“Ministers are concerned that one in ten people of working age are claiming a health or disability benefit Ryan Sabey, Deputy Political Editor Published: 22:50, 5 Mar 2025 Updated: 22:51, 5 Mar 2025 CHANCELLOR Rachel Reeves has a “moral case” for slashing the benefits bill in her upcoming spring statement, a Cabinet colleague says. The”, — write: www.thesun.co.uk
- Ryan Sabey, Deputy Political Editor
- Published: 22:50, 5 Mar 2025
- Updated: 22:51, 5 Mar 2025
The Chancellor is poised to swing the axe on welfare payments and Whitehall spending as her £10 billion headroom has been wiped out by poor economic conditions.
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Justice Secretary Shabana Mahmood has backed the Chancellor, saying: ‘There is a moral case here for making sure that people who can work are able to work’Credit: Getty
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Chancellor Rachel Reeves is ready to make tough decisions, with welfare cuts and spending slashed after £10bn headroom wiped outCredit: PAProposals to root out wasteful spending are understood to have been submitted to the official watchdog but are seen as politically painful.
Justice Secretary Shabana Mahmood said: “There is a moral case here for making sure that people who can work are able to work and there’s a practical point here as well, because our current situation is unsustainable.”
It comes after a leaked forecast from the Office of Budget Responsibility watchdog cut economic growth and cost of borrowing rose after bond market turmoil at the start of the year.
Sources said “the world has changed” since her Budget last October in the wake of trade tariffs and higher inflation.
Ministers are concerned that one in ten people of working age are claiming a health or disability benefit.
Cabinet Office Minister Pat McFadden and Health Secretary Wes Streeting are also looking to cut the number of civil servants and cut costs.
Number 10 said that the welfare system was “failing young people, failing people with health conditions and disabilities and denying people the opportunities and support they need”.
A thousand work coaches will be deployed to help 65,000 sick and disabled people a year in a bid to get them into work under new welfare plans.
But Ministers still have 2.8 million who are economically inactive due to a long-term sickness with the incapacity benefit bill to hit £70 billion by 2029.