Starmer axes fresh attempt to slash Britain's welfare bill for at least a year

The Department of Work and Pensions (DWP) has been told that it will not be given time in Parliament to reform the benefits system until next year at the earliest.

The need to cut Britain's welfare bill was acknowledged by both Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves in recent months.

But attempts to bring forward meaningful reforms have been scuppered by backbench rebellions led by the likes of Rachael Maskell, MP for York Central.

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Changes to disability and unemployment benefits were set to save the Exchequer up to £5 billion a year before they were severely watered down to avoid an embarrassing defeat in the Commons.

Earlier reports had suggested that Sir Keir and Pat McFadden were gearing up for a second attempt at pushing through large-scale reforms.

But The Times reports that attempts by the DWP to table legislation in the next parliamentary session as part of The King's Speech due in May have been unsuccessful.

This would mean that the Department would be very unlikely to pass any laws until mid-2027

The confirmation, reported in the Times, makes it unlikely that reforms will be implemented before the next general election.

Proponents of reforms have pointed to the fact that 23 per cent of the British working-age population is now in receipt of state support as a reason to push through legislation.

Two reviews into welfare in the UK are due to report this year, with new laws set to be recommended to clamp down on the bill.

One major issue which ministers are seeking to solve is the growing proportion of young people not in employment, education or training (Neets).

One proposal to tackle this, the so-called "unemployment insurance", has also been shelved despite being announced as part of piecemeal reforms last March.

The measure would have seen those who have left work recently receive uplifts in benefits by reallocating funds that are currently given to those who are signed off as long-term sick.

An unnamed minister told the Times: “Clearly any welfare reform is going to be very difficult with the back benches, and the closer you get to a general election, the less you want to do the difficult stuff.

“We’ve got to remember that largely the public wants to see welfare reform, and we do need to show delivery on that. This is not showing that reform is a priority.”

Another government source told the Times: “The message it sends is a bit silly politically. The King’s Speech is not totally prescriptive, but it makes it seem like we are making no plans to change anything for a year.”

Forecasts show the total cost of welfare payments rising by £35 billion by 2031 to reach more than £380 billion in total.

A Government spokesman said: “Final decisions on the contents of the King’s Speech have not been made.

“We’re already fixing the broken welfare system we inherited so we get Britain working … We have commissioned Alan Milburn to look at how we can tackle the number of young people out of work and will set out further legislative plans in due course.”