Starmer’s benefits U-turns will cost £4.5bn, warns influential think-tank
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What Starmer’s benefits backdowns will cost the UK
- Sir Keir Starmer's recent U-turns on welfare and winter fuel payments have created a £4.5 billion deficit in public finances, necessitating tax increases or spending cuts.
- The decision to protect all existing Personal Independence Payment (Pip) recipients and those receiving the health element of Universal Credit will cost an estimated £3.2 billion annually.
- This financial shortfall is compounded by the £1.3 billion decision to reinstate winter fuel payments for pensioners, making the chancellor's autumn Budget balancing act more challenging.
- The concessions were made to appease Labour MPs and prevent a humiliating defeat on the controversial welfare bill, which faced strong opposition.
- Critics warn that the changes could lead to a 'two-tier system' for Pip claimants, where new and existing recipients face different eligibility criteria.