The UK government is standing by its recent welfare cuts, despite warnings from economists, think tanks, and even some of its own backbench MPs that the measures could push tens of thousands of people into poverty.
On Wednesday, Chancellor Rachel Reeves presented billions of pounds worth of new cuts in the House of Commons. While Reeves maintains the government is not pursuing austerity, a stance it has promised to avoid, critics argue that the cuts will harm vulnerable groups, especially long-term unemployed individuals.
Reeves’ plan aims to encourage long-term unemployed people to reenter the workforce, but the Office for Budget Responsibility (OBR), a government advisory body of independent economists, has projected that 250,000 more people, including 50,000 children, will fall into poverty by the end of the decade if the cuts proceed as planned.
In defense of her measures, Reeves has dismissed the OBR’s projection, suggesting it overlooks the benefits of increased workforce participation and additional employment support. “We’re putting £1bn (€1.2bn) in for targeted employment support to get people back to work,” she said. “So I’m confident that our plans, far from increasing poverty, will actually result in more people having fulfilling work, paying a decent wage to lift themselves and their families out of poverty.”
Reeves reiterated this on Thursday, expressing confidence that the reforms would result in more people finding work. “And we know that if you move from welfare into work, you are much less likely to be in poverty,” she said. “That is our ambition, making people better off, not making people worse off, and also the welfare state will always be there for people who genuinely need it.”
However, critics from leading anti-poverty organizations have raised alarms about the potential consequences of the cuts. Paul Kissack, CEO of the Joseph Rowntree Foundation, which campaigns against poverty, warned that the measures would exacerbate existing hardship. “The Chancellor also said the world has changed, and today’s announcements places the burden of that changing world on the shoulders of those least able to bear the load — the 3.2 million families left worse off by these cuts,” he said. “With living standards for the poorest under continuing assault, the government needs to protect people from harm with the same zeal as it attempts to build its reputation for fiscal competence.”
Additionally, the Labour government’s economic recovery plans suffered a setback on Wednesday when the OBR reduced its annual growth forecast to just 1%.
