The Appointment and Departmental Restructure

Keir Starmer’s September 2025 reshuffle, following Angela Rayner’s resignation, created one of the most significant departmental shifts of his premiership. Pat McFadden MP (Wolverhampton South East) has been appointed Secretary of State for Work and Pensions, with an expanded remit that now also includes skills policy. This new “super-ministry” brings together welfare, employment, and training, reflecting Labour’s ambition to integrate economic participation with social security.

The move is intended to ensure that support for those out of work is tied directly to the provision of training and skills pathways, reducing duplication between departments and creating a clearer focus on helping people into sustainable employment.

McFadden’s Attitude to Social Security, Work–Pensions Divisions, and Long-Term Sickness

McFadden has consistently argued that the welfare system must remain affordable and sustainable. He has highlighted the sharp rise in long-term sickness and disability claims, warning earlier this year that nearly 1,000 people a day were joining these benefits, a trajectory that could see claimant numbers reach over four million by the end of the decade.

His stance suggests a determination to bring welfare, pensions, and employment support closer together. The integration of the skills brief reinforces this approach, signalling that financial support should be accompanied by active measures to retrain and re-engage people in work wherever possible.

The emphasis on long-term sickness is particularly significant. McFadden is expected to press for a rebalancing of support, with more rigorous eligibility tests for new claims, coupled with investment in employability and rehabilitation programmes.

A Review and Reorganisation of the Welfare State?

The structural changes to Whitehall suggest that Labour is indeed embarking on a review and reorganisation of the welfare state. The traditional division between providing benefits (pensions, Universal Credit, disability support) and enabling participation (education, training, work placement) is being collapsed into a single framework.

The emerging shape of this reorganisation is clear:

This reflects a wider Labour narrative of combining fiscal responsibility with a practical commitment to economic participation.

Realism of Delivery Ahead of the Next Election

It is doubtful that major reforms can be fully delivered before the next general election. The legislative timetable for tightening benefit eligibility and the practical complexity of merging departmental functions mean results will only begin to be visible late in this parliament. Most measures, such as changes to PIP eligibility, are not due until 2026 or later.

At best, McFadden will be able to establish the framework and direction of reform, laying the groundwork for a second-term Labour government. Full implementation, and evidence of measurable success, will almost certainly take longer.

The Impact of Reform UK’s Rise on Labour’s Welfare Thinking

The rapid rise of Reform UK poses a direct challenge to Labour’s electoral strategy. Reform’s hard-line rhetoric on welfare dependency and migration risks drawing support from disaffected voters in key constituencies.

Labour’s response under McFadden is likely to emphasise two themes:

The challenge for Labour will be to present this as a progressive reform—firm but supportive—without alienating either its traditional base or the voters Reform is seeking to attract.

Conclusion

Pat McFadden’s appointment to lead the newly configured Department for Work, Pensions and Skills marks a decisive moment in Labour’s approach to welfare reform. His record and public statements indicate a tougher stance on eligibility, a sharper focus on long-term sickness, and a belief that welfare must be tied more closely to training and work.

This amounts to an attempt to re-engineer the welfare state into an activation system rather than a passive safety net. However, the scale of reform means only the foundations are likely to be laid before the next election. Meanwhile, the rise of Reform UK is shaping Labour’s strategy, pushing it towards a more assertive position on welfare while still seeking to frame reform as constructive and fair.

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