Eltham’s Labour MP, Clive Efford, called for taxes on wealth as his party’s government unveiled a clampdown on social security benefits aimed at saving £5 billion a year by 2030.

Liz Kendall, the work and pensions secretary, said there would be stricter tests for personal independence payments (PIP), which are paid to people who face difficulty completing everyday tasks or getting around because of a long-term physical or mental health condition.

Among other changes, people under 22 will be banned from getting the health element of universal credit, and offered a “youth guarantee” of training or work instead.

Kendall said she wanted to “restore fairness” in the benefits system, and that millions of people were “trapped” claiming them.

But Efford, who represents Eltham & Chislehurst, was among a number of Labour MPs who stood up to question the government’s policy.

“I’ve heard many people make a moral case for the changes that my right honourable friend has announced today,” he said.

“Does she agree that over the last 20 years those people with large amounts of wealth have done extremely well, whilst average household incomes have stagnated and the standard of living for the overwhelming majority has gone down? So while we make a moral case for changes to the benefits system, shouldn’t we also be making a case for how we tax wealth as opposed to income?”

Kendall said that Efford was “right in saying that those with the broadest shoulders should share the biggest burden”, but did not directly address his point on wealth taxes. 

“That is why I am proud that we have tackled issues like closing loopholes in the non-dom tax status, and we’ve looked at the profits of the energy companies and many other areas,” she said. “I think that is an absolute principle of this Labour Party of fairness in the tax system.”

A number of Labour MPs and charities have criticised the plans. The Institute of Fiscal Studies, a think tank, said that about 900,000 people getting the universal credit sickness top-up could lose £2,400 from 2028-29.

Other changes include an above-inflation rise in the standard element of universal credit, a “right to try” jobs for disabled people which will guarantee they will not have to be reassessed for benefits if it does not work out, and the scrapping of reassessments for people with the most severe disabilities.

The Conservative shadow work and pensions secretary, Helen Whately, said the plan was “too little, too late”, and that Kendall “should have been tougher”.

One of the bodies criticising the plans was the Money and Mental Heath Policy Institute. Its chief executive, Helen Udy, said: ““These changes will mean that needing help to wash or get dressed because of your mental health wouldn’t be enough to qualify for PIP. 

“The government says it will ensure people with ‘genuine need’ aren’t affected, but we’re really concerned that these new reforms will take us further back to the days when people with mental health problems were treated as less worthy of help than those with physical health issues.

“The new ‘right to try’ a job without losing the benefits is welcome, as is the funding for personalised employment support for people with disabilities or health conditions. But introducing these measures alongside cuts to PIP and stopping young people from getting incapacity benefits will do more harm than good.

“It is a short-sighted approach that will have a devastating impact on many people’s finances and mental health, and we urge the government to rethink these plans.”

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