Prime Minister Keir Starmer has slammed the current Department for Work and Pensions (DWP) as "unfair" ahead of looming cuts to benefits.
Labour is set to cut £6billion from welfare support with major reforms to Personal Independence Payments (PIP) and Universal Credit.
Notably, the Government is planning to implement tougher assessments for disability benefits and freeze certain payments.
Starmer has described the existing welfare system as the "worst of all worlds" that is "discouraging people from working".
Speaking to the parliamentary Labour party, the Prime Minister called the number of people out of work or training "indefensible and unfair".
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Starmer has doubled down on the looming cuts to benefits being drawn up by the DWP
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The reforms aim to make the welfare bill "more sustainable" according to the DWP, with changes particularly targeting PIP, a benefit designed to help those with disabilities.
The DWP aims to save £5billion by toughening the eligibility criteria for PIP. As part of the plan, PIP payments will be frozen and will not increase in line with inflation.
Many people currently receiving PIP could lose their entitlement to the benefit entirely under the new assessment system.
A DWP spokesman said: "We have been clear that the current welfare system is broken and needs reform, so that it helps long-term sick and disabled people who can work to find employment."
The basic rate for Universal Credit will increase for those seeking or already in employment, but decrease for those deemed unfit for work.
He highlighted that one in eight young people are not in education, employment or training, calling it "a wasted generation".
"That's unsustainable, it's indefensible and it is unfair, people feel that in their bones," he added.
The Prime Minister emphasised Labour values, stating: "We believe in the dignity of work and we believe in the dignity of every worker."
He insisted he was "not afraid to take the big decisions needed" on welfare reform. Disability charities have expressed serious concerns about the planned cuts.
James Taylor, Executive Director of strategy at disability charity Scope, warned: "Ripping PIP away will be catastrophic for disabled people. PIP exists because life costs more if you are disabled."
He emphasised that many disabled people rely on PIP for essential needs. "Many disabled people use PIP to get to and from work and to pay for essential equipment like mobility aids," Taylor said.
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PA"Making it harder to get benefits will just push even more disabled people into poverty, not into jobs." The changes could affect around four million people currently receiving disability support.
Louise Murphy, Senior Economist at the Resolution Foundation, described the package as combining "sensible reforms" with "hugely controversial cuts".
"Freezing PIP next year will result in a real-terms income loss for around four million people, 70 per cent of whom are in low-to-middle income households," Murphy cautioned.
She urged the Government to "tread very carefully" with the reforms. The DWP insists reforms are necessary to create a more sustainable welfare system.
"Without reform more people will be locked out of jobs, despite many wanting to work. That is not just bad for the economy, it's bad for people too," a department spokesman said.
