Labour's 'Botched' Welfare Reforms Fail 1 Key Test, Ex-Bank Of England Economist Claims

Andy Haldane and Keir StarmerLabour’s “botched” welfare reforms will not offer enough help to people trying to find gainful employment, according to the former chief economist at the Bank of England.MPs are set to vote on the government’s controversial plans to cut Universal Credit and Personal Independence Payments later today.Keir Starmer already had to water down the government’s initial proposals after more than 120 Labour MPs vowed to vote against them.But, even with these new concessions, dozens of his own backbenchers are still poised to rebel against the second reading of the bill in the Commons.It comes after the government’s own assessment estimated that 150,000 people will be pushed into poverty as a result of the reforms.Andy Haldane, who still sits on the Treasury’s Economic Advisory Council and worked at the UK’s central bank from 1989 to 2021, slammed the plans.He told BBC Newsnight that he was less than impressed with the proposed reforms, saying: “It looks rushed, it looks botched.”He asked why the government was trying to push through the reforms before reviews into the current system are published.The social security and disability minister Stephen Timms is currently looking into Personal Independence Payment (PIP) system, while former John Lewis boss, Charlie Mayfield, is working on another review on behalf of the government on business support for disabled and the long-term sick.Haldane said: “Why not await the Timms review, why not await the Charlie Mayfield review of how business might support disabled people back into work?“Ultimately it fails, for me, on the test of will this help people find gainful employment or not?“And there’s far too little support to enable that to happen.”“It looks rushed, it looks botched… Ultimately it fails for me on the test of: 'Will this help people find gainful employment or not?'”Former Chief Economist at the Bank of England Andy Haldane on government attempts at welfare reform, ahead of tomorrow's vote. #Newsnightpic.twitter.com/7bAwu1hB0d— BBC Newsnight (@BBCNewsnight) June 30, 2025And it seems several people on social media agreed with him.Andy Haldane nails it - these welfare reforms will do nothing to increase work. It's not tough love: just tough luck, made tougher. IDS was at least able to point to falling welfare claims. This time around, DWP predictions point to a calamitous surge... https://t.co/1pDOqb6vZI— Fraser Nelson (@FraserNelson) July 1, 2025This is spot on - it’s been a policy worked around budget savings ; not on ensuring the most vulnerable are protected . https://t.co/6eLSar7Hjx— Paul McLennan - MSP for East Lothian (@PaulMcLennan7) July 1, 2025Related...Keir Starmer Braced For Biggest Labour Rebellion Of His Time As PM Over Welfare CutsSadiq Khan Joins Growing Labour Backlash Against Starmer's Welfare ConcessionsLabour's Welfare Reforms Will Push 150,000 Into Poverty, Government Admits

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