Chancellor Rachel Reeves to Announce Further Welfare Cuts in Spring Statement
Chancellor Rachel Reeves is expected to unveil additional welfare cuts in her Spring Statement following the Office for Budget Responsibility’s (OBR) rejection of the government’s earlier savings estimates. The OBR assessed that the previously announced measures, including narrowing eligibility for Personal Independence Payments (PIP), would save £3.4 billion instead of the projected £5 billion. To address the shortfall, Reeves plans to freeze Universal Credit incapacity benefits for new claimants until 2030 and reduce the basic rate of Universal Credit in 2029.
The Spring Statement will also include a £2.2 billion increase in defense spending, funded by cuts to other areas, as part of the government’s strategy to balance the books amid economic challenges. Reeves aims to maintain her fiscal rules without raising taxes, focusing on spending cuts instead. The measures have sparked criticism from Labour MPs and disability advocates, who argue that the cuts will push vulnerable individuals further into poverty.
For more details, you can read the article