June 20, 2025
4 mins read

Foxcroft quits over cuts to disability benefits

The Labour MP wrote in a letter to the prime minister that she could not vote “for reforms which include cuts to disabled people’s finances”

Labour MP Vicky Foxcroft has resigned from her position as a government whip in protest against plans by the government to overhaul the welfare system, which she claims will significantly harm disabled people. Her resignation marks the first major internal rebellion against the controversial proposals, which have already prompted widespread concern among Labour MPs and disability rights groups.

Foxcroft, the MP for Lewisham North and former shadow minister for disabled people, informed Prime Minister Keir Starmer of her decision in a strongly worded letter, stating she could not support reforms “which include cuts to disabled people’s finances”. Her departure adds to mounting unease within the Labour ranks, with over 100 MPs having publicly raised concerns about the proposed changes to Personal Independence Payment (PIP) and Universal Credit.

In her resignation letter, Foxcroft acknowledged the urgent need for reform of the benefits system but sharply criticised the government’s approach. “The benefits system is in desperate need of reform,” she wrote, “but I do not believe that cuts to personal independence payment and the health element of Universal Credit should be part of the solution.”

She continued: “I absolutely understand the need to address the ever-increasing welfare bill in these difficult economic times, but I have always believed this could and should be done by supporting more disabled people into work.” Foxcroft expressed deep regret that the government had not embraced the changes she had hoped for, stating: “I have wrestled with this decision… but sadly it now seems that we are not going to get the changes I desperately wanted to see.”

Her resignation drew praise from colleagues who described her action as “principled” and reflective of her long-standing advocacy for disabled people. Fellow Labour MPs took to social media to commend her integrity, with one describing her as “a voice of conscience” within the party.

Earlier this week, the government unveiled its Welfare Reform Bill, which seeks to tighten the eligibility criteria for PIP and significantly reduce the sickness-related element of Universal Credit. Ministers claim these reforms are necessary to bring spiralling welfare spending under control and to encourage more people back into employment.

According to government figures, the cost of long-term sickness and disability benefits for working-age adults has soared by £20 billion since the start of the pandemic. Forecasts suggest this figure could rise to £70 billion within the next five years if left unchecked. Ministers argue that decisive action is needed to reverse this trend.

The Labour government has defended its plans, presenting them as part of a wider strategy to promote economic productivity and social mobility. A government spokesperson said: “This Labour government was elected to deliver change. The broken welfare system we inherited is failing the sick and most vulnerable and holding too many young people back. It is fair and responsible to fix it.”

They added: “Our principled reforms will ensure those who can work should, that those who want to work are properly supported, and that those with the most severe disabilities and health conditions are protected.”

The spokesperson also stressed that the government is determined to avoid the mistakes of previous administrations by tailoring support to individual needs rather than imposing one-size-fits-all solutions. “This is not about penalising disabled people,” they said, “but about ensuring the system is sustainable and effective for those it is designed to help.”

However, disability charities and campaign groups have reacted with alarm. Many argue the changes will have devastating consequences for vulnerable individuals and families. Some have warned of a potential increase in mental health crises, poverty, and even suicide, particularly among those who rely heavily on PIP and sickness benefits to survive.

A joint statement from a coalition of disability organisations said: “This is a betrayal of the disabled community. Slashing vital support will not help people into work – it will push many further into despair.”

Concerns have also been raised by the government’s own internal assessment of the impact of the proposed reforms. It estimated that 250,000 additional people could be pushed into poverty, including 50,000 children. Critics note that this analysis does not account for the potential positive impact of increased employment – but they argue the government has not outlined clear pathways to secure such outcomes.

Labour backbenchers, many of whom have remained uneasy about the welfare reform agenda since it was first mooted, are now under pressure to choose between party loyalty and principles. One senior MP described the mood within the parliamentary Labour Party as “tense and angry”, with some fearing a wider rebellion if the leadership does not alter course.

While Foxcroft’s resignation may not be enough to derail the bill, it signals a growing rift within the party over how to balance fiscal responsibility with social justice. Her departure could yet galvanise further dissent as the legislation moves through Parliament.

