PM Keir Starmer denied unleashing a fresh wave of austerity – despite setting out plans that will cut thousands of jobs by abolishing NHS England and slashing the benefit bill

Keir Starmer has denied unleashing a fresh wave of austerity – despite setting out plans that will cut thousands of jobs and slash the benefit bill.

The PM was quizzed after announcing NHS England will be scrapped with the agency now brought back into the Department for Health and Social Care to “cut bureaucracy”.

Next week the Work and Pensions Secretary Liz Kendall is also expected to set out billions of pounds in cuts to disability benefits as the government seeks to cut the welfare bill.

It has been reported the government is seeking to cut £5billion from PIP – a benefit that helps people with extra living and mobility costs linked to their disability. The government may also freeze the support next year so it does rise in line with inflation.

Pressed on the moves during a speech on Thursday, the PM replied: “There’s no return to austerity.

“I said that during the election and we’re not going to austerity. I run a public service [as Director of Public Prosecutions] during the years of austerity and I saw what was done in the particular case. Part of the problem we’ve got with our public services is what was done with them a decade or so ago, so we’re not going down that route.”

It comes after Mr Starmer was quizzed on the issue at PMQs on Wednesday – but the PM warned the current welfare system is “indefensible”.

The PM told MPs: “I come from a family that dealt with disability through my mother and brother over many years, so I do understand the concerns that have been raised by him, but we inherited a system which is broken.

“It is indefensible, economically and morally, and we must and we will reform it.” He added: “We will protect those who need protecting. We will also support those who can work back to work. Labour is the party of work. We are also the party of equality and fairness.”

The move has also triggered rare criticism from the TUC, the trade union umbrella body, in a sign of the deep unhappiness in the wider movement.

Mr Nowak said: “A major lesson from the Tory years is that austerity damaged the nation’s health. We must not make the same mistake again. Pushing disabled people into hardship with cuts to support will only make the current challenges worse – and will not win public support.”

He said unions share hopes to improve the nation’s health, but added: “Cutting PIP is not the solution – not least because it enables many disabled people to access work so that they do not have to rely on out of work benefits.”

Labour MPs are being summoned to Downing Street this week to discuss the plans as No10 seeks to head off a rebellion. One backbencher told the Mirror there are “lots and lots of concerned MPs, in no way just the usual suspects.” The MP said there was support for getting people back to work but deep concern over whether the primary goal is spending cuts.

They added: “[There is] absolute fury about the spin that is positioning it as spending cuts first and terrifying disabled people. Ministers working hard to reassure.” A second MP said: “It’s beyond grim.”

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