The UK Conservative Party has announced plans to cut £36 billion from the welfare budget. The focus will be on limiting sickness and disability payments. Kemi Badenoch, the party leader, made this announcement during a speech detailing the proposed cuts. She noted that the welfare budget is larger than the entire GDP of Ukraine. Badenoch argued that current spending is "crushing our economy."
Key Details
Badenoch's proposals include saving £13.7 billion by reforming sickness and disability allowances. This would stop payments for common back or joint problems and mild mental health issues. The party also plans to cut benefits for foreign nationals without EU settled status, which they estimate will save £9.5 billion. Other measures include reinstating the two-child benefit cap, expected to generate £3.1 billion. They also plan to replace cash transfers for children with mild learning difficulties with non-monetary support, which could save £2.8 billion. The Conservatives aim to recover £1 billion by addressing welfare fraud and administrative errors.
Background
Badenoch defended the cuts by saying that people with physical or mental health challenges can still work. She mentioned examples of double amputees running marathons and autistic individuals leading major tech firms. She stated, "The question of whether we should cut welfare goes to the heart of what sort of country we want to be."
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The proposed cuts could affect sectors related to social services and public welfare funding. Reduced welfare spending may lead to lower consumer spending, especially in retail and service sectors. Investors will be watching for the upcoming parliamentary discussions on the welfare bill. These talks will clarify the government's plans regarding these proposals.
Based on reporting by: theguardian.com, independent.co.uk