Prime Minister Keir Starmer has condemned Britain’s benefits system as the "worst of all worlds," arguing that it discourages people from working and fails those who genuinely need support.
Addressing Labour MPs in a private meeting on Monday night, Starmer expressed deep concern over the rising number of people out of work or education, calling it “indefensible and unfair.” He highlighted that "one in eight young people" are not in employment, education, or training, describing this as a symptom of a "wasted generation."
"The people who really need that safety net still do not always get the dignity they deserve," he said. "That’s unsustainable, it’s indefensible, and it is unfair. People feel that in their bones. It goes against the fundamental British value that if you can work, you should."
Concerns over benefit cuts and defence spending
Starmer's remarks come amid growing discontent within Labour ranks over Chancellor Rachel Reeves’ proposed cuts to disability and long-term sickness benefits. Some MPs fear these measures are being introduced to balance government spending at the expense of vulnerable people.
The speech also followed backlash over Starmer’s recent decision to increase defence spending to 2.5% of GDP by 2027. This funding boost will be made possible by cutting the UK’s international aid budget to 0.3% of Gross National Income (GNI), a move that has sparked controversy.
Government’s vision: reform and security
Starmer emphasized that his government is focused on shaping the future rather than merely reacting to global changes.
“That is what everything this government does is about,” he stated. “That is how we are clearing the asylum backlog at record pace, cutting NHS waiting lists for four consecutive months, and ensuring wages are rising faster than prices.”
On foreign policy, he reiterated his “unwavering” support for Ukraine, referencing his recent meetings with US President Donald Trump and Ukrainian President Volodymyr Zelenskyy.
“Our support for Ukraine is unwavering," he said. "That is why I met with President Trump to strengthen security for Ukraine, Europe, and the UK. It’s also why I hosted President Zelenskyy in London and why I announced the biggest sustained increase in defence spending since the Cold War.
"Our security must come first. The extra defence spending will rebuild industry, support businesses, and create good, secure jobs for the next generation. That is what we owe the British people."
Welfare reform: ‘a system that works for everyone’
Turning to welfare reform, Starmer warned that the cost of disability and sickness benefits for working-age people could soar to £70 billion annually by 2030 if left unchecked.
“We’ve found ourselves in the worst of all worlds—wrong incentives discouraging work, a spiralling taxpayer bill, and a system that still fails those who truly need help," he said.
Outlining his vision, Starmer insisted Labour must offer a balanced approach. “If you can work, we will make work pay. If you need help, the safety net will be there for you. But as the Labour Party, we believe in the dignity of work and the dignity of every worker.”
He stressed that bold action is needed to address deep-rooted issues. “Whether it’s welfare, immigration, public services, or public finances, we cannot afford to tinker around the edges. We must roll up our sleeves, take responsibility, and implement the necessary reforms to fix what is broken.” Photo by Simon Dawson / No 10 Downing Street, Wikimedia commons.