Money Wellness

benefits

Published 08 Sep 2025

3 min read

Are welfare cuts on the cards following Starmer’s reshuffle?

The government has made a big change at the top of the Department for Work and Pensions (DWP) - and it’s been suggested it could signal future welfare cuts.

Department for Work and Pensions sign
routledge

Written by: Rebecca Routledge

Head of Content

Published: 8 September 2025

What’s happened?

Sir Keir Starmer has appointed Pat McFadden as the new secretary of state for work and pensions. He replaces Liz Kendall, who had tried to bring in cuts to disability benefits but was forced to back down following strong opposition from Labour MPs.

Mr McFadden has been given a bigger department to run. DWP will now also take on responsibility for adult skills, which used to sit within the Department for Education. The focus, according to government sources, will be “growth and jobs, jobs, jobs”.

What does this mean for benefits?

Starmer and the chancellor, Rachel Reeves, have both said the current welfare bill is “unsustainable”. They say their priority is to reduce the number of working-age people who are unemployed due to sickness or disability and help them find jobs.

Under Liz Kendall, there were proposals to cut £5bn from the benefits bill by restricting access to personal independence payment (PIP). Those plans were largely abandoned after Labour MPs made it clear they wouldn’t support them.

With Mr McFadden now in charge, the government may revisit ideas about tightening eligibility or changing how sickness and disability benefits work. However, no new policies have yet been announced.

What’s clear right now

  • Support is still available: Existing benefits, including PIP and universal credit, remain unchanged for now.
  • Focus on work: The government’s messaging is strongly about helping more people into jobs and boosting skills.
  • Pressure to cut costs: Ministers continue to signal that reducing the overall welfare bill is a priority.

What’s not yet clear

  • Whether proposals to limit access to benefits will be revisited.
  • How any changes will affect people who are unable to work due to health conditions.
  • Whether MPs who refused to support previous benefit reform plans will be open to a revised proposal from Mr McFadden.

What you can do

If you’re worried about your situation, remember:

  • No immediate changes have been made to existing benefits.
  • If you rely on PIP, universal credit or other support, your current entitlement continues as normal.
  • If future benefit reforms or anything else leave you facing financial hardship, we’re here to help.

We’ll also keep a close eye on developments so you know what changes - if any - are coming, and what they might mean for you.

 

routledge

Written by: Rebecca Routledge

Head of Content

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

Published: 8 September 2025

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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routledge

Written by: Rebecca Routledge

Head of Content

Published: 8 September 2025

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