The re-shuffled Downing Street team will revamp disability benefits payments to save money.
The Prime Minister has revamped his Downing Street team (Image: Getty)
Sir Keir Starmer is expected to push for further welfare reforms as he aims to cut government spending. It comes after the Prime Minister’s recent shake-up of Downing Street as MPs returned from their summer break.
It is believed that plans to reform welfare will be a main aim of the new team, with a focus on overhauling the disability payments system. The government hopes the new system will get people on long-term sickness back to work across the UK.
As reported by the Telegraph, Starmer carried out a reshuffle of Downing Street on Monday (September 1), including appointing Darren Jones as his chief secretary. The move appeared to undermine the authority of Rachel Reeves who was one of the key ministers in shaping the welfare plans last spring.
However, the £5 billion package of welfare savings was gutted and Starmer is now expected to use more personal authority to make sure cuts get through the Commons. His spokesman said on Tuesday that Reeves’ authority had not been sidelined by the arrival of the new economic advisers in Downing Street.
He said: “The Prime Minister and the Chancellor want the strongest possible team on the pitch to drive economic growth.”
Reeves is now faced with having to raise tens of billions more in annual revenue in the upcoming November Budget. She is expected to target welfare and raise taxes.
Personal Independence Payment, one of the main disability benefits, is among the payments which faces review. Sir Charlie Mayfield, a former John Lewis boss, will also give employers advice to help disabled employees stay in work.
Darren Jones has been appointed as the Prime Minister’s chief secretary. (Image: Getty)
Daniel York-Smith has also been appointed Starmer’s new principal private secretary. He was previously the Treasury’s director general, overseeing welfare policy.
Recent forecasts predict that UK spending on health and disability benefits will jump from around £70 billion to £100 billion by the end of the decade. Senior figures close to Starmer are reportedly concerned by the increases and now plan to save money.
A spokesman for the Work and Pensions Department said: “This government is determined to deliver a sustainable welfare system that is fair to taxpayers and those who use it.
“Supporting people into good, secure jobs is at the heart of our plans, which is why we are investing a record £3.8bn into helping people into work and giving every young person the chance to earn or learn.”
