UK Labour Party's Welfare Benefit Reform Controversy... "Will Cure Welfare Sickness" [AK Radio]

Personal Independence Payment Cut by 9.4 Trillion Won
A Drastic Measure Amid Recession and Defense Buildup

The UK Labour Party government has announced a significant cut to welfare benefits. The reduction amounts to approximately 9.4 trillion won in Korean currency. It is unusual for the UK Labour Party, known as a global progressive party, to cut welfare budgets to this extent, sparking considerable controversy within the UK. Even within the Labour Party, debates have arisen questioning whether the party is shifting too far to the right or adopting right-wing policies.

The welfare benefit targeted for large-scale cuts by the Labour government this time is called the "Personal Independence Payment." This system primarily supports young people in their teens and twenties who are orphans, come from low-income families, or have congenital disabilities that make independent living difficult, providing up to ?184 (about 340,000 won) per week. Calculated monthly, this amounts to roughly 1.28 million won.

This amount is not insignificant, and many young people have started applying for it. Currently, about 3.6 million people, roughly 10% of the working-age population in the UK, receive this benefit. Because the eligibility criteria are not very strict, there has been ongoing controversy over fraudulent claims by young people who are not from low-income backgrounds. In particular, critics argue that young people receiving this money do not seek employment since their basic needs for food, clothing, and shelter are met.

Within the Labour Party, including UK Prime Minister Keir Starmer, criticism has been raised, stating, "Millions are wasting their lives without even the will to work," and "This is morally bankrupting people. We need to cure welfare dependency." From this perspective, many agree that cutting the benefit itself is appropriate, but the problem lies in the fact that the party pushing this is the Labour Party.

This system was originally targeted for reform by right-wing parties such as the UK Conservative Party, and the Labour Party had opposed such reforms. However, now that they have come to power and announced plans to abolish it, criticism has emerged that the party's identity is being shaken. The controversy over whether the party is veering too far to the right has begun.

Keir Starmer, UK Prime Minister. Photo by EPA and Yonhap News

Analysts suggest that the Labour Party's decision is due to the fact that most European countries, not just the UK, are facing the new challenge of strengthening defense capabilities. The UK government has declared plans to increase defense spending from about 2% of GDP to 2.5% by 2030 and 3% by 2035. This means defense spending must increase by more than 50% compared to now.

The UK has announced plans to increase not only conventional forces but also its nuclear weapons stockpile and to build new nuclear-powered submarines as part of its defense enhancement strategy. This is a response to the growing threat of Russian aggression, even as the Ukraine war appears to be moving toward a ceasefire. The problem is that the UK economy has been in a prolonged recession since COVID-19. With tax increases difficult, the government seems to have decided to cut non-urgent budgets first to fund defense spending.

If the UK had a strong economy like Germany, the government could run large deficit budgets or issue bonds to increase defense spending, but given the current economic situation, there are concerns that doing so could collapse the economy. Therefore, the government plans to make significant cuts to the controversial Personal Independence Payment to finance defense spending. However, with severe hardships faced by the public and energy and public utility prices having increased nearly tenfold since the outbreak of the Ukraine war, opposition to welfare cuts is expected to be strong.

Moreover, this system was originally created by the Labour Party starting after the 2007 financial crisis and was only passed in 2013 after much difficulty. There is significant criticism of the Labour Party overturning its own policy now. The main justification for cutting the benefit is to encourage young people who can work but do not to seek employment, but the UK's unemployment rate was 4.4% at the end of last year, considerably higher than South Korea's 2.7%. There are concerns that cutting benefits could threaten the livelihoods of low-income and disabled young people who want to work but cannot find jobs.

AFP·Yonhap News

Such policy changes could lead to the loss of traditional supporters and destabilize the government. Nevertheless, public opinion largely accepts that the security environment in the UK and Europe is too urgent to avoid these measures. This trend is not limited to the UK; many countries are experiencing increased security concerns following the COVID-19 pandemic, the Ukraine war, and the Middle East conflicts, leading to a societal shift toward conservatism beyond party identities.

The impact is especially significant in Europe. Since the end of the Cold War, Europe has been known as a "welfare paradise" with extensive welfare policies, but now most European countries are drastically cutting welfare and increasing military spending. Whereas in the past, military spending was reduced while welfare was expanded, the trend has reversed to reducing welfare while boosting military budgets.

If this trend continues, there are concerns that far-right parties could gain more power beyond the current centrist conservative and center-left parties. In fact, far-right parties have made significant gains in recent general elections in France, Germany, and the UK. These parties, once minor factions, are now becoming the second-largest parties in parliament and are moving toward becoming ruling parties.

As military tensions between countries increase and arms races continue, the possibility of far-right parties coming to power grows. There are even concerns that wars similar to World War I and II, when far-right parties ruled Europe, could recur. Since former US President Donald Trump declared, "Europe must take care of its own security," European countries have shifted toward expanding their military capabilities. While this is primarily to counter the Russian threat, new problems could arise from arms races among European countries themselves. Looking at history, there are growing worries that the world is heading toward an uncertain arms race.