Sir Keir Starmer, the Prime Minister, has expressed his disapproval of the Office for Budget Responsibility’s analysis of the consequences of his proposed benefit changes. During an appearance before a parliamentary committee, he criticized the watchdog for assuming that no one would alter their behavior in response to the government’s plans. Sir Keir believes that the measures will have a significant impact, particularly in terms of saving money and encouraging more individuals to enter the workforce. Despite this, there is internal dissent among his own MPs regarding the proposed cuts.
The Prime Minister faced scrutiny over his proposals while addressing the Liaison Committee, comprised of senior MPs. Debbie Abrahams, chair of the work and pensions committee, highlighted that government assessments indicated the changes could push between 250,000 and 400,000 individuals into poverty. Concern was raised about the potential long-term implications for children growing up in poverty, who may face challenges accessing employment in the future. This prompted questions on how the Prime Minister planned to address the underlying causes of poverty as opposed to exacerbating them.
In response to these concerns, Sir Keir emphasized the importance of factoring in the potential for behavior change in the impact assessments. He pointed out that the OBR had not accounted for any changes in behavior and had not evaluated the impact of the proposed policies. The OBR’s recent assessment of the government’s spending plans recognized potential benefits in helping individuals with health issues find employment but highlighted the need for further details to assess effectiveness. Additionally, the watchdog indicated that it required more time to analyze the impact of changes to health and disability benefits eligibility on the labor market.
Overall, the government’s proposed changes aim to implement stricter eligibility criteria for personal independence payments and freeze incapacity benefits under universal credit. The Prime Minister also touched upon other subjects during the committee hearing, such as expressing concern about US tariffs, discussing the future of the Scunthorpe steel plant, and providing updates on the review into social care. The opposition party criticized the government for its approach, citing their previous legislation that mandates consultation with the OBR on significant tax or spending commitments
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