‘Welfare reform is not a betrayal of Labour values – it’s their fulfilment’

The creation of the modern welfare state by the 1945 Labour government remains one of the party’s proudest legacies. A system to support society’s most vulnerable is an enduring symbol of fairness, collective responsibility, and the belief that no one should be left behind.

In the aftermath of war, Labour didn’t just built institutions like the NHS and the welfare system. We enshrined at the very heart of the state the idea all should not just be protected from the material hardships but should be given true access of opportunity and the support they needed to make the most of their lives.

These were not mere policies. They were moral commitments, asserting that dignity, security, and agency should be the birthright of every citizen. But today, the welfare system faces urgent challenges. Economic inactivity is rising, with one in ten working age people now out of the labour market, millions locked out of work, and support systems too often unresponsive and inflexible.

This isn’t the result of some global trend: we are unique among G7 countries in facing this challenge. If we are to protect welfare system for the future and be true to its founding mission, this Labour government has a duty to reform it.

‘There is nothing compassionate about leaving people stuck on benefits’

The system today is failing at that most fundamental of tasks: to give disabled people and those with  health issues a pathway into employment and to help them succeed at work.

It is no accident that employment rates among disabled people are almost thirty percent below those of non-disabled people. It is no accident that unemployed disabled people are only a third as likely to flow into work in any given year as other workers. It is no accident only 0.9% of people on the UC health component (the LCWRA) find work each month. And it’s unfortunately no accident that almost forty percent of people on these benefits are stuck in poverty.

It is the result of a system that rigidly locks people out of work, penalising them for taking steps to get ahead, and which fails to offer them support. If we are to honour the spirit that gave birth to the welfare system, we must face these issues and tackle them head on.

READ MORE: Will winter fuel cuts rowback quieten welfare reform rebels – or embolden them?

There is nothing compassionate about leaving people stuck on benefits-and stuck in precarity, with no obvious pathway out. That is not what our communities aspire to, nor what the founders of the system envisaged. We should – must – demand more for our people.

Labour values are about supporting individuals to reach their potential. They are also about safeguarding the future of the system as a whole, so it can continue to look after the most vulnerable. We have a duty to make sure help is available today, tomorrow and into the future for all those who need it most.

‘Our system must offer protection, dignity and empowerment to the most vulnerable’

But the sad truth is that if the system remains on the current trajectory, we will not be able to guarantee that. Since the end of the COVID pandemic, the rate of increase in the number of people receiving welfare support has accelerated significantly. 34,000 additional people a month are receiving Personal Independence Payments (PIP), with the consequence that spend on them  has more than doubled in recent years. The levels of increased claimancy have far outstripped the increase in observed health conditions. This is not sustainable.

Our system must offer protection, dignity and empowerment to the most vulnerable. And it must take as a starting point the recognition that some people will never be able to work. But it’s exactly because these principles are so essential that PIP requires reform. In a world where one in four people now self-identify as disabled, we must change the system to ensure we can continue to offer the support they need to the most vulnerable. And we need to find a way of closing the disability employment gap for those who can work.

That’s why the £1bn of additional funding the Government has pledged to employment support and the introduction of measures like the ‘right to try’ are so important. They are the cornerstones of a system that will, for the first time, provide real support for those on the incapacity benefits who want to get back into a job. Programmes like Access to Work will help those with health conditions find and keep work. All of this will be underpinned by the Government’s New Deal for Working People, to improve the quality and security of work itself.

READ MORE: Welfare reform: List of Labour MPs prepared to rebel against benefit changes

‘We must take on the challenge of reform, not in spite of our values, but because of them’

Reform is hard and will involve difficult choices. But we cannot simply wish away the problems the system faces. We cannot try to avoid the issue by seeking refuge in impractical proposals which have never been successfully deployed in any country. To offer slogans rather than real solutions is to fail those who the need the system most.

We must take on the challenge of reform, not in spite of our Labour values, but because of them. Just as Attlee’s government reimagined the role of the state after the upheaval of war, so must we reimagine it after the upheavals of the pandemic, economic transition, and growing ill health. The world has changed. Our welfare system must too.

Our purpose must be not only to liberate people from want, but to provide the foundation from which they can shape their own destiny. We must reform the system to better support people into work where possible, and to guarantee strong, lasting protection for those who cannot. This is not a betrayal of Labour values. It is their fulfilment.

Subscribe here to our daily newsletter roundup of all things Labour – and follow us on  Bluesky, WhatsApp, Threads, X or Facebook.

• SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour– contact us (strictly anonymously if you wish) at [email protected].
• SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning.
• DONATE: If you value our work, please chip in a few pounds a week and become one of our supporters, helping sustain and expand our coverage.
• PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or projects, email [email protected].
• ADVERTISE: If your organisation would like to advertise or run sponsored pieces on LabourList‘s daily newsletter or website, contact our exclusive ad partners Total Politics at [email protected].