Government ‘have not properly taken into account’ impacts of welfare reforms, former shadow chancellor tells LBC
10 May 2025, 00:19
Former Labour Shadow Chancellor John Mcdonnell MP has told LBC that the government’s welfare reform plans may not have been properly thought out.
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Former Labour heavyweight John Mcdonnell has told LBC’s Tom Swarbrick of his concerns about the government’s welfare reform plans.
The planned reforms, which are supposed to bring more people into work while cutting welfare by £5 billion, have incited a rebellion among Labour MPs.
Among the most significant moves is the tightening of eligibility for personal independence payments (Pip), a benefit aimed at helping those with disability or long-term illness with increased living costs.
Hundreds of thousands of people are expected to be affected by the changes to Pip eligibility, which are expected to account for the largest proportion of savings the Government hopes to make.
But the former Shadow Chancellor has now said the government might have underestimated the impact of the cuts.
“On the figures the government put out, it's not just people with disabilities and sickness who are losing benefits, but the 150,000 unpaid carers will lose access to carers allowance as well,” he told Tom Swarbrick.
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“So there's a whole range of real impacts that the government, I don't think, have really properly taken into account.”
John McDonnell is one of the party MPs that reportedly signed a private letter to Downing Street raising concerns about the cuts.
He said: “The reason Labour MPs are writing these letters, it's not because people don't think there should be reform of welfare and helping people get back into work.
“But the government is saying they'll put in place the mechanisms to support people to get employment, but at the same time, we won't know how those mechanisms will work or when they're going to be assessed until the Autumn.”
The signatories of the letter are reportedly claiming the full effect of the cuts won’t become clear until after MPs have to vote on the reforms.
He continued: “A lot of people are saying, why are you getting us to vote for cuts in benefits on the basis that people will be able to go back to work with support when you haven't put that in place and you seem to have got this whole decision making process the wrong way around?
“I think that's causing a lot of anxiety. There's an argument, can the government just rethink this and start looking at the real design of a way forward?”
The Independent MP for Hayes and Harlington said the government needs to rethink the plans, or else people in need of the benefits might suffer.
“The way the government is putting forward the proposals, it means that a large number of people who qualify at the moment, who really need the support – remember the personal independence payment is to help you overcome some of the disabilities that you have,” he said.
“And if you undermine that, people will suffer. But in addition to that, it undermines the ability of some people actually going into work as well. They need to have a rethink.”
He compared the cuts to the process the Conservative government initiated when reforming the Disability Living Allowance to the Personal Independence Payment.
He said: “When the Conservatives did this process, if you remember Disability Living Allowance, they went through a very, very similar process to this. And if you look at the figures, unfortunately, it caused such untold suffering.
“And if you look at the recent figures, (last time under the Conservatives). 600 people died as a result. A lot of that was suicide.
“So I'm really worried, I'm really anxious about the whole thing.”
MPs are expected to vote on the reforms next month, but it currently seems Starmer might face a rebellion from his party over the controversial cuts.
