Labour says Britain's benefits culture is unhealthy as unemployment hotspots are revealed

LONDON — Ministers acknowledged that Britain's benefits culture is unhealthy and must be curbed as an official map highlighting unemployment-benefits claims was published. Work and Pensions Secretary Pat McFadden signaled that eligibility for universal credit could be tightened, and he did not rule out ending health-related universal credit payments for claimants under 22.

McFadden described welfare reform as a continuing priority and suggested changes could come before the Timms review into Personal Independence Payment is published, though officials said the review will shape any new proposals and is not due for about a year. A House of Commons Library analysis based on official figures identified the worst areas for unemployment-related benefits, including Jobseeker’s Allowance and universal credit with a work requirement. In the Birmingham Perry Barr constituency, 15.8% of residents aged 16-64 were claiming benefits as of August. The number of claimants aged 18-24 rose by 9%, about 26,550 more youths than a year earlier. The overall UK claimant rate fell slightly from 4.1% to 4% over the year through August.

Earlier this month, Mr McFadden was appointed to head a new “super ministry” that combines the skills remit previously under the Department for Education with responsibilities aimed at driving economic growth. The move has fed speculation that Labour leader Keir Starmer may be preparing another push to reform welfare, especially after a backbench rebellion thwarted a previous attempt to implement cuts earlier this year. Reeves has been under pressure to outline measures to balance the books ahead of the Budget in November, while warning that short-term reforms are constrained while the Timms review runs its course.

In financial markets, long-term borrowing costs rose to levels not seen since 1998 amid concern about government discipline over public finances and a volatile global bond market. Yields on 30-year gilts have since eased back toward last month’s levels as investors digest the government’s reform signals and growth outlook.

Officials say welfare reform remains an ongoing process and that the current system is unsustainable in the long run, arguing that the program should better connect people with work and training opportunities. The government has stressed that any changes will be guided by the Timms review's findings and will seek to support young people in acquiring skills and pathways to employment while controlling the cost of the benefits system.