Britain’s Prime Minister Keir Starmer is set to unveil new social security reforms on Monday, following strong opposition from rebel MPs who blocked similar measures last summer.
The announcement comes in the wake of last week’s budget, which proposed higher taxes to fund initiatives aimed at easing the country’s cost-of-living crisis. While the budget received a generally positive market response, the Conservative opposition slammed it, accusing Finance Minister Rachel Reeves of misrepresenting the state of national finances—a claim she denied in interviews.
Starmer’s upcoming speech is expected to focus on the need to reform the welfare system. “We have to confront the reality that our welfare state is trapping people, not just in poverty, but out of work,” he will argue. The Prime Minister is also expected to announce increased investment in apprenticeships for young people and other measures to empower them economically.
Britain faces a record number of young individuals on long-term sickness leave and out of the workforce. Starmer highlighted that many people, particularly those who are neurodivergent or disabled, can become trapped in cycles of dependency, which he said “costs the country money, productivity, and most importantly, opportunity and potential.”
“We need to remove the incentives which hold back the potential of our young people,” Starmer said in extracts released ahead of the speech.
The Prime Minister will also outline plans to reduce regulatory burdens on businesses, part of a broader strategy to stimulate economic growth.
Last summer, the government had to retreat from previous proposals, including cuts to disability and sickness benefits, after more than 120 Labour MPs rebelled. Many within the party argue that Starmer’s leadership is overly focused on countering the rise of the hard-right, anti-immigration Reform UK party, sometimes at the expense of Labour’s traditional centre-left principles.
Starmer’s new plan represents a recalibration aimed at balancing social support with economic empowerment, while addressing internal party tensions and public scrutiny over the welfare system.