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Pakistan Risks Overstretching Itself in Yemen War

Pakistan’s expanding military role in Saudi Arabia amid the Yemen conflict could strain its defence resources and fragile finances…reports Asian Lite News Desk Pakistan’s military involvement in the war in Yemen may prove unsustainable because of mounting financial pressures and competing security demands, according to a new report. Islamabad’s growing military presence in Saudi Arabia risks stretching its defence resources while exposing the country to greater strategic and economic challenges. An article by Andrew Wilson in One World Outlook describes Pakistan’s involvement as a case of “fiscal and strategic overreach”, arguing that the country lacks the financial flexibility to sustain an expanded military commitment. Pakistan’s external finances depend heavily on an International Monetary Fund (IMF) programme, financial support from Gulf countries and remittances from Pakistani workers in the region. The report argues that deeper military involvement in the conflict could place additional pressure on these sources of financial stability. It also warns that deploying troops and military equipment abroad could weaken Pakistan’s capacity to address security challenges along its eastern border and deal with two domestic insurgencies. The move could also draw Islamabad into a conflict it has sought to approach cautiously. A Reuters report in May, citing Pakistani security and government sources, said Islamabad had deployed around 8,000 troops, a squadron of approximately 16 aircraft, mostly JF-17 fighter jets, two drone squadrons and a Chinese HQ-9 air-defence battery to Saudi Arabia. According to those sources, Riyadh was financing the deployment, with Pakistani personnel operating the equipment. The sources also said a confidential agreement contemplated the possibility of deploying up to 80,000 troops. Islamabad has not confirmed those figures, although it has acknowledged its military presence in Saudi Arabia, including the deployment of fighter jets at King Abdulaziz Air Base from April. The One World Outlook article argues that Saudi financial support can cover allowances and operating expenses but cannot easily replace military equipment needed elsewhere or resolve the political and strategic challenges of participating in the Yemen conflict. Pakistan’s defence budget is another concern. For the 2026-27 financial year, the federal government allocated PKR 3 trillion, or approximately $10.8 billion, to defence services. The allocation represents an 18 per cent increase from the original PKR 2.55 trillion provision and amounts to around 2.1 per cent of projected gross domestic product (GDP). Defence spending accounts for approximately 16 per cent of the federal government’s PKR 18.8 trillion expenditure. Military pensions are budgeted separately at PKR 822 billion, while debt servicing costs stand at approximately PKR 8 trillion, more than two-and-a-half times the defence allocation. The report argues that these competing financial obligations leave little room for additional military expenditure without placing further pressure on public finances. Pakistan’s reliance on IMF assistance also limits its fiscal flexibility. The country must meet the conditions attached to the programme, including a primary budget surplus target of 2 per cent of GDP and continued restraint on development spending. According to the article, these requirements make it difficult for Islamabad to finance an additional military commitment without compromising other budgetary priorities. Pakistan’s economic indicators offer limited reassurance. Economic growth for the 2025-26 financial year is estimated at between 3.6 and 3.7 per cent, while inflation reached approximately 10.3 per cent in September following an energy price shock. Foreign exchange reserves stood at around $21.5 billion at the end of September. Although this marks an improvement from the low levels recorded in 2023, the report notes that the reserves cover only a few months of imports. Financial assistance from Gulf partners remains central to Pakistan’s external stability. The article says Islamabad holds approximately $8 billion in Saudi deposits at its central bank. In July, the State Bank of Pakistan said Riyadh had extended the maturity of $5 billion in deposits to December 2028, easing the country’s immediate external financing requirements. A further $3 billion deposit was also extended in the spring. However, the article argues that these arrangements provide temporary relief rather than long-term financial independence, particularly as regional conflict threatens the stability of the Gulf economies on which Pakistan relies. The report concludes that Pakistan faces a difficult balance between supporting Saudi Arabia militarily and preserving the financial and military resources needed to address its domestic and regional challenges.

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