

Mr McFadden continued: “What we won’t do is sit back and relax and pretend it is a progressive thing to do to watch two million, then three million, then four million people go on to these benefits - many of them never working [again].”

Responding to Unite boss Sharon Graham, who accused the government of “pitting the poorest against the poorest while the wealthiest go untouched”, Mr McFadden said: “The top one per cent pay about one third of tax. In the end you cannot tax and borrow your way out of the need to reform the state.”

He also slapped down Labour MPs threatening to revolt over the welfare changes, saying the party had made it clear in its election manifesto that it would carry out major reforms.

The minister insisted the plans being unveiled on Tuesday were “entirely in line with the values of the Labour Party”.

Last week, Nadia Whittome, leftwing MP for Nottingham East, told BBC Radio 4’s Today Programme that she “couldn’t look her mum in the eyes” if she voted for the proposals which would save an estimated £5 billion.

Meanwhile, Diane Abbott warned reducing benefits is “not a Labour thing to do”.

But the government has insisted that there is a “moral case” for implementing the package of welfare cuts, which are designed to save between £5bn and £6bn.

Ministers insist that reform is necessary, given the number of people in England and Wales claiming either sickness or disability benefit has soared from 2.8 million to about 4.0 million since 2019.

The benefits bill has risen with this increase, reaching £48bn in 2023-24, and is forecast to continue rising to £67bn in 2029-30.

Ms Kendall is set to abolish the “work capability assessment” for universal credit, which is used to determine eligibility for incapacity benefit payments for those with illnesses or disability who have limited ability to find a job.

She is also expected to cut the top rate of universal credit incapacity benefit, which, according to The Times, would be partially offset by an increase to the basic rate and £1bn pumped into support schemes to help claimants get into work.

The most controversial element of the package could be changes to the personal independence payment (PIP) – a benefit aimed at helping the disabled with the increased cost of living associated with their conditions.

The government is thought to have shifted away from rumoured plans to freeze PIP, meaning a real-terms cut by not increasing the payments in line with inflation, but reports have indicated they will be harder to qualify for in future.

That could include more frequent reassessments for both PIP and incapacity benefits to determine whether the payments are maintained